The Nordstroms invest big in omnichannel and technology, but they’re not taking their eyes of the brick-and-mortar side off the business.
At the Seattle flagship, “We are spending $80 million to redo the whole store,” Blake Nordstrom, co-president of the corporation, said at the annual meeting of shareholders on Tuesday. “It will be done a year from now.”
The investment in brick-and-mortar in Canada is also significant, bringing expectations for significant volume in the future. “We think Canada represents a $1 billion opportunity,” Nordstrom said.
Nordstrom Inc.’s third store in Canada opens in Vancouver on Sept. 18. “Over time, it could be one of our best stores,” Nordstrom said. “We have committed to six,” in Canada. “We will open two stores in 2016 in Toronto and a third Toronto store in 2017.”
Nordstrom’s two Canada stores are in the Chinook Centre in Calgary and Rideau Centre in Ottawa.
Nordstrom plans its first full-line store in Manhattan in the fall of 2018, at 225 West 57th Street, between Broadway and Seventh Avenue, in the Columbus Circle area. The unit will have 315,000 square feet on seven floors. “Manhattan is a big bet,” Nordstrom said. “We are working hard on those plans to ensure it’s not only the best Nordstrom store, but a world-class destination. If we do it right, we have a chance to do a lot of business.”
While there has been talk of building a hotel and an athletic club above Nordstrom on the site, the plan now is that everything above the store will be high-end residential condominiums, Nordstrom said. The building will be the second-highest building in the city, next to the Freedom Tower in the World Trade Center.
Nordstrom Rack continues its aggressive expansion. The off-price chain opened a record 27 locations last year and plans to open another 27 this year, with the 11th set for Thursday. “We believe we can have 300 Racks by 2020, inclusive of opening Racks in Canada,” Nordstrom said. Fifteen to 20 Nordstrom Racks are seen operating in Canada, with the first units getting launched in 2017.
E-commerce grew 21 percent to $2 billion in sales last year. Full-line stores accounted for $7.7 billion in sales and were down 0.5 percent, while Nordstrom Rack accounted for $3.2 billion in sales and saw a 3.8 percent comp gain.
The $13.1 billion Nordstrom issues its first-quarter results on May 14. “The first quarter was a solid quarter for the company — on plan and on-trend,” Nordstrom said.
As reported Tuesday, the company named Blake Nordstrom, Pete Nordstrom and Erik Nordstrom co-presidents, in changes supporting its team approach to managing the business. Officials said the changes in titles were in step with Nordstrom’s multichannel approach to serving customers, though responsibilities of the three Nordstrom brothers remain unchanged. Founded in 1901 as a shoe store in Seattle where the company is still based, the retailer operates 118 Nordstrom stores, 177 Nordstrom Racks, two Jeffrey boutiques, one clearance store, nordstrom.com, nordstromrack.com, HauteLook and Trunk Club.