Seattle-based department store retailer Nordstrom is aiming to boost annual revenue from $13 billion to $20 billion by 2020, largely through an investment in e-commerce.
The company already has a tight e-commerce game and recently announced Q4 results that credit much in sales and growth to online activity.
The retailer will open a distribution center catering solely to online orders and fostering faster delivery, will bring more items available online (especially at off-price Nordstromrack.com), will employ stores for logistics like returns, expand its loyalty program, and boost technology in stores.
Some 18% of Nordstrom’s sales come from e-commerce, and the department store retailer is betting that could grow quite a bit bigger. The company says its efforts along these lines will cost it $1.2 billion this year and another $4.3 billion in coming years.
The investment in a new distribution center will help Nordstrom with its e-commerce efforts, possibly speeding up order fulfillment in the process. With more retailers offering faster and cheaper shipping, it seems that customers will come to expect a smooth delivery process when placing their e-commerce orders.