Nordstrom Integrates Trunk Club's Operations, Cuts Jobs
Trunk Club will close down its Goose Island, Ill., distribution center and work more closely with its parent company, Nordstrom, cutting 250 jobs in the process, the retailers said in a news release Tuesday. Trunk Club, which was acquired by Nordstrom in 2014, will begin shifting order fulfillment and distribution operations currently handled at its Goose Island facility to Nordstrom's network at the end of the year.
Total Retail's Take: It was only a matter of time before Nordstrom began rolling up Trunk Club's operations into its own national network. It didn't make financial sense to operate a separate distribution center for Trunk Club, a fairly small part of Nordstrom's business, when the retailer already has the infrastructure for a national distribution network. Unfortunately, 250 workers lost their jobs in the process. Consider that the ugly side of retail consolidation.
Joe Keenan is the executive editor of Total Retail. Joe has more than 10 years experience covering the retail industry, and enjoys profiling innovative companies and people in the space.