nordstrom-opens-service-hub-in-newport-beach-with-another-planned-for-manhattan-beach

In an effort to be closer to customers and better serve them on their own terms, Nordstrom has opened a service hub in Newport Beach with another planned for Manhattan Beach.

The luxury retailer’s service hubs offer a variety of services for shoppers, including contactless curbside pickup, returns, clothing alterations, styling tips, gift wrapping, recycling of empty beauty packaging and clothing donation drop-offs.

The locations

  • Nordstrom Local Newport Beach: The 1,193-square-foot location at 2043 Westcliff Drive, Suite 103, is already open
  • Nordstrom Local Manhattan Beach: The 1,886-square-foot location at 451 Manhattan Beach Blvd. will open in the coming months
The gift wrap section of Nordstrom Local Newport Beach is seen here. The service hub offers a variety of services, including contactless curbside pickup, returns, clothing alterations and gift wrapping. (Photo courtesy of Nordstrom Inc.)

Company spokeswoman Caroline Mattingly said Southern California is one of the Seattle-based retailer’s largest markets, with 14 full-line stores and 30 Rack stores. The new service hubs will complement three others in the Melrose, Brentwood and downtown areas of Los Angeles, bringing the Southland total to five.

There are also Nordstrom Locals in New York City on the Upper East Side and in the West Village.

“The addition of these locations supports our strategy in our top markets to provide customers with greater merchandise selection and faster delivery anywhere they choose while increasing convenience and driving engagement through our services,” Mattingly said via email.

Customer perks

Customers who utilize Nordstrom Local outlets spend up to two and a half times more on merchandise by accessing the additional services, according to Ken Worzel, the company’s chief operating officer.

Nordstrom card members in Southern California are eligible for free, two-day delivery. Later this year they’ll be able to pick up their  NordstromRack.com and HauteLook.com orders at their nearest Nordstrom or Nordstrom Local locations.

Rack and HauteLook are part of the company’s off-price division, which offers product discounts of up to 70%.

Losses tied to COVID-19

Nordstrom’s net sales for its second quarter ended Aug. 1 fell 53% from a year earlier as a result of temporary store closures during the COVID-19 pandemic, and the company reported a net loss of $255 million for the quarter. That included after-tax COVID-related charges of $14 million.

“At the onset of the pandemic, we focused on protecting and enhancing liquidity, and we successfully executed on these plans,” CEO Erik Nordstrom told investors during a recent conference call. “We are now pivoting to prioritize market share gains and profitable growth as we advance our strategies.”

Nordstrom reported second-quarter operating cash flow of more than $185 million. That exceeded company expectations and enabled it to pay down $300 million on its revolving line of credit. Nordstrom ended the second quarter with $1.3 billion in total liquidity, including $1 billion in cash.

Pete Nordstrom, president and chief brand officer, said the upscale clothing retailer expects to improve sales trends in the second half of the year and beyond.

“Our inventories are current and in-line, and we’re focused on amplifying relevant categories, brands and trends to meet customers’ changing preferences,” he said.

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By Arlene Huff

Arlene Huff is the founding member of Golden State Online. Before that She was a general assignment reporter. A native Californian, she graduated from the University of California with a degree in medical anthropology and global health. She currently lives in Los Angeles.

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