• by Sarah Mahoney  @mahoney_sarah, November 10, 2017

Looks like Nordstrom, which just posted some worrisome quarterly results, is still finding new ways to stay ahead of the e-commerce tsunami stifling so many brick-and-mortar chains: It’s offering 24-hour curbside pickup at 10 of its busiest stores.

Both its sales, which increased 2% to $3.5 billion for the third quarter, and its net earnings, which came in at $114 million, compared with a $10 million loss in the same period a year ago, were better than industry observers projected. And online sales gained 14%. But total comparable-store sales fell 0.9%, including a 1.9% decline in the Nordstrom brand. Even more troublesome is that same-store sales gains at its Rack division, which has been driving much of the company’s growth, fell 5% and the company conceded that it had been too aggressive in its earlier sales plan.

The Seattle-based retailer is continually looking for new ways to maximize its omnichannel offerings, and says that Nordstrom Local, the test retail concept it’s experimenting with in West Hollywood, has generated thousands of customer interactions in the first four weeks.

And it announced it will provide curbside delivery service during the Christmas crunch, beginning on Dec. 16 and running through Dec. 24. Shoppers can choose that option when shopping online, and alert the store for pickup when they are 10 minutes. They can also use text-messaging to ask that the item be gift-wrapped.

“Customers increasingly want to shop where, how and when they choose, and 24/7 Curbside Pickup is one service we’re offering to support their experience,” says Shea Jensen, senior vice president of Customer Experience at Nordstrom, in its announcement. 

Paul Trussell, who follows retailers for Deutsche Bank, rates Nordstrom as a hold, and writes that he “remains cautious, given worsening retail margin compression.” As a result, he is lowering his financial projections for the full year. “We continue to believe that Nordstrom’s business model is unique to department stores,” he writes, with its more upscale target market and limited reliance on promotions and markdowns, as well as its multi-channel approach. “Equally important, it remains ahead of the curve on both inventory and Internet technology investment, which has historically translated into better comparable sales performance versus its peers.” But he says Deutsche remains on the sidelines, cognizant of risks that include “a high-end consumer slowdown, fashion missteps, and continued elevated investment in growth initiatives.”