Dive Brief:
- Nordstrom this month announced the appointment of three off-price retail vets as the company's Rack banner works to create a more efficient and optimized supply chain network, according to a company press release.
- Stacy Lippa was named vice president of Rack supply chain and will focus on driving store growth. Lippa previously worked in distribution and fulfillment at Five Below as well having a 17-year career at Target in imports, transportation and distribution, among other leadership roles.
- The retailer also said Kelley Wotton-Gantner, Nordstrom senior director of merchandising since 2020, will become Rack divisional merchandise manager. The staffing announcements come as Rack focuses on "optimizing our supply chain and inventory flow," CEO Erik Nordstrom said on a Q4 earnings call this month.
Dive Insight:
To accelerate growth at its stumbling Rack banner, Nordstrom is pulling talent with a depth of off-price experience to lead merchandising and supply chain efforts.
In its announcement of the three new hires, Nordstrom emphasized the synergies of its banners by stating how customers shop at both its namesake and Rack brands.
"Many customers are choosing to pick up their Nordstrom.com orders at our Rack locations," the retailer said in a statement. The company said one-third of its next-day Nordstrom online orders were picked up at a Rack location in the most recent quarter.
Nordstrom is tying those efforts to its Closer To You campaign, which it introduced in the fall of 2020, and is referred to as a "brand promise" rather than solely a marketing strategy. It focuses on an integrated approach to bring customers "closer to the things they need and want through convenience and connection" by highlighting services like order pick-up, returns, and tailoring and curated product selection.
During the fourth quarter earnings call earlier this month, Erik Nordstrom addressed the company's missteps at Rack, including problematic changes last year, and rolled out plans for improvements. That includes bringing in additional premium brands, boosting marketing efforts and bolstering leadership.
"To be clear, we are confident in our ability to profitably grow our Rack business and won't be satisfied until we do," he told analysts.
Last December, the company reportedly hired consulting firm AlixPartners to explore possible improvements for its Rack business. Nordstrom did not comment on rumors that could include exploring a Rack spinoff. However, a month earlier Erik Nordstrom did say during the company's Q3 earnings call, "We are not satisfied at all with our Rack business, as clearly our recovery is lagging what we think it should be."
