Nordstrom made a bold move this week by acquiring a minority stake in supply chain software firm DS Co. The platform provides a cloud-based service that will make it easier for suppliers to directly ship orders placed through Nordstrom’s retail partners — i.e., drop shipping. For example, if a customer purchases a shirt from Nordstrom’s website, the order will be routed to the manufacturer, which would then ship the item from its warehouse to the buyer's door. The Wall Street Journal reports the acquisition could be due to the luxury retailer’s effort to fulfill a growing number of online orders without sacrificing profits.
Total Retail's Take: Nordstrom’s announcement comes at a time when traditional brick-and-mortar retailers are competing with e-commerce companies, such as Amazon, which provide convenience and speedy delivery while keeping costs down. Recently, retailers have been putting more pressure on suppliers to help with some of the costs as prices increase for keeping an omnichannel presence. The acquisition seems to be a smart one Nordstrom's part. Hopefully it will stop the brand's downward trend.