Nordstrom Expands Across Channels

SEATTLE-Coming off strong gains in 2006, Nordstrom is continuing to invest in systems and expanding its call center to promote multichannel retailing, executives said at its fourth-quarter conference call.

The company will open three full-line stores this year, in Denver; Natick, MA; and Novi, MI. A Nordstrom Rack unit will open in Tukwila, WA. The company also is expanding its call center and fulfillment center in Cedar Rapids, IA.

“We’re uniquely positioned with our customer to serve them in the manner they want,” said Blake Nordstrom, president of Nordstrom Inc.

For the fourth quarter, total sales increased 14.6 percent, to $2.6 billion. Same-store sales increased 8.3 percent. The fourth quarter of 2006 contained one extra week compared with the same quarter in 2005. However, the 53rd week is not included in same-store sales calculations. Net earnings were $232.3 million, up from $190.4 million the previous year.

For 2006, total sales were $8.6 billion, up 10.8% from the previous year. Again, 2006 was a 53-week year, compared with 52 weeks in 2005. Same-store sales increased 7.5%. Net earnings increased 23% to $678 million.

Nordstrom currently operates 155 stores (98 full-line stores, 50 Nordstrom Racks, four Faconnable boutiques, one freestanding shoe store and two clearance stores) in 27 US states, and 36 Faconnable boutiques in Europe.