US-based fashion retailer Nordstrom is set to expand its presence in New York City with the opening of its first department store for women.
The company also announced plans to open two Nordstrom Local neighbourhood hubs in the city in October. This project will mark the largest single-project investment for the retailer.
These assets are expected to drive engagement with customers across multiple touch points and increase sales.
Nordstrom spokeswoman told CNBC that the New York City store will be spread across more than 300,000ft² of space.
The new store will offer ‘high-end apparel and footwear’, and also feature several eateries and coffee bars.
In addition, the company plans to resolve executional issues associated with its enhanced loyalty programme, make investment in its digital marketing; and re-balance its merchandise assortment as per customer expectations.
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The retailer also aims to achieve savings of $150m to $200m this year.
Furthermore, Nordstrom is planning to enhance customer experience by providing greater access to merchandise selection with faster delivery at a lower cost to the company.
The retailer has reported a 3.5% decline in total company net sales for the first quarter ending 4 May this year. However, total company digital sales grew by 7%.
It reported revenues of $3.44bn, $37m in net earnings and gross profit of 33.5%, as a percentage of net sales.
Commenting on its first-quarter results this year, Nordstrom co-president Erik Nordstrom said: “The strength of our inventory and expense execution helped mitigate a meaningful portion of our sales miss.
“We ended the quarter with inventories in solid shape, and our financial position remains strong. We’re actively taking steps to drive our top-line, and we’re focused on delivering on our financial goals.”
The company opened three stores, closed two stores and relocated one store in the first quarter of 2019.