What: Nordstrom CEO cites strain across all consumer demographics affecting the shift in its merchandising mix as part of its plan to improve the retail group’s performance in 2023.

Why it is important: As a response to the uncertainty surrounding the next year with low-income households the most affected economically, clean inventories, improving Nordstrom Rack and elevating the customer experience are step one for the 2023 agenda.

At the beginning of 2022, Nordstrom announced its mission to simplify its outlet offshoot Nordstrom Rack’s focus “to great brands at great prices.” Thus, the company is looking to differentiate by offering brands not normally available in off-priced channels, and which customers can identify from the regular Nordstrom assortment.

Like many other retailers, Nordstrom is looking to clear out inventory in light of softening demand for clearance during the inventory glut.

Finally, the supply chain is a key focus for reactivity in the next year for Nordstrom and other companies hoping to survive a potential recession.

Nordstrom’s 2023 Focus