Nordstrom’s Erik Nordstrom: Barron’s Top CEOs 2022

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A darling stock,

Nordstrom

isn’t. Hardly any of the roughly 20 analysts who cover it recommend buying the shares. The century-old retailer is perhaps best known for department stores with courteous salespeople, but the pandemic accelerated the shift toward shopping online, where discounts and fast, free delivery are the new service-with-a-smile.

Nordstrom is rapidly adjusting, however, under fourth-generation CEO Erik Nordstrom, 58. He shared the top spot with his brothers until Blake died in 2019 and Pete became chief brand officer in 2020. During the pandemic, Nordstrom closed 16 full-price stores, leaving the strongest 100 or so, plus about 250 Nordstrom Rack discount stores. These are being updated to handle fast online-order pickups and returns, plus alterations in some locations. The company has been partnering with online clothing brands, too. Last year, it bought a minority stake in

ASOS
,
whose Topshop brand is popular with 20-somethings. In June, it began selling a thriving eco-friendly sneaker brand called

Allbirds
.

The result hasn’t been

Amazon

-like growth, but Nordstrom has bounced back to prepandemic sales levels. Margins are up, and investments in online order fulfillment are getting results. Average shipping times have dropped by a day. The number of items available for next-day pickup has quadrupled.

At a time when many department-store chains that bear the founder’s name have gone the way of Wannamaker’s, Nordstrom has been defying the naysayers.

Write to Jack Hough at [email protected]