It is becoming the classic retail conundrum: Traditional brick-and-mortar stores must figure out how to leverage their locations, manage rapid e-commerce growth and do it all in a manner that keeps up with the Amazons of the world. Consumers are accustomed to clicking from home and seeing their packages arrive the next day. Retailers need to meet those expectations while keeping their storefronts relevant, all of which puts pressure on back-end, multichannel and omnichannel distribution.
For Nordstrom — long known for its superior customer service — the dilemma of managing its traditional stores, its off-price line of stores, Nordstrom Rack, and its exploding e-commerce business became a challenge that required outside help. The company’s first quarter earnings report showed digital growth at 7%, representing 31% of the overall business.