Nordstrom Expands Its Inventory-Free Retail Strategy

Jamie Grill-Goodman
Editor in Chief
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The new hubs will be located in The Greenwich Lane property in the West Village and on the Upper East Side.

Nordstrom plans to open two new Nordstrom Local service hubs in NYC this fall. The inventory-free stores offer services such as online order pickup, alterations, styling and more, tailored to reflect the unique needs of local customers.

The department store retailer first introduced the concept in Los Angeles, CA , less than two years ago and says customers who visit Nordstrom Local spend two and a half times more on average.

“In large cities like LA and New York, speed and convenience are critical to a positive shopping experience,” a Nordstrom spokesperson tells RIS. “As the retail landscape continues to evolve at an unprecedented pace, the one thing we know that remains constant is that customers continue to value great service and convenience, and finding new ways to engage with customers on their terms is more important to us now than ever.”

The new hubs will be located at 13 7th Ave in The Greenwich Lane property in the West Village and at 1273 3rd Avenue on the Upper East Side. The West Village Nordstrom Local will be approximately 2,400 square feet, while the Upper East Side location will be just under 2,000 square feet.

“When it came to each of our Nordstrom Local locations in Los Angeles, we designed them to reflect the personality of the specific neighborhood they are in and have services that meet the needs of the customers within that particular neighborhood,” the spokesperson continues. “We are taking a similar approach for our Nordstrom Locals in the West Village and Upper East Side.”

To help further customize the NYC service hubs to best serve local customers, Nordstrom will partner with customers in each neighborhood to understand what they would value most when Nordstrom Local opens its doors. These customers will play a critical role ahead of the opening in determining some of the services that will be offered in each location to help better ensure the service hubs will offer the conveniences customers desire.

"We first introduced Nordstrom Local to customers in Los Angeles with the goal of better serving them on their own terms," says Shea Jensen, senior vice president of customer experience, in a press release. "We've learned a lot and we're really excited to apply those learnings in New York, working closely with those customers to understand their needs. We know our local market strategy is driving outsized market share gains in LA and increased product selection, delivery speed and convenience for those customers.”

All Nordstrom Locals feature flexible models and floor plans that are adaptable to the changing need of the customers they are servicing. Events for Nordy Club loyalty members and the public will also be a key component in the NYC locations, focusing on building relationships with customers and businesses located in the neighborhood.

In Los Angeles, Nordstrom Local has seen a demand for next day pickup services, with 30% of all customer next day pickups in the market being done in the three Nordstrom Local locations. Customers tend to be younger and shop more frequently than customers not utilizing the neighborhood service hubs.

“We look forward to seeing how our New York customers engage with Nordstrom Local when we open in the fall,” the spokesperson says.