What: Nordstrom talks about how the retailer is banking on a rebound in tourism to drive excitement in New York and the innovative new Asos space in Los Angeles.

Why it is important: Nordstrom continues to stand out thanks to its laser focus on customer service and a liberal return policy and the Rack chain is the primary vehicle for attracting new shoppers.

Nordstrom reported last month that its total company net sales increased 18.7% to $3.5 billion in Q1 of 2022, compared with the same period in fiscal 2021.

In the first quarter, core categories including men’s and women’s apparel, shoes and designer had the strongest growth against 2021 as customers stepped out again in full force for social events, travel and return to office.

Nordstrom explains, that as tourism picks back up in New York there were a lot of foreign-speaking customers in the stores. Hopefully, tourism continues to build as we slowly come out of the pandemic. Nordstrom is excited to start serving tourists again as there was a bit of a hiatus. They got the opportunity to grow the business with the local New York customer in a more organic way than they ever would have which they believe will serve them well over time.

It is important to have a constant flow of newness in the New York store as the New York customer both gives Nordstrom license and expects them to deliver something new. In the business of department stores, trends just as often start in Southern California and head East as they start East and go West. But the New York customer demands a unique offering. Nordstrom carries the big brands and categories like home where there’s potential to offer super unique brands.

Big cities are important to Nordstrom as young people like to live in cities. Nordstrom sticks to what they’re good at, which is running a great store. Their downtown stores are performing well and now that the world’s opened up, people need clothes that are going to be seen by other people. Customers are going out, going to events, and Nordstrom is here to serve them.

Nordstrom opened the first dedicated Asos in-store space at The Grove in Los Angeles in May, which is a location that has always punched its weight as a destination for influencers. When Nordstrom thought about how to make the introduction of Asos, it felt like the perfect place to do it. There was no prototype Asos store, so they have been making it up. So far, the customer is responding well.

Jamie Nordstrom on the tourist rebound in NYC, the future of cities, and bringing Asos to The Grove