Dive Brief:
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Earlier this month, Nordstrom reported net Q2 sales increased 6.2% to $3.30 billion compared to $3.10 billion last year. Total Q2 same-store sales for the second quarter rose 3.3%.
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Meanwhile, Q2 sales from Nordstrom Rewards members increased 11%, and were 44% of total sales; in Q2 2013 those loyalty sales accounted for 42% of total sales.
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Nordstrom also added 370,000 new member accounts in Q2, an 18% increase over last year.
Dive Insight:
Done right, rewards programs are an excellent way to boost loyalty, and, as these results show, sales. That nearly half of Nordstrom's sales come from its members is a testament to the design of its program.The department store is famous for its top-notch customer service, so it’s no surprise that its loyalty-program members are especially pleased.
Nordstrom also recently announced its acquisition of Trunk Club, a personal shopping service for men, for a reported $350 million. With that kind of personalized experience added to its arsenal, Nordstrom is poised to improve on an already outstanding loyalty program and stellar customer-service record.