These days, indoor shopping malls across America often resemble ghost towns more than bustling centers of commerce. Between the shuttered storefronts marred by cage-like coverings and gaping holes in food courts, malls can just seem sad.
Malls used to be the heart of retail, but the pandemic meant fewer people were out and about. And it’s expensive to run a brick-and-mortar operation. Without foot traffic, it’s tough to make a profit.
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E-commerce requires much less manpower, and warehouse space is undoubtedly cheaper than prime real estate.
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That’s one reason e-commerce has grown every year since 2000. Way back then, e-commerce accounted for 1.7% of U.S. retail sales. By the year 2024, that number had leapt to 22.7%, according to Digital Commerce 360. It’s no surprise that between 2019 and 2020 — the prime pandemic era — the percentage jumped from 15% to 20%, the steepest increase in 25 years.
Nordstrom will offer cosmedical treatments in stores.
Image source: Getty Images
Specialty retailers looking for ways to stand out
One brand that seems to be weathering the chaos is Nordstrom. The retailer is known for strong merchandising and unparalleled customer service.
Decades ago, Nordstrom was also known for permitting a practice that other department stores didn’t: allowing customers to help themselves to makeup.
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Shoppers could try on lipstick and eyeshadow, blush and mascara, without having to ask a clerk for help. Today, this is how many stores operate, including Sephora, Ulta, and Blumercury. But back then it was novel.
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Nordstrom is continuing to innovate. Its latest experiment is meant to make it a literal one-stop shop for beauty.
Nordstrom to offer aesthetic treatments
Nordstrom is proving to be one of the more resilient high-end retailers. In recent years, competitors like Barneys New York, Marshall Field’s, and Lord & Taylor have gone under. Other competitors like Macy’s, Saks Fifth Avenue, and Bloomingdale’s have closed underperforming locations.
Nordstrom is a survivor. The company had robust 2024 holiday sales, and the company recently said it is motivated to revitalize both Nordstrom and Nordstrom Rack through merchandise introductions and service improvements.
One of its latest moves is to partner with SkinSpirit, a medspa brand that has 50 locations across the country.
SkinSpirit will offer Nordstrom customers customized medical-grade treatment in the store, including Botox Cosmetic, dermal fillers, facials, and other cosmedical services.
In order to survive, retailers must adapt and devise ways to offer experiences beyond just a try-on and purchase. Partnerships like the one between Nordstrom and SkinSpirit are likely to become more common.
The medspa offerings are available now at Nordstrom’s 57th street location in New York. Nordstrom Oakbrook Center near Chicago will be the next location to offer SkinSpirit services.
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