Nordstrom leadership reclaims oversight of struggling Rack business as executives retire

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Nordstrom Rack in downtown Seattle

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Nordstrom on Monday announced it is streamlining leadership of its struggling Rack business with that of its full-line department stores, as two executives retire and company veterans reclaim oversight.

Scott Meden, Nordstrom chief marketing officer, and Geevy S.K. Thomas, Rack president, will both be moving on, the department store chain said in a release. Meden has worked for Nordstrom in various roles for 37 years, and Thomas for 39, the retailer said.

The company has appointed Ken Worzel, current chief operating officer at Nordstrom, and Jamie Nordstrom, current president of Nordstrom stores, to newly created roles as chief customer officer and chief stores officer, respectively.

Nordstrom said that by centralizing its customer strategy under one leader and by consolidating the responsibility for its brick-and-mortar stores, it will “better align operational oversight with the company’s Closer to You strategy.”

“This new leadership structure is reflective of a natural evolution that comes directly from our focus to serve customers better across all channels and banners,” said Nordstrom Chief Executive Officer Erik Nordstrom, in a statement.

Nordstrom Rack, once a big growth driver for the Nordstrom business, has struggled to boost revenue in recent months. That’s an issue management has attributed, in part, to difficulty securing merchandise due to supply chain snafus during the Covid pandemic.

In its fiscal fourth quarter of 2021, Nordstrom reported sales at its Rack business were down 5% on a two-year basis, lagging the performance of its full-price stores. To be sure, that was an improvement from the prior quarter, when Rack sales fell 8% compared with 2019 levels.

Nordstrom Rack sells fashionable styles from major brands at lower price points, competing with chains such as TJ Maxx, Burlington, Saks off Fifth and Macy’s Backstage.

Nordstrom shares rose roughly 2% in early trading Monday, having climbed about 25% year to date.

Find the full press release from Nordstrom here.



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