Monday, 27th February 2006 (4511 views)

Upscale US department store chain Nordstrom saw 2005 sales leap 8.3 per cent to $7.7 billion, indicating that the luxury goods market is in rude health.

Same-store sales growth hit an impressive six per cent, trouncing market expectations.

Recent figures from the World Gold Council show that demand for jewellery is still running at healthy levels, although Nordstrom pinpointed accessories, cosmetics and shoes as the real sales drivers in 2005.

The retailer ended the year on a high as well, as sales for the final quarter – which ended on January 28th – powered up 9.3 per cent to $2.3 billion.

Although Nordstrom said it was able to achieve growth by implementing regular price cuts, the bottom line also impressed as net profits jumped 36 per cent to $190 million.

The retailer plans to push further into its own designer business in the future, as well as focusing more on women's apparel.

Gold jewellery and luxury goods fans in Boston are cheering the recent announcement that Nordstrom plans to open four stores in the Walking City by 2010.

 

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