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article imageWhy has Nordstrom exceeded earnings expectations? Special

By Tim Sandle     Nov 24, 2019 in Business
Nordstrom’s success building customer experiences across its many channels is the reason why the firm has exceeded the earnings expectations of most stock market analysts, says Darin Archer, Chief Strategy Officer at Elastic Path.
At the close of November 2019, Nordstrom Inc. reported better-than-expected quarterly results. Following the announcement shares rallied in extended trading (climbing 10 percent). The Seattle-based company stated it achieved fiscal third-quarter earnings of $126 million, or 81 cents per share.
In addition, the department store operator posted revenue of $3.67 billion in the period, also exceeding Street forecasts. Key to the growth, as CNBC reports, was Digital sales increased to 34 percent of the company total sales from 31 percent in the same quarter last year.
To understand more, Digital Journal caught up with Darin Archer, Chief Strategy Officer at Elastic Path. Archer has assessed company’s physical retail, merchandising and e-commerce strategies and how the company is working to create seamless shopping experiences across new digital and physical channels.
Archer notes how stores which are more associated with bricks and mortar can compete in the digital age: "Some might balk at opening a giant flagship store during the current retail climate, but Nordstrom has done a lot of things right with its store planning and merchandising that should set the company up for success if it’s able to effectively execute on its strategy."
He notes that one aspect is to go local: "As Nordstrom opens more merchandising-free Local stores, the company has an opportunity to create high-touch customer experiences. They can also more effectively cater to consumer desires for convenience with things like buy-online-pick-up-in-store without maintaining a network of expensive, large-format stores."
Another key aspect is the multi-channel experience: "The company has emphasized creating a seamless experience for consumers across all these store formats and online touchpoints."
With a strong digital strategy, Archer sees the future as bright for Nordstrom: "By continuing to innovate and create experiences that engage customers across these channels and throughout the buyer journey, I think they’ll continue to see success."
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