Nordstrom Is Ditching The Traditional Shopping Concept
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Nordstrom is focusing on personalizing the shopping experience, but not with inventory.
The luxury department store chain will be opening a concept store called Nordstrom Local in Los Angeles next month, and customers should not expect to do any traditional shopping there, the Washington Post reports.
The 3K SF space is significantly smaller than its average 140K SF store, but what it lacks in size, it will make up for in services, including personal stylists, manicurists, a tailor and wine.
There will be no clothes, shoes or accessories available to purchase. Instead the retailer will have a limited inventory in stock for shoppers to view and try on. Nordstrom Local will serve primarily as a place for consumers to interact with employees who will help them choose outfits for different occasions such as vacations or job interviews, pick up online orders and drop off returns.
This pivot toward the experiential does not mean the company is getting rid of its brick-and-mortar stores. Its seven-level Central Park Tower flagship store is set to open in 2019.
Nordstrom shares rose 5% Wednesday morning after it was announced that the family is close to securing a deal with private equity firm Leonard Green & Partners to take the department store private. The Nordstrom family has been considering taking the chain private for several months now amid industry challenges that have caused Macy’s, JC Penney and Sears to announce store closures.
According to CNBC, Leonard Green would help fund the deal with approximately $1B in equity.