In a bid to better serve customers amid this ongoing pandemic and the upcoming holiday season, Nordstrom, Inc. (JWN - Free Report) is expanding pick-up services for stores and online orders to its Rack stores. Customers shopping from Nordstrom.com, NordstromRack.com and HauteLook.com will now be able collect their orders from Rack stores. This move will help the company offer more and improved products along with faster and convenient delivery options. Apart from these, customers will be able to pick-up their orders placed at U.S. NordstromRack.com and HauteLook.com from the nearest Nordstrom and Nordstrom Local stores by late 2020. These endeavors are likely to improve customers’ shopping experiences in these trying times and also aid the top line during the upcoming holiday season and beyond.
What Else You Should Know?
Nordstrom’s digital sales increased nearly 20% in the fiscal second quarter, excluding the Anniversary Sale event shift impact. Moreover, digital sales accounted for 61% of the company’s business, up from 30% in the year-ago quarter. The company’s e-commerce business witnessed more than 50% growth in new customers in the said quarter. Also, online traffic grew in double digits year over year, reflecting sequential improvement, driven by surging customer demand.
Further, the company remains focused on boosting relevant categories, brands and trends to meet customers’ changing preferences. Also, it is optimistic about its inventory levels, which are current and on-trend. Management expects to deliver improved sales trends in the second half of fiscal 2020 and beyond.
Moreover, Nordstrom is on track with technology advancement initiatives in the e-commerce and digital platform, enhancing its supply-chain channels and marketing efforts. Earlier, the company partnered with Tompkins Robotics and Attabotics to streamline its supply-chain operations across the United States.
However, continued impacts of the COVID-19 and the related rise in costs have been weighing on its margins. Nonetheless, we hope the expansion of delivery services will offer customers a hassle-free shopping experience, which should help this Zacks Rank #4 (Sell) stock gain momentum. In the past three months, the stock has declined 10.7% against the industry’s growth of 35%.
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Hibbett Sports (HIBB - Free Report) has an expected long-term earnings growth rate of 13.8% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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The Michaels Companies (MIK - Free Report) , a Zacks Rank #2 (Buy) stock, has an expected long-term earnings growth rate of 1.3%.
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