Nordstrom opens 7-story store in NYC, banking on brick-and-mortar sales
While more retailers are shutting their doors, luxury retailer Nordstrom opened a massive new store in New York City on Thursday, making a bet that people still prefer stores over online clicks.
Shoppers could not wait to get inside the new Nordstrom when it opened its doors to the new flagship store in Midtown Manhattan. Co-President Pete Nordstrom says it took eight years to go from an idea to launch.
“These things take a long time to plan and execute,” he told CBS News.
The seven-story luxury store features an open floor plan, four full-service restaurants, and a bar. All are aimed at getting shoppers offline and into the store.
Nordstrom says, “The best way to do that frankly is to have this service ethic that is really about inclusivity and welcoming people, making people feel good.”
Nordstrom says his family company still does two-thirds of its sales in stores. But other brick and mortar retailers, including Barneys, are getting clobbered by the internet. In recent years, department store sales dropped almost 50% while online sales went up 300%, according to the U.S. Commerce Department.
Retail analyst Hitha Herzog says Nordstrom “making this move is risky given what the retail landscape looks like.”
She says Nordstrom has done a good job targeting its customers, but she says retailers need to better understand what shoppers want.
“The way the consumer has changed in terms of shopping since the recession in 2008 has been solely focused on less items, less amount of money, more time with the family,” Herzog says.