What: Nordstrom is targeting Gen Alpha with new "Young Adult" beauty kiosks and an online category, aiming to capture the growing market of young beauty consumers.

Why it is important: This initiative reflects a strategic adaptation to changing consumer demographics and preferences, positioning Nordstrom to capitalize on the increasing spending power of Gen Alpha, thereby diversifying its revenue streams amid a softer luxury market.

Nordstrom has introduced a new approach to engage with the Gen Alpha demographic by launching "Young Adult" beauty kiosks in select stores and creating an online category dedicated to this segment. These kiosks, adorned in lavender and located on teen apparel floors, feature popular brands like Kiramoon and Kaja, alongside clothing from teen-friendly brands such as Pacsun and Asos. Currently available in six locations, including Seattle and Chicago, the initiative also extends online, offering over 850 products. This move aligns with the broader trend of increased beauty spending among high school students, which rose by 23% in 2024. Nordstrom's strategy involves leveraging data from TikTok and its website to identify trending categories, such as the "everything shower," which has led to successful product additions like Oui the People shaving brands. By focusing on youth-coded but not overly juvenile products, Nordstrom aims to attract young consumers by offering a sophisticated yet appealing shopping experience. This strategy not only addresses the demands of young shoppers but also seeks to offset challenges in the luxury market by tapping into alternate revenue streams.

Nordstrom's strategic move into Gen Alpha beauty