Nordstrom leadership reclaims oversight of struggling Rack business

Nordstrom on Monday announced it is streamlining leadership of its battling Rack small business with that of its comprehensive-line office suppliers, as two executives retire and enterprise veterans reclaim oversight.

Scott Meden, Nordstrom chief advertising and marketing officer, and Geevy S.K. Thomas, Rack president, will both equally be shifting on, the division keep chain reported in a release. Meden has worked for Nordstrom in several roles for 37 a long time, and Thomas for 39, the retailer mentioned.

The company has appointed Ken Worzel, currently chief running officer at Nordstrom, and Jamie Nordstrom, presently president of Nordstrom stores, to recently created roles as chief client officer and chief retailers officer, respectively.

Nordstrom said that by centralizing its buyer tactic under 1 leader and by consolidating the obligation for its brick-and-mortar shops, it will “much better align operational oversight with the company’s Closer to You strategy.”

“This new management structure is reflective of a natural evolution that comes instantly from our target to provide prospects far better across all channels and banners,” reported Nordstrom Main Govt Officer Erik Nordstrom in a statement.

Nordstrom Rack, when a large growth driver for the Nordstrom company, has struggled to increase revenue in the latest months. That’s an difficulty management has attributed, in aspect, to problem securing products thanks to offer chain snafus during the Covid pandemic.

In its fiscal fourth quarter of 2021, Nordstrom documented gross sales at its Rack company had been down 5% on a two-12 months foundation, lagging the functionality of its whole-price tag suppliers. To be certain, that was an advancement from the prior quarter, when Rack product sales fell 8% when compared with 2019 concentrations.

Nordstrom Rack sells modern models from significant brands at lower cost details, competing with chains this sort of as T.J. Maxx, Burlington, Saks off Fifth and Macy’s Backstage.

Nordstrom shares rose practically 3% in afternoon trading Monday, getting climbed about 25% yr to date.

Obtain the complete press launch from Nordstrom in this article.