Nordstrom rack in the center of Seattle
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Nordstrom announced Monday that it is streamlining its struggling rack business leadership with its full-line department stores, as two executives retired and the company’s veterans recover oversight in off-price offshot offshore.
Scott Maiden, RAC’s chief marketing officer, and GV SK Thomas, RAC’s president, will both move forward, the department store chain said in a statement. Maiden has worked in various roles for Nordstrom for 37 years and Thomas has worked for 39 years, the retailer said.
The company has hired Ken Nordstrom, Nordstrom’s current chief operating officer, and Jamie Nordstrom, the current president of the Nordstrom store, in newly created roles as chief customer officer and chief store officer, respectively.
By centralizing its customer strategy under one leader and consolidating its brick-and-mortar stores’ responsibilities, Nordstrom said, it would “better align operational oversight with your strategy to the company.”
“This new leadership structure is a reflection of a natural evolution that comes directly from our focus to better serve customers across all channels and banners,” Nordstrom CEO Eric Nordstrom said in a statement.
Nordstrom Rack, once a major growth driver for the Nordstrom business, has struggled to raise revenue in recent months. This has led to a problem management due to the difficulty in securing goods due to supply chain snaps during the Kovid epidemic.
In the fourth quarter of fiscal 2021, Nordstrom reported that its rack business sales fell 5% on a two-year basis, lagging behind the functionality of its full-value stores. To be sure, this was an improvement from the previous quarter, when rack sales fell 8% compared to the 2019 level.
Nordstrom Rack sells fashionable styles from major brands at low prices, competing with chains such as TJ Max, Burlington, Sex of the Fifth and Massey Backstage.
Nordstrom shares rose about 2% at the start of Monday, up about 25% to date
Find the full press release from Nordstrom here.