Nordstrom (NYSE:JWN) is growing Trunk Club by shuttering the fulfillment center serving its operations.
The Trunk Club fulfillment center in Chicago will close, and operations will be integrated into the Nordstrom network of fulfillment and distribution centers in the United States.
"As Trunk Club has grown significantly over the past several years, we're continuing to find opportunities to support that growth while also giving our customers the best experience possible," said Brian Spaly, CEO of Trunk Club. "While our space at Goose Island has served us well, we realize we're going to outgrow it soon. We decided this was the right time to integrate Trunk Club orders into the Nordstrom fulfillment network, which will allow us to share more of their inventory and better serve our customers with a wider mix of merchandise."
Nordstrom has three fulfillment centers, located in Elizabethtown, Pennsylvania; San Bernardino, California; and in Cedar Rapids, Iowa. The Cedar Rapids facility currently fulfills all orders for Trunk Club for Women, which launched last fall.
Integrating the rest of the Trunk Club business into the Nordstrom network will begin at the end of 2016. Trunk Club will remain headquartered in Chicago.
Nordstrom acquired Trunk Club in 2014 for $350 million. At the time, Trunk Club was an online personalized shopping experience for men. Stylists helped members find clothing which was then shipped to the shopper's home. There is no subscription fee for the service and members only pay for items they wish to keep.
Trunk club now serves women as well and is a part of Nordstrom's efforts to expand online offerings and integrate channels.
But Nordstrom is also integrating operations as online sales have stalled and the upscale department store chain, much like its closest competitors, is suffering from declining sales and slowing digital gains.
- see this Nordstrom press release