Nordstrom Holiday Sales Stumble But Digital Shines

With the COVID-19 pandemic continuing to trouble consumers, Nordstrom has announced that sales slid 22% for the nine-week 2020 holiday period ended January 2 versus the comparable period a year earlier.

Nordstrom maintained that the combined November and December sales were in line with company expectations for a decrease in the low 20%, range for the fourth quarter. Sales trends increased sequentially by about 500 basis points relative to the third quarter after adjusting for the shift of the Nordstrom Anniversary Sale from the second quarter to the third quarter in fiscal 2020, the company added.

Digital sales grew 23% over last year and represented 54% of total Nordstrom sales compared with 34% during the comparable period a year earlier, the company reported. The company added that consumers picked up 11% of Nordstrom.com orders in-store, which accelerated to more than 20% during the week preceding Christmas. Consumers picked 9% of Nordstromrack.com orders in stores, enabled by the integration of Nordstrom Rack store and online inventory in October. Nordstrom and Nordstrom Rack stores fulfilled more than 30% of online orders .

As a result of an expanded selection, gifting items made up 67% of sales, an increase of 600 basis points from the prior year, Nordstrom noted.

“We’re encouraged by the increasing momentum throughout and following the holiday season as we continue to unlock new ways to better serve customers on their terms with greater convenience and connection. By leveraging order pickup and store fulfillment capabilities across our two brands of Nordstrom and Nordstrom Rack, we’re seeing benefits to our customers as well as to our business,” said Erik Nordstrom, the company’s CEO said in announcing the financial results.