Nordstrom

Still scarred from last year's shipping disasters — customers not receiving their orders (i.e., gifts) before Christmas despite being guaranteed they would at the time of purchase — online retailers are taking a more cautious approach to holiday shipments this year. Staples, Macy's, Gap, Pottery Barn, Kohl's and Nordstrom were just some of the brands that broke their Christmas delivery promises last year when carriers UPS and FedEx were overwhelmed with last-minute orders. It seems retailers have learned their lesson and are preparing to avoid a repeat of last year.

When you think of an e-commerce powerhouse, you probably wouldn't guess a 113-year-old retailer is at the forefront. But that's exactly where luxury retail chain Nordstrom is. Founded in 1901 as a simple shoe store, Nordstrom is transforming itself once again to expand beyond its brick-and-mortar origins. The company is embracing e-commerce and the strategy is paying off — and investors are taking notice. Nordstrom's stock has soared nearly 20 percent in the past year, outperforming the S&P 500 and its retail peers.

With the ubiquitous internet and the rise of pop-up shops, retailing is becoming more democratic — anytime, anywhere. Add the rise of seasonal markets, shop-in-shops and kiosks, and you have more signs of a growing thirst for innovative product, a trend driven by the lack of creativity due to consolidation at larger stores. The situation presents new opportunities for partnerships in independent retail, especially for high-traffic hotels. Any physical location can be transformed into a marketplace for other retailers and new brands.

Nordstrom recognizes that a single picture speaks over a thousand words. In partnership with Twilio, a software and cloud-based communications company, Nordstrom employees can now send real-time photos of trending pieces and attire to customers through MMS messaging with their standard 10-digit business phone number. Before the launch, businesses sent multimedia messaging (MMS) communications mainly with a 5-digit number — a short code developed for mass messaging and marketing. This process proved to be an inconvenience for companies as it's expensive, costing over $10,000 per year to maintain, and takes months to install. 

Three retailers have been named "geniuses," and it may not be who you expected (well, at least one of the companies). L2, a business benchmarking service, awarded Nordstrom, Macy's and Sears "genius status," the highest honor of a five-tiered ranking system in its recent Digital IQ Index: Department Stores. Macy's and Nordstrom have been ranked highly in the past, however, I have to admit, I was surprised to see ailing retailer Sears join them at the top of the list. Over the last few months, we've heard reports of Sears closing multiple storefronts as well as management issues. Just this past week it was reported that the company probably won't last past the 2016 fiscal year. So how did Sears earn the title of "genius"?

Attention fashion lovers: It just got easier to shop on Instagram. Both Nordstrom and Target are teaming up with Curalate, a visual marketing and analytics firm, to launch Like2Buy, a platform that seamlessly allows Instagram users to make purchases when they see an item they like on their feeds. The concept is dangerously easy: By clicking on the retailers’ profile pages, users can bring up a gallery of shoppable Instagram photos, and click through to go directly to the retailer's website. There, they can read product reviews and make a purchase through the retailer's secure page.

With the ice bucket challenge craze currently sweeping the nation, and in its wake raising awareness and lots of money for ALS research, I thought it would be a good time to address the growing role charity is occupying in the retail industry. Nordstrom is the latest retailer to make charity of key component of its business, announcing last week the launch of a private-label brand, Treasure&Bond, which will give 5 percent of its earnings to Girls Inc. and other nonprofits that seek to empower women and young girls.

In the days since Nordstrom officially confirmed its acquisition of Trunk Club, I've had a surprising number of people ask me if I think the deal "makes sense." Many of them, even if willing to acknowledge the synergies between the two companies, balk at the reported $350 million price. The skeptic's case goes as follows: Trunk Club is hardly a novel or proprietary concept and Nordstrom could easily duplicate the experience using its own brand and infrastructure. Moreover, the men's apparel category is far smaller than the women's and doesn't merit such a big bet. 

Target announced today that its second quarter earnings will include a $148 million charge related to losses stemming from a data breach that occurred during last year's holiday shopping season. It also warned that its profit for that period would be softer than expected. During the fourth quarter of 2013, Target experienced a data breach in which an intruder gained unauthorized access to its network and stole payment card and other guest information. More than 110 million consumers were affected.

"Guys hate shopping," said Brian Spaly, the chief executive of Trunk Club, a shopping website for men, "but love to look good." As retailers have come up with new ways to target men, Nordstrom has been riding the wave. It plans to announce on Thursday that it's agreed to purchase Trunk Club, a five-year old website that sells about 100 brands of men's apparel, for an undisclosed amount. It's the latest sign that men aren't the only ones taking their sartorial habits seriously.