Nordstrom, Inc. (NYSE:JWN) announced that it will be opening a different type of store in West Hollywood next month, one without any inventory. It’s the type of business plan you might expect from Jerry Seinfeld or Nathan Fielder: a clothing store without any clothing. It is following the model we’ve come to see from electronics retailers like Samsung and Apple where you can make an appointment and have consultations with product experts. Except electronics are by nature more complicated than clothes, and might require some hands-on help the way clothing doesn’t.
Nordstrom Local, as it is called, is being marketed as a ‘time-saving option’ which might be most puzzling approach to this strategy. If consumers have to come into the store just to have a consultation about a potential purchase, then make the purchase, and wait for delivery, then the shopping experience has gotten a lot more complicated and a lot more time consuming.
If it was mainly an option for picking up orders then it might have some merit, but to create a 3,000 square foot space for ‘consultations’ and as a social hangout is an interesting strategy to say the least. In addition to having a coffee or an alcoholic beverage, customers will also be able to get manicures as well.
Nordstrom saw just 3% sales growth in its last quarter and in its last fiscal year saw sales increase just 2%, so I can understand the motivation to try something new and think outside of the box. However, I am skeptical about how well this will work and I think unless Nordstrom is going to expand into the salon business, then they will be back at the drawing board after this one.
