Nordstrom stock falls after inventory-free store plan

ALEXANDRA STRATTON

Nordstrom Inc.’s plan to open a smaller store concept with no inventory isn’t sitting well with investors.

The shares suffered their worst decline in more than a month after the departmentstore chain announced the new “neighborhood-hub” shop, which will open on Oct. 3 in West Hollywood, Calif. The idea is to let customers try on clothing and accessories with the help of a personal stylist. If shoppers like what they see, they can order the goods and have them delivered.

The move embraces a model used by upstarts such as Warby Parker and Bonobos, which generally rely on ecommerce but have boutiques where customers can touch and feel the wares. Smaller shops in urban areas also are less reliant on shopping-mall traffic to fuel sales.

But Nordstrom is an upscale chain known for its selection and service, so the minimalist approach was puzzling to investors. On a day when shares of most major retailers were climbing, Nordstrom fell as much as 5.4 percent to $43.59. The stock had been down 3.8 percent this year through the end of last week.

The new store, called Nordstrom Local, will encompass one styling suite, eight dressing rooms and a central meeting space where customers can talk to personal stylists. Services at the location include on-site alterations and tailoring, same-day delivery and manicure services. Customers can even have a glass of wine or beer.

“We know there are more and more demands on a customer’s time and we wanted to offer our best services in a convenient location,” Shea Jensen, Nordstrom’s senior vice president of customer experience, said in a statement. “Finding new ways to engage with customers on their terms is more important to us now than ever.”

While the West Hollywood shop won’t have inventory onsite, the stylists will be able to transfer merchandise in for customers from other Los Angeles-area Nordstrom stores, according to Anya Pavlovic, a spokesman for the retailer. She also said that there are no plans to open similar shops at this time.