Tuesday, June 2, 2020

The pandemic has forced Nordstrom to invest more in its off-price e-commerce business

Modern Retail
Off-price retailers have historically ignored e-commerce. The coronavirus crisis, however, has highlighted the shortcomings of that approach.

Nordstrom has been slow to invest in the e-commerce side of its off-price Nordstrom Rack business, as by and large most of the chain’s sales still come from its physical stores. Last year, $1 billion of Nordstrom Rack’s nearly $5.2 billion in revenue came from online. And other off-price competitors like TJX Inc. and Burlington Stores have reported that just a small percentage of its sales have come from e-commerce. Burlington, in fact, announced in March that it would shutter its e-commerce business, which accounted for just 0.9% of sales. But that proved to be a big mistake when stores were ordered shut later in March and April.. . . more