Nordstrom reported a same-store sales increase of 7.9% over the same period the year prior in the fiscal third quarter of 2011, boosted by its digital channels. In a call discussing results with financial analysts, the retailer said that it will continue to invest in delivering a positive customer experience through online and mobile technology, stating that the majority of its sales growth over the next 10 years will be online.
"This marked the eighth straight quarter of positive same-store sales with our online increase significantly outperforming other businesses," says Blake W. Nordstrom, president of Nordstrom. "We are now in a juncture where we can build upon our position of strength in our stores by adding better capabilities and making more investments in e-commerce and technology to enhance the customer experience."
In Q3, Nordstrom reported a 20% increase in direct sales over the same period the previous year. This increase was in part driven by the introduction of free shipping and returns on its website early in the month of September, which received positive initial results from customers.
"Our customers' response to the launch of free shipping and free returns online was encouraging, resulting in a meaningful increase in Nordstrom Direct sales," says Michael Koppel, CEO of Nordstrom.
Running with the momentum from the sales boost that free shipping and returns resulted in, Nordstrom said it will continue to invest in online initiatives. Seeing online as the future of its business, the retailer plans to focus on improving the multi-channel customer experience.
"We launched free shipping and free returns […] because we have big ambitions for the growth of our online business," says James F. Nordstrom, president of Nordstrom Direct. "We believe that the majority of the growth of our categories over the next 10 years will be online as opposed to in-store. And so we feel we need to be investing in the customer experience and be more competitive and be more relevant to customers online."
Blake Nordstrom continued: "Our hope is to become more responsive to how our customers want to shop with us, whether it's free shipping and free returns online, mobile POS devices in our stores, the upcoming rollout of our Nordstrom app, online search or improvements to our online and mobile websites.
"We believe our ability to offer a compelling shopping experience in all channels is what the customer values, and we're optimistic about our prospects to achieve sustainable and profitable growth over the long run."