Merchant Innovation

Nordstrom Hits Online Sales Plateau

Nordstrom's Online Slump

Anyone who has really tried to get themselves in shape has heard of the plateau - it's that phase when your current exercises just don't seem to be working as much as they used to, and even though you're sticking to a schedule, you're not getting any stronger. Oddly enough, that's where Nordstrom finds itself in regards to its online sales growth.

The Motley Fool has a breakdown of the roller coaster ride Nordstrom's eCommerce sales have ridden since the early 2000s, when online generated just 5 percent of sales, to 2015, which brought in 20 percent. However, the brand's full-price online sales have slowed in recent years, with its discount eCommerce sales actually losing money. Case in point of the plateau: despite increasing 19.8 percent in 2015, Nordstrom's full-priced online products fell to just 3.1 percent last quarter.

The retailer has begun culling the less profitable items from its online catalog, though that may be contributing to the decline in growth, too. Whatever the cause, it's having a considerable effect on Nordstrom's plans going forward - plans to build a $170-million fulfillment center in California, the brand's largest market, have been tabled until it sees measured improvement to its omnicommerce futures, and without adequate support (i.e. a new fulfillment center), Nordstrom finds itself stuck in a Catch-22 of modern retail.

——————————

LIVE PYMNTS TV OCTOBER SERIES: POWERING THE DIGITAL SHIFT – B2B PAYMENTS 2021 

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border.

Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

Click to comment

TRENDING RIGHT NOW