What: The president of Nordstrom stores talked with WWD

Why is it important: As it recovers from the pandemic, the retailer sees growth opportunities with Topshop and other Asos-owned brands, and the annual anniversary sale.

Last Sunday, the company disclosed that it took a minority equity position in the Topshop, Topman, Miss Selfridge and HIIT brands owned by Asos, which acquired them from the Arcadia Group that went bankrupt last year. Nordstrom has been selling Topshop and Topman merchandise in the U.S. exclusively since 2012, though that business was impacted by Arcadia’s bankruptcy last year. “The whole supply chain turned upside down. Product delivery was disrupted. But the demand is still there,” said Nordstrom. “The customer doesn’t care about Arcadia’s financial situation or who owns Topshop.”

The executive outlined current selling trends, citing a pickup in wedding-related fashion with weddings resuming. He said casualization and comfort continue strong, abetted by the pandemic; as do flats, and athleisure. Bestselling brands include Alo, Sweaty Betty, and Zella, a Nordstrom-owned brand. Denim is also selling, while men’s suits, historically a big part of Nordstrom’s business, is questionable. He said shopping fashion to wear at charity and industry events seems still on hold, yet should resume this fall. Regarding e-commerce, digital accounted for more than 30% of the company’s volume at the start of 2020. The pandemic pushed digital to 54% of sales by the fourth quarter last year.

The Anniversary Sale is staged across the entire fleet of Nordstrom department stores. It enables the retailer’s highest-spending customers a first crack at shopping designer discounts on new fall styles, at 25 to 40% off. Other loyal but less spending cardholders get access soon after, and on 28 July. “Our two biggest scaled events are the Anniversary Sale and Holiday. A disproportionate amount of our planning and energy are on those two periods,” said Nordstrom. On volume, “They’re pretty darn close, and they are of equal importance to us. But they’re different. This is more of a loyalty event.”

Nordstrom has forecast annual revenue to reach USD 17 billion in the next three to five years, which compares to USD 10.38 billion in sales last year, and USD 15.13 billion in 2019. Last year, Nordstrom had a net loss of USD 690 million, versus reporting a profit of USD 496 million in 2019.

According to the executive, traffic and demand have picked up in the last four months as states lowered COVID-19 restrictions. Still, he acknowledged that Nordstrom’s urban stores more focused on tourism, including those in Chicago, San Francisco, Seattle and New York, haven’t seen the same kind of lift in business as suburban stores.

Jamie Nordstrom on Business, Anniversary Sale and Asos 

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