A Cause For Fear At Norfolk Nordstrom
David Haar is frightened about Nordstrom.
The Virginia Beach resident began procuring at the venerable division store when it opened in the 1980s in Tysons Corner – Nordstrom’s first location on the East Coast. Its choice of men’s footwear to fit his massive ft (he wears a 15) and legendary customer support saved him coming again through the years.
However at MacArthur Heart in downtown Norfolk, Haar has watched Nordstrom scale back its inventory and take away top designers reminiscent of Salvatore Ferragamo footwear, St. John women’s sportswear and Burberry handbags. Information stories he found on the internet indicated that Nordstrom likes to renovate stores more than 12 years outdated and, in the past two years, has closed locations that lacked the sales to support an improve.
The native Nordstrom, now nearly 15 years previous, has by no means undergone a transform. Haar, forty one, fears the store’s efficiency is not up to snuff.
“It is vital, not only for the well being of downtown Norfolk and for the mall’s well being,” he informed me, contending that Nordstrom’s success bolsters economic development across the area.
Haar might have cause for concern. Nordstrom gross sales at MacArthur Middle slipped final 12 months to $25.9 million, down from $26.1 million in 2011, based on figures the retailer supplies to the Norfolk Redevelopment and Housing Authority, which holds the lease on its store.
From a peak of $32.9 million in 2007, gross sales have dropped 21 p.c. At about $162 per square foot, the native store’s gross sales are about a third of the chain’s common of $470 per sq. foot in 2012.
Nordstrom officials, who cheapest price for ferragamo belt will not discuss particular store efficiency, said the Norfolk location is assembly the retailer’s expectations. “We have no plans to shut,” insisted Brooke White, a Nordstrom spokeswoman at its headquarters in Seattle.
The chain doesn’t maintain a strict store renovation schedule however tends to remodel every 10 to 20 years, she said. No overhaul for the Norfolk retailer is on the books presently, White added.
The 160,000-square-foot Nordstrom opened in March 1999 because the crown jewel of MacArthur Heart. After a long courtship, metropolis officials scored a dedication from the retailer with a sweet deal: They agreed to borrow virtually $33 million to build the division retailer, while Nordstrom pays just $200,000 a year in rent till the shop reaches annual gross sales of $40 million, when it begins to pay an additional share of gross sales. The retailer signed a 20-12 months lease and agreed to open no other shops in southeastern Virginia.
City leaders justified their generosity with projections that Nordstrom’s sales would attain $60 million, providing a significant enhance to tax revenue.
But the truth that the store’s gross sales still hover beneath half of that amount does not essentially imply it is failing. Nordstrom nonetheless may become profitable in Norfolk if its local costs are low.
“I am positive they’d appreciate larger gross sales,” stated H. Blount Hunter, a nationwide retail and actual estate marketing consultant based mostly in Norfolk.
Nordstrom has tailored the store, although, to mirror its assessment of the region’s shoppers, he stated. It has a smaller department for males’s suits because “we’re not a dressy-for-work market.” It carries fewer expensive designer manufacturers as a result of fewer native clients purchase them.
“I do not see the store with the quality of merchandise in it that you simply see at a Nordstrom retailer where they know they’re going to promote by means of it,” Hunter stated.
Retailers have different levels of shops, he said, generally characterizing them as A, B or C. The letter grades correspond to merchandise quality, inside embellishments, service extras and brand luxuriousness.
“Tysons Corner is an A,” while the Nordstrom in Norfolk isn’t, Hunter mentioned. He declined to present his grade for the native retailer.
Nordstrom uses no such grading system, White stated, but units up and stocks its shops to address the tastes and needs of each market, tweaking the weather as essential. “That’s really a mirrored image of what customers are asking for,” she mentioned of the merchandise mix in Norfolk.
“We don’t view that as a much less-than store,” she said. “We would like it to be group-primarily based. We expect that is what makes us successful.”
If Nordstrom has downshifted the Norfolk store to satisfy the preferences of local customers, that may simply show the required technique for the shop to survive. Larger-end Nordstrom customers who miss the better brands can nonetheless buy them on the retailer’s webpage with free shipping and the convenience of returning them to the downtown retailer if they change their minds.
Even Haar, who would like to see the return of his Ferragamo shoes, would quite see Nordstrom stay in Norfolk than close because it stocked too many merchandise it couldn’t promote, he acknowledged.
As a Nordstrom fan myself, I agree. Irrespective of the level of Nordstrom we now have, I recognize that now we have one. Hampton Roads nonetheless awaits coveted retailers that some smaller areas have, reminiscent of Anthropologie and Crate & Barrel, however it is not in total retail isolation.