Nordstrom 2Q17 Earnings Call Notes

Erik B. Nordstrom – Nordstrom, Inc.

60% of online returns come back into the store

Sure, Adrienne. This is Erik. Our online return rate, we don’t break out specifically. It’s come down a bit in the last – it’s been over a year now that we’ve made some progress there. But it’s high. Our online business’ a high return rate. We get over – for full-price, over 60% of our online purchase returns do come to stores. For off-price, it’s over 80%, which is a real positive for us. It’s an example we use a lot internally, especially on full-price, because it is free for customers to mail back their returns, yet over 60% of our customers choose to do their returns in a store. And it’s because that’s what they want to do. It’s good for the customer, and by the way, it’s good for us. It’s more economical for us to take a return that way, and also, as you can imagine, having a customer in the store is beneficial.

And we really don’t focus on trying to turn around that return and make it fail immediately with it. What we’ve learned is a customer comes with a return, that’s their errand they have to do, and the more efficient, the faster we are in doing that, the more free time we’re giving back to the customer. And oftentimes, they take that free time and start shopping. So we’re really looking to take care of the customer on their terms, and if they have a great experience in our store with a return, we certainly believe that ends up in good news for us.