Nordstrom (NYSE:JWN) reflected the success of its e-commerce channels when it reported a 22 percent increase in Internet sales of Haute Look, Nordstrom.com and mail order in the second quarter.
And while comparable sales at the department store increased by 3.3 percent, consumer interest in promotional stores were even higher, reported Forbes. The Rack increased its sales by 4 percent in the second quarter.
In an effort to beef up its Internet position, Nordstrom acquired Trunk Club in July for $350 million. The men's clothing service is expected to grow sales 150 percent in 2014 and is generating a profit.
The Rack business, coupled with Internet sales, are expected to represent 50 percent of all Nordstrom sales in the next five years, up from 38 percent in 2013.
While some full-line stores may be heading for closure if the Rack and Internet sales become a priority, Nordstrom still has plans to open three full-line stores this year—compared with 27 Rack stores. The company also recently announced it would open six new Canadian stores by 2017.
Similarly, other retailers are feeling the pinch of traditional stores and are thus investing in the Web and e-commerce sales.
Nordstrom realizes that customers need to buy whenever they want, off of any device. This means being available for sale on the Internet, 24/7, while still offering customer service (a point of pride for the department store chain).
-See this Forbes article
-See this Nordstrom earnings release
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