What: Nordstrom is optimizing its supply chain as one of three priorities outlined in its “Closer to You” strategy to improve financial performance.

Why it is important: After its Q4 net sales fell 4.1% year over year, Nordstrom is hoping to improve its customer experience, increase sell-through and reduce markdowns by placing the right assortment with the right depth closer to the customer.

The US-based retailer has connected the company’s store and supply chain inventory in individual markets to increase product availability while reducing shipping speeds and allowing customers to receive orders in a variety of locations.

Its second priority is to increase inventory productivity after weathering issues related to stock levels, receipt flows, and more.

The company's third priority is improving Nordstrom Rack’s performance as its sales declined 8.1% year over year in Q4.

Supply chain optimization is a top priority for Nordstrom this year