Glossier's new partnership with Nordstrom proves the luxury department store remains a favorite for e-commerce brands looking to dabble in brick-and-mortar, even as other high-end retailers flounder
- Glossier has opened pop-up shops inside seven Nordstrom locations around the US. The pop-ups will only sell the brand's popular fragrance, Glossier You, Business Insider previously reported.
- Glossier's decision to partner with Nordstrom and enter into the wholesale retail sphere is on trend with other direct-to-consumer brands that have chosen Nordstrom specifically for select product launches.
- Nordstrom's popularity with these e-commerce brand pop-ups proves that many brands still trust the famed department store, even as the retail market at large has become shakier.
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On December 3, Gen Z-beloved beauty brand Glossier announced they would be opening pop-ups in Nordstrom locations in Chicago, Dallas, Houston, Washington, D.C., Santa Anita, California, and New York City, which will be available from December 3 to February 16.
The pop-ups, which will only sell the beauty brand's popular "Glossier You" fragrance, mark the brand's largest retail partnership to date, Business Insider previously reported.
"Fragrance is an extremely personal category - one that people understandably prefer to discover in person," Glossier founder and CEO Emily Weiss told CNBC of the reasoning behind the wholesale partnership. "Department stores are the largest channel for fragrance, making up nearly a quarter of all U.S. fragrance sales."
Glossier's decision to partner with Nordstrom to enter the wholesale retail market is on trend with other e-commerce brands, such as the clothing brands Everlane and Reformation, that have chosen this particular department store to help them establish a presence in the brick-and-mortar sphere.
This trend demonstrates that many direct-to-consumer brands, despite an increasingly rocky retail market, still trust Nordstrom to help them reach new consumers.
E-commerce partnerships reveal a trend
Since 2013, Nordstrom has been an advocate for pop-up shops. That year, the department store launched its "Pop-In@Nordstrom" series, which showcases new pop-ups every four to six weeks. Oftentimes, the pop-ups sell exclusive-to-Nordstrom merchandise, Business of Fashion reported.
Clothing brand Everlane and luxury luggage company Away are two direct-to-consumer brands who have taken advantage of this series, with Everlane opening its first pop-up with Nordstrom in 2017 and once again in 2019, and Away opening its pop-up earlier this year as well. CNBC reported that Nordstrom has also worked with shoe retailers Allbirds and Birdies, jeweler Kendra Scott, and beverage company Dirty Lemon.
A common thread among the e-commerce brands who have partnered with Nordstrom is that their partnerships gave them the ability to connect with shoppers they wouldn't have been able to connect with before.
For example, in 2018, Reformation teamed up with Nordstrom to be sold in store locations across the US and online. Business of Fashion reported that previously, Reformation's website accounted for 80% of the brand's sales, with the rest coming from its flagship locations.
"Our goal is to bring sustainable fashion to everyone," said Yael Aflalo, Reformation founder and CEO. "Our biggest roadblock to retailers is just thinking that we don't want to work with them, because it's just going to be too challenging. With Nordstrom, there's a commitment to both sides to meet in the middle."
Reformation's partnership with Nordstom is similar to the retailer's partnerships with Glossier and Everlane in that, in each instance, it was the brand's first foray into a wholesale retail partnership, proving that not only has Nordstrom found success in getting direct-to-consumer brands to work with them, but they are also successful in convincing first-timers that their department store is the best option for a brick-and-mortar expansion.
"I think there are a number of reasons ... why direct-to-consumer brands would want to do this with Nordstrom," Teri Bariquit, Nordstrom's chief merchandising officer, told CNBC in an interview. "It gives [brands] exposure to customers we might not be getting, and it gives [Nordstrom] exposure."
Many working in the retail and luxury industries have hope for Nordstrom's future
Each Nordstrom pop-up offers a unique and intimate experience for customers looking to connect with their favorite digital brands.
In a statement to Business Insider, insights company Fizziology said that Glossier retail locations garner "excitement," something which is bound to have positive impact on its pop-up at Nordstrom.
"Fans consider visiting the store to be an experience, with many wanting to post themselves in the location or note the environment within the store," Fizziology told Business Insider.
Edge Beauty CEO and founder Steve Mormoris echoed similar sentiments, noting that intimate retail moments such as these are what's popular among shoppers nowadays, and he is keeping them in mind as he plans to expand his e-commerce brand SCENT Beauty into a brick-and-mortar shop.
"People are not finding a deep degree of gratification or satisfaction going into a luxury department store anymore. And why that exactly is, I don't know," Mormoris told Business Insider. "I think a lot of it has do with people looking for physical spaces that make them feel comfortable and [where] there's some degree of intimacy in the shopping process."
These pop-ups with popular brands might offer Nordstrom a way to stay relevant in the years to come. Amazon Prime Wardrobe stylist Alexander Allen told Business Insider that he has confidence the department store will be able to weather the retail storm, even as the famed Barneys is forced to close its doors.
"Everything is basically online," Allen told Business Insider, adding that he believes Nordstrom is a "special" case and that their new seven-story flagship in New York City is a "very smart" move for the retailer.
"[The new Nordstrom] already has captured my attention," he said. "And the fact that I saw the product, and love the product - I'm sold."