Nordstrom in Learning Mode with Mobile POS Deployment

By Adam Blair
When you roll out 6,000 mobile POS devices to your 200-plus stores, it's much more than a pilot program. Still, executives at Nordstrom say the company is still in a learning mode with its mobile initiative, trying to determine exactly how the devices can best fulfill Nordstrom's key corporate mission: providing superior customer service.

"We're learning a great deal from this technology and its ability to improve the customer experience," said Nordstrom president Blake Nordstrom during a recent conference call discussing its second-quarter financial results. "As we learn more, we're in a good position to accelerate the utilization of these devices and add more if needed."

Nordstrom announced in May that it would provide 6,000 mobile POS devices in time for its July Anniversary sale. The retailer had already prepared for the rollout by installing WiFi coverage in all its full-line stores in a program completed in November 2010.

While Nordstrom executives are providing few specifics about the mobile devices' performance, the overall impression is that it has been positive. "When we first went out with the mobile part our plan was to learn what we felt, long term, was the right mix between mobile and our traditional registers, and I think we still have a little bit of a journey ahead of us to figure that out," said CFO Michael Koppel. "But it's very possible that we would have more devices as time goes on."

The retailer is well aware of the importance of technology to its business, particularly digital commerce. "Clearly, the online channel is a really strong customer acquisition channel for us," said James Nordstrom, EVP and president of Nordstrom Direct, noting that one-third of all new Nordstrom customers come through its website. "Over time, as the online channel becomes a larger portion of overall sales, it will become an even more important customer acquisition channel," he added.

In addition, Nordstrom launched an enhanced mobile website in June "to make it more convenient for customers to shop with us," said Blake Nordstrom. "Ultimately, we want to be where our customers want us to be, and we see some real and tangible opportunities to accelerate our online growth, improve service and attract and retain more customers. Direct is our fast-growing part of the business, which is reflective of how customers increasingly want to shop."

Overall, Nordstrom is reporting strong financial performance. Net sales during Q2, which ended July 30, 2011, were $186 million, up 8.8% over the same period the previous year, and same-store sales climbed 7.9% during the quarter.

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