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Will Nordstrom's Rewards Program Extension Woo Customers?
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Staying in line with its focus on enhancing customers’ experience, Nordstrom, Inc. (JWN - Free Report) revealed plans to extend its existing Canadian loyalty program, by offering consumers additional means to gain points and other advantages, on purchases. Incidentally, shoppers in Canada can now apply for “Nordstrom Rewards Visa” credit cards, which will allow them to gain points on all purchases.
Nordstrom partnered with MBNA (a unit of The Toronto-Dominion Bank), which will provide these reward credit cards. MBNA is a leading name in Canada, that offers co-branded and affinity credit cards across the country. By partnering with Nordstrom, MBNA will help the company provide customers the lucrative rewards program option, which is also likely to attract more shoppers.
Delving deeper, this rewards program will earn users points not only at all Nordstrom locations, but also at other locations where the Visa credit card is accepted. Further, the customers will be rewarded with “Nordstrom Notes” on collection of significant points which can be used in any Nordstrom store in Canada. Also, these loyalty card holders will enjoy several advantages associated with Bonus Point Events, the company’s Anniversary Sale and Holiday events.
We note that Nordstrom’s loyalty program is not new as the company has progressed very well with it. Evidently, as of first-quarter fiscal 2017, Nordstrom had over 8.6 million active Rewards customers across the U.S. and Canada, reflecting a 70% improvement. Moreover, sales from these customers formed roughly 47% of first-quarter sales, marking an improvement from 39% in the year-ago period.
Clearly, this speaks volumes about Nordstrom’s commitment toward enhancing consumers’ experience, which in turn helps it augment its top line. To improve customers’ experience further, Nordstrom also announced plans to enhance its point-of-sale (POS) system earlier this year – by collaborating with Infor Rhythm for Commerce (a cloud based POS that forms part of Infor).
Infor Rhythm for Commerce interconnects back office systems with e-commerce platforms. Leveraging its facilities, store associates can utilize product and inventory information, which will help them locate and order the appropriate products seamlessly across the supply chain on any device. Thus, partnership with Infor will provide Nordstrom the tools to enhance its accuracy and consistency across different locations, alongside helping it to manage and track information better. Further, the upgrade to this innovative POS will enrich Nordstrom’s reach and in turn improve customer experience.
Driven by such endeavors and a solid earnings history, this Zacks Rank #3 (Hold) stock has gained 13.4% over the past one year, outperforming the Zacks categorized Retail – Apparel/Shoe industry’s fall of 3.9%. So, we believe that the aforementioned loyalty program expansion should further boost Nordstrom’s top-line, which in turn will support its overall performance.
Big 5 Sporting has a long-term earnings growth rate of 12%. Further, the stock has a superb earnings surprise history.
Best Buy, with a long-term earnings growth rate of 10.8%, has posted an average beat of 27.7% in the past four quarters.
Children's Place, with a long-term earnings growth rate of 8%, has an average beat of 39% in the past four quarters.
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Will Nordstrom's Rewards Program Extension Woo Customers?
Staying in line with its focus on enhancing customers’ experience, Nordstrom, Inc. (JWN - Free Report) revealed plans to extend its existing Canadian loyalty program, by offering consumers additional means to gain points and other advantages, on purchases. Incidentally, shoppers in Canada can now apply for “Nordstrom Rewards Visa” credit cards, which will allow them to gain points on all purchases.
Nordstrom partnered with MBNA (a unit of The Toronto-Dominion Bank), which will provide these reward credit cards. MBNA is a leading name in Canada, that offers co-branded and affinity credit cards across the country. By partnering with Nordstrom, MBNA will help the company provide customers the lucrative rewards program option, which is also likely to attract more shoppers.
Delving deeper, this rewards program will earn users points not only at all Nordstrom locations, but also at other locations where the Visa credit card is accepted. Further, the customers will be rewarded with “Nordstrom Notes” on collection of significant points which can be used in any Nordstrom store in Canada. Also, these loyalty card holders will enjoy several advantages associated with Bonus Point Events, the company’s Anniversary Sale and Holiday events.
We note that Nordstrom’s loyalty program is not new as the company has progressed very well with it. Evidently, as of first-quarter fiscal 2017, Nordstrom had over 8.6 million active Rewards customers across the U.S. and Canada, reflecting a 70% improvement. Moreover, sales from these customers formed roughly 47% of first-quarter sales, marking an improvement from 39% in the year-ago period.
Clearly, this speaks volumes about Nordstrom’s commitment toward enhancing consumers’ experience, which in turn helps it augment its top line. To improve customers’ experience further, Nordstrom also announced plans to enhance its point-of-sale (POS) system earlier this year – by collaborating with Infor Rhythm for Commerce (a cloud based POS that forms part of Infor).
Infor Rhythm for Commerce interconnects back office systems with e-commerce platforms. Leveraging its facilities, store associates can utilize product and inventory information, which will help them locate and order the appropriate products seamlessly across the supply chain on any device. Thus, partnership with Infor will provide Nordstrom the tools to enhance its accuracy and consistency across different locations, alongside helping it to manage and track information better. Further, the upgrade to this innovative POS will enrich Nordstrom’s reach and in turn improve customer experience.
Driven by such endeavors and a solid earnings history, this Zacks Rank #3 (Hold) stock has gained 13.4% over the past one year, outperforming the Zacks categorized Retail – Apparel/Shoe industry’s fall of 3.9%. So, we believe that the aforementioned loyalty program expansion should further boost Nordstrom’s top-line, which in turn will support its overall performance.
Meanwhile, investors can count on better-ranked stocks in the retail space that include Big 5 Sporting Goods Corporation (BGFV - Free Report) with a Zacks Rank #1 (Strong Buy); Best Buy Co., Inc. (BBY - Free Report) and The Children's Place, Inc. (PLCE - Free Report) – each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Big 5 Sporting has a long-term earnings growth rate of 12%. Further, the stock has a superb earnings surprise history.
Best Buy, with a long-term earnings growth rate of 10.8%, has posted an average beat of 27.7% in the past four quarters.
Children's Place, with a long-term earnings growth rate of 8%, has an average beat of 39% in the past four quarters.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>