39% of total Nordstrom sales were digital in the retailer’s first fiscal quarter, which ended April 30, 2022. Digital sales were flat compared with the same period in fiscal 2021, as customers increasingly opted to shop in-store.
Nordstrom reported $20 million in first-quarter net earnings. The company’s net sales increased 18.7% versus the same period in fiscal 2021, exceeding pre-pandemic sales levels, the company said. And gross merchandise value (GMV) increased 19.6%. During the quarter, Nordstrom-banner (which excludes Nordstrom Rack) net sales increased 23.5% and GMV increased 24.8%.
Men’s and women’s apparel, shoes and designer apparel had the strongest growth against 2021, the company shared in its press release. The company attributed that growth to customers refreshing their wardrobes for occasions such as social events, travel and return to offices.
The average ticket at Nordstrom is $242, according to the Top 1000 Database. The Digital Commerce 360 database sorts online retailers in order by web sales. Nordstrom ranks No. 20.
Omnichannel effectiveness
CEO Erik Nordstrom said he has seen additional pickup options’ power, according to a transcript from SeekingAlpha of the quarterly earnings call.
“Customers clearly value our interconnected model, with order pickup comprising 10% of Nordstrom.com demand this quarter,” he said. That’s a 2% increase versus the prior year.
He attributed success to buy online, pick up in store (BOPIS) and the company’s styling program.
“Buy online, pick up in store also remains our most profitable customer journey and one of our highest satisfaction customer experiences,” he said. “Our styling program also continues to be a powerful engagement driver as we deliver convenience and build deeper customer connections through our Closer to You strategy.”
The company offers styling services that include low-touch outfit inspiration through digital channels and high-touch and personalized relationships with stylists, Erik Nordstrom said.
“Customers spend seven times more and report higher levels of satisfaction when engaging with a stylist, either in-store or online,” he said. “While we still see the highest number of customers engaged with our in-person styling, we are seeing rapid growth within our digital services.”
Anne Bramman, the retailer’s chief financial officer, said she expects to see stores continue to be a bigger growth driver in 2022.
“But digital, in general, is a very important part of our business,” Bramman said. “And quite frankly, we’re pretty agnostic [about] how a customer shops just as long as it’s a great experience for them.”
Partnerships
President and Chief Brand Officer Pete Nordstrom said shoe sales had double-digit growth with increased demand across formal, casual and athletic styles. He added that alternative partnership models represented 12% of the company’s GMV in Q1.
“We’re also excited about our new brand launches,” Pete Nordstrom said. “In the second quarter, we are launching Allbirds, a compelling fashion forward sustainable shoe brand. Nordstrom will be one of Allbirds’ few key retail partners.”
He said Nordstrom will offer men’s and women’s Allbirds styles in select stores, beginning June 1. In addition, he said the company also plans to add those styles on Nordstrom.com later in the summer.
The company also opened the first ASOS co-branded physical retail location, Pete Nordstrom said. The new store at The Grove in Los Angeles is specifically designed to engage young adult customers, he said.
Nordstrom Rack
Nordstrom Rack sales grew 10% versus last year, Erik Nordstrom said. Increased store traffic, improved conversion and better in-stock levels guided that growth, he said. He added that the company increased its supply of premium brands and adjusted its assortment to better align with customer needs. He said that helped balance price points.
For the fiscal first quarter ended April 30, 2022, Nordstrom reported:
- Net sales increased almost 18.7% to $3.47 billion. Net sales were about $2.9 in the comparable quarter last year. GMV increased 19.6% compared with the same period in fiscal 2021.
- For the Nordstrom banner specifically, net sales increased 23.5%, exceeding pre-pandemic levels. GMV increased 24.8% compared with the same period in fiscal 2021.
- For the Nordstrom Rack banner, net sales increased 10.3% to about $1.18 million. That’s compared with about $1.07 million during the same period in fiscal 2021.
- Digital sales represented 39% of total sales during the quarter.
Percentage changes may not align exactly with dollar figures due to rounding.
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