Nordstrom shares 2021 outlook, eyes off-price strategy
The retailer said it expects revenue to rise more than 25 percent in fiscal 2021 from the prior year, with digital representing approximately half of total sales. Likewise, it also anticipates earnings before interest and taxes to be positive in fiscal 2021.
Long term, the Seattle-based retailer plans to grow its revenue in the low-single digits from the 2019 level on an annual basis.
Next month, it will announce its fourth quarter results, where it expects sales to fall in the low 20 percent range.
Still to get there, the retailer continues to attempt to streamline its business with a new strategy proposing a central growth focus on the Nordstrom Rack division. The retailer has faced years of sales declines, which has been further impacted by the Covid-19 pandemic.
"We have a unique business model with two powerful brands, highly integrated digital and physical assets, incredible brand partners and employees who are truly unmatched when it comes to their commitment to the customer," said Erik Nordstrom, chief executive officer of Nordstrom, Inc.
"Looking ahead, we are building on the strengths of our market strategy to fully unlock the potential of the digital-first platform we have built to better serve customers, gain market share and drive profitable growth.”
The strategy will be centred around its 20 top markets that represent approximately 75 percent of sales, with Nordstrom Rack stores and further distribution capabilities.
Next, it will focus on growing its digital business for its main and other markets, which it believes it can maintain, representing approximately half of total sales going forward.
To do so, it said it will “unlock the full potential of its digital-first platform, with a focus on gaining deeper insights, acquiring new customers, offering more choices, and delivering better service”.
Nordstrom currently operates 358 stores in the U.S. and Canada, including 100 Nordstrom stores; 249 Nordstrom Rack stores; two clearance stores; and seven Nordstrom Local service hubs.
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