Members of Nordstrom’s popular Nordy Club have accumulated so many loyalty points and redeemed so many rewards that it's impacting the clothing retailer’s bottom line.
The Seattle-based merchant reported on May 30 a worse-than-expected loss in part because Nordstrom credit card-holders cashed in on more reward perks than the company anticipated. Nordstrom posted a $39 million first-quarter net loss and a 2.25% dip in gross profit to 31.6% in part because of the points-redemption boom. Supply chain theft and increased inventory ahead of the company’s July anniversary sale also contributed to the loss.
