Nordstrom Slides After Announcing Plans of a Smaller Store Concept With No Merchandise

  • Chain plans to open new shop in West Hollywood next month
  • Nordstrom Local to offer services but won’t keep wares on hand

Nordstrom Local in Los Angeles.

Source: PRNewsfoto/Nordstrom

Nordstrom Inc.’s plan to open a smaller store concept with no inventory isn’t sitting well with investors.

The shares suffered their worst decline in more than a month after the department-store chain announced the new “neighborhood-hub” shop, which will open on Oct. 3Bloomberg Terminal in West Hollywood, California. The idea is to let customers try on clothing and accessories with the help of a personal stylist. If shoppers like what they see, they can order the goods and have them delivered.