Nordstrom will open 40 mini-tonal stores in its stores from March 2021.
Source: Nordstrom PR
Nordstrom is looking for ways to grow its active business and is adding more goods to its business than clothes, shoes, handbags and makeup.
The company has found a new partner in Tonal, a company that sells a wall-mounted training station for US $ 2,995.
The department store chain announced on Monday that it would add 40 mini-tonal stores to its branches. The rollout begins this month. The 50 square meter stores are located in Nordstrom’s active section alongside workout clothing and other fitness accessories. Customers can demonstrate the Tonal device and speak to a Tonal representative.
For Tonal, the partnership will expand the fitness equipment maker’s reach to new customers at a time when many Americans have been investing in high-tech equipment to improve their home workouts during the pandemic. The company only has 16 stationary locations – six of its own stores and 10 “shop in shops” with other business partners.
In the meantime, Nordstrom hopes to become a top active gear destination and give customers more reasons to visit its stores. Many of them are in shopping malls that were less frequented during the health crisis.
“Ironically or not, fitness at home is becoming an experience getting people out of their homes and into the store,” said Simeon Siegel, an analyst at BMO Capital Markets.
Seattle-based Nordstrom has already announced that it will expand its space for active apparel and wellness products. A dedicated active page was added to the website in December as more people rummaged through yoga mats and sweatpants from home. In addition, over 75 new active brands – specializing in categories such as hiking, tennis and golf – will be added online and in stores this year.
“We continue to place great emphasis on being this place of discovery,” said Lori Marten, merchandise manager in Nordstrom’s active category.
“We are often seen as the partner of choice when it comes to working with brands, both physically and digitally,” she said. “So it was a pretty seamless opportunity across the board – one that really helps us build our authority and authenticity in a space where we are aggressively growing.”
Marten said the talks between Nordstrom and Tonal started in November in the middle of the holiday season and developed quickly. The partnership is a long-term agreement, not a pop-up, she said. In the past, Nordstrom temporarily dedicated its stores to brands such as luggage manufacturer Away and beauty company Glossier to attract younger customers.
The Tonal wall-mounted exercise machine is priced at $ 2,995.
Source: Nordstrom PR
Christopher Stadler, Tonal’s chief marketing officer, said the fitness maker has spoken to other potential retail partners, but Nordstrom is ahead of the game. The typical Nordstrom buyer and Tonal’s target customer are closely related and refer to factors such as age, income and type of employment.
“There is a part of our customer base who wants to touch, feel and experience digital weights,” said Stadler. “We want to create more distribution points and physical contact points.”
Tonal, whose supporters include the Amazon Alexa Fund and NBA star Stephen Curry, fits into a highly competitive home fitness market that also includes other device manufacturers like Peloton, Hydrow, and Mirror. The latter was acquired by Lululemon last year for $ 500 million and is available in several Lululemon stores. Hydrow signed a contract with sportswear brand Fabletics last year to display its rowing machines in several Fabletic stores and on their website.
“This charges Tonal’s physical presence in a month,” said BMO’s Siegel. “And without having to build physical infrastructure.”
Boasting Tonal’s success, Nordstrom says the company will continue to expand its active division and purchase more fitness and outdoor products such as snow helmets, ski goggles, massagers and skipping ropes. Not just clothes and sneakers.
Nordstrom is expected to report its fourth quarter fiscal year results after the market closed on Tuesday. Previously, the company estimated that fiscal 2021 sales will grow more than 25%, as it is a period when brick and mortar stores were closed for two quarters due to Covid restrictions in the spring. Nordstrom also assumes that around half of its sales this year will come from the digital business. In the past year, the department store chain achieved around a third of its online sales.
In the long term, Nordstrom expects sales to grow in the low single-digit range from 2019 onwards. That year, Nordstrom had net sales of $ 15.1 billion, down 2.2% year over year.
Analysts and investors will look for clues as to how demand for apparel is recovering and how comfortable shoppers are in their stores.
Nordstrom shares have remained roughly unchanged over the past 12 months. The retailer has a market cap of $ 5.7 billion, which at $ 8.6 billion is less than Kohl’s. But it’s bigger than Macy’s at $ 4.7 billion.
So far, Nordstrom is planning to open the mini-tonal shops here:
Scottsdale Fashion Square (Scottsdale, AZ)
San Francisco Center (San Francisco, California)
Fashion Island (Newport Beach, CA)
Santa Monica Place (Santa Monica, California)
Thousand Oaks (Thousand Oaks, CA)
Century City (Los Angeles, California)
South Coast Plaza (Costa Mesa, California)
The Americana at Brand (Glendale, CA)
La Jolla at UTC (San Diego, CA)
Broadway Plaza (Walnut Creek, California)
The village at Corte Madera (Corte Madera, CA)
West Farms (Farmington, CT)
The SoNo Collection (Norwalk, CT)
International Plaza (Tampa, FL)
Aventura (Miami, FL)
Boca Raton City Center (Boca Raton, FL)
The shops in Merrick Park (Coral Gables, FL)
The Gardens (Palm Beach Gardens, FL)
Phipps Plaza (Atlanta, GA)
Oakbrook Center (Oak Brook, IL)
Michigan Avenue (Chicago, IL)
Montgomery Mall (Bethesda, MD)
Natick Mall (Natick, MA)
Somerset Collection (Troy, MI)
Mall of America (Minneapolis, MN)
St. Louis Gallery (St. Louis, MO)
The Mall in Short Hills (Short Hills, NJ)
Garden State Plaza (Paramus, NJ)
The Westchester (White Plains, NY)
SouthPark (Charlotte, NC)
Easton Town Center (Columbus, OH)
Washington Square (Tigard, OR)
The plaza at the King of Prussia (King of Prussia, PA)
Northpark (Dallas, TX)
Galleria Dallas (Dallas, TX)
The shops in La Cantera (San Antonio, TX)
Domain Northside (Austin, TX)
Tysons Corner Center (Tysons, VA)
Downtown Seattle (Seattle, WA)