Nordstrom Acquires Online Retailer

Nordstrom Inc. (Seattle) has entered into an agreement to acquire HauteLook Inc. (Los Angeles), an online retailer that offers sales on designer goods. The company says the purchase will enable Nordstrom to participate in the fast-growing private sale marketplace and provide a platform to better serve customers in all channels.

“While our focus on providing a superior in-store shopping experience is our roots, continuing to find ways to use technology to serve customers the way they want to be served is critical,” says Blake Nordstrom, president, Nordstrom Inc. This partnership gives Nordstrom and HauteLook shared growth opportunities as online shopping evolves.”

Ceo Adam Bernhard will continue to run the web site, which was started more than three years ago. It will operate as an independent, wholly-owned subsidiary, with the brand and website remaining separate from Nordstrom. “By joining forces with Nordstrom, we are giving customers a fuller range of options for the way they shop today,” says Bernhard. “Our established membership base of well over four million shoppers is closely aligned with the Nordstrom customer. We feel fortunate to partner with a company that shares our commitment to providing customers with great brands and an exciting shopping experience.”

Nordstrom will acquire the online site for $180 million in Nordstrom stock with a portion subject to ongoing vesting requirements. The transaction also includes a three-year earn-out of up to $90 million in Nordstrom stock subject to company performance and vesting requirements for the existing management team. The deal is expected to close in the first quarter of 2011.

The company also recently hired a social media master to help lead its efforts. Shauna Causey, who spent eight years at Philadelphia-based Comcast and most recently worked as a consultant with Google, will lead the Seattle-based retailer's social media efforts, including forming the retailer's social media strategy and overseeing a team to manage Nordstrom's Twitter and Facebook accounts.

The specialty department store reported net earnings of $232 million, for the fourth quarter ended January 29, 2011. Same-store sales were up 6.7 percent.