Why Nordstrom Is Closing Its Trunk Club Business, Two Years After Shuttering All of Its Stores

Nordstrom is “sunsetting” its Trunk Club business, the personal styling service it acquired in 2014 for $350 million. Now, the retailer said it is “redirecting its resources to the services that its customers value most.” “I want to be clear,” CEO Erik Nordstrom said on Tuesday’s first quarter earnings call. “This move reflects our belief and commitment to styling, and we are dedicated to growing and investing in these services. We have a range of styling services from low-touch outfit inspiration through our digital channels to a high-touch and personalized relationship with a stylist, all of which achieved high customer satisfaction scores. We are directing our investment towards these programs to ensure that we are well positioned to serve customer needs and drive growth.” According to Nordstrom, customers spend 7 times more and report higher levels of satisfaction when engaging with a stylist, either in-store or online. “While we still see the highest number of customers engaged with our in-person styling, we are seeing rapid growth within our digital services,” Nordstrom added. “We continue to leverage data science and advance our digital tools, including virtual Style Boards, to empower our stylists with highly relevant recommendations for their customers.” The announcement came on the same

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