During its investors day conference on Thursday, Nordstrom executives shared plans for profitable growth that are partly an expansion of its existing strategy and partly a remarkable departure from how it has historically done business. Most notable is the integration of its off-price Rack with its full-line business, along with an embrace of e-commerce that leaves physical locations — usually the centerpiece for any department store — in a supporting role.
“At the heart of our business transformation is the recognition that the unique combination of the Nordstrom and Nordstrom Rack brands, along with our combined physical and digital expertise, create a powerful opportunity to get closer to the customer than ever before,” CEO Erik Nordstrom said via video conference.
In financial terms, the goals are to accelerate revenue growth, “with opportunity to reach $17 billion in sales over the medium term;” expand profit margin, with the “potential to sustain 6% or higher EBIT margin going forward; improve return on investment through shifts in inventory and assortment management; and “consistently generate more than $1 billion in operating cash flow annually.”
Source: Retail Dive