Nordstrom Earns Top Ranking in Top 100 Omnichannel Retailers Report

Nordstrom has long been recognized in the retail industry as an innovator and trailblazer, bringing new ideas and formats to market in an effort to best meet the needs of its customers. That reputation now extends to omnichannel services and experiences. The upscale department store chain earned the No. 1 spot in Total Retail's sixth annual Top 100 Omnichannel Retailers report.

The report features a ranking of 100 leading retailers and brands based on the omnichannel capabilities across their organizations (e.g., supply chain, pricing, loyalty, payments), and the execution of those programs. Total Retail visited each retailer’s website as well as one of its brick-and-mortar stores, judging them on eight criteria. (For more on the methodology related to the rankings, check out this Editor's Note announcing the release of the Top 100 Omnichannel Retailers report.) Nordstrom earned all of the points available in this year’s assessment, offering frictionless cross-channel shopping experiences.

To help bridge the gap between online (web, app, social) and offline shopping channels, Nordstrom has opened small-format “Local” stores which provide convenient services for shoppers in New York City and Los Angeles. The Nordstrom Local stores serve as hubs for online order pickup and returns, express alterations, free styling help, among other offerings.

A commitment to service is the foundation Nordstrom is building on as it introduces convenience and true connection for its customers across all touchpoints with the retailer. The retailer’s digital-first platform enables it to serve customers when, where and how they want to shop — whether that’s in-store at more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations or digitally through its Nordstrom and Rack websites.

That omnichannel approach is paying dividends for Nordstrom. Consumers that engage across the Nordstrom banner, the Rack banner, online and in-store spend 12x more than single-channel customers. This isn't a phenomenon that's exclusive to Nordstrom. Omnichannel shoppers are overwhelmingly retailers' most loyal — and profitable — customers.

“Our focus on serving the customer through our interconnected model with Nordstrom and Nordstrom Rack, a scaled digital platform and a strong store fleet positioned us to capitalize on demand from customers,” said Erik Nordstrom, CEO of Nordstrom, Inc., in a press release announcing the company’s 2022 Q1 earnings.

As for its strategy going forward, Nordstrom is prioritizing technology investments in supply chain and merchandising capabilities that are at the core of its omnichannel strategy. These include further improvements to its buy online, pick up in-store (BOPIS) and curbside pickup programs, which have proven to be exceedingly popular among Nordstrom’s customers — and profitable for the retailer. In fact, the click-and-collect channel is the most profitable touchpoint for Nordstrom, according to Erik Nordstrom.

You can download the 2022 Top 100 Omnichannel Retailers report here to see the full rankings as well as profiles of the top performers. In addition, there's valuable trend information extracted from this year's data.