In an effort to turnaround its performance and bring the company back to growth trajectory, Nordstrom Inc. JWN is focusing on its omni-channel efforts. In line with this, the company has recently invested in Shoes of Prey.
Sources revealed that Shoes of Prey is a startup company which allows customers to design and personalize their shoes. Here, customers have the flexibility to choose from hundreds of combinations of style, heel height, material, color, size and width.
We note that Nordstrom already entered into a partnership with Shoes of Prey earlier this year. Six Nordstrom stores currently house collections from the abovementioned startup. Together with this, Nordstrom’s website has a dedicated section for Shoes of Prey.
Now, Nordstrom is pumping more money into this startup as part of a $15.5 million series of funding for Shoes of Prey. Apart from Nordstrom, BlueSky Venture Capital, Greycroft, and Khosla Ventures have also invested in the startup, which brings Shoes of Prey's total funding to $24.6 million.
Founded in 2009, Shoes of Prey was initially based in Australia. It later moved its headquarters to Santa Monica, CA. Since its establishment, the company has registered significant growth in its business and has sold more than five million customized shoes.
Now that Shoes of Prey has acquired added capital, the startup will use this funding to boost its efforts and expand into new categories like women's handbags.
Taking cue from customer demand and sales trends, Nordstrom aims to expand further. The company intends to remain in sync with the evolving retail industry, which is focused on offering maximum choice to customers.
We believe that the recent endeavor strategically fits Nordstrom’s business model. It not only enhances the company’s capability of serving women customers but also expands its online shoe services for women.
Zacks Rank
Nordstrom currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the same industry include Abercrombie & Fitch Co. ANF, American Eagle Outfitters Inc. AEO and Express Inc. EXPR. While Abercrombie & Fitch and American Eagle Outfitters carry a Zacks Rank #1 (Strong Buy), Express Inc. holds a Zacks Rank #2 (Buy).
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