Nordstrom invests in software company

Nordstrom (NYSE:JWN) may be consolidating its technology team, but that doesn't mean the company is dialing back efforts to support and grow digital operations.

The department store chain has acquired a minority stake in Utah-based DS Co., a supply-chain software company that provides a cloud-based service called Dsco that facilitates routing orders to suppliers for drop shipping to the customer.

It's one way Nordstrom hopes to rein in costs and provide more robust fulfillment for online orders.

DS Co. software pulls data from both the retailer and vendors to not only fill orders but also to track traffic surges and declining inventory.

The amount of Nordstrom's investment was not disclosed, but Dsco's founder Jeremy Hanks said the funds would be used to expand the company's technology team and develop more advanced data analytics.

In March, Nordstrom said it was reducing its in-house technology team and laying off roughly 120 people as part of planned spending cuts after a series of disappointing quarters.

Look for more investment from Nordstrom in companies like Dsco, according to Hanks.

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