A strategic shake-up hopeful to reignite Nordstrom’s momentum
In the world of TikTok Shop, fast fashion, and Amazon Prime Day, the in-person shopping experience has taken a substantial hit. This visible shift is reflected in the closing of beloved storefronts across the country. Can newly named Chief Financial Officer of Nordstrom, Kelly Dilts, step in to change the narrative?
Dilts will be leaving her role as CFO at Dollar General to take on the same position at Nordstrom. At Dollar General, she previously served as Senior Vice President of Finance from 2019 until April 2023, when she was promoted to CFO. Prior to that, she was CFO of Francesca’s from 2016 to 2019, previously holding various senior financial leadership roles at Men’s Wearhouse for the first 18 years of her career. Dilts brings a wealth of experience in financial leadership and has worked across both discount and specialty retail sectors.
According to Dollar General’s FY2024 report, under Dilts’ leadership, net sales rose 5%, increasing from $38.76 billion in 2023 to $40.66 billion in 2024. This momentum was seen in Q1 2024, with sales growing 6.1%. However, these gains came alongside a decline in profitability: the gross profit margin (GPM) fell by 70 basis points to 29.6%, and a notable drop was seen in net income going from $1.66 billion in 2023 to $1.1 billion in 2024, marking a 32% decrease.
While many brick-and-mortar retailers, including Dollar General, have recently faced store closures and profit declines, much of Dollar General’s downturn can be attributed to markdowns, inventory damage, and a shift toward consumables, issues that are less prominent at Nordstrom. Despite these challenges, Dilts delivered strong sales and implemented strategic changes in a volatile market, moves that signal promise for her future at Nordstrom.
In 2024, Dilts oversaw the removal of self-checkouts from over 12,000 Dollar General stores to regain control over shrink and losses–an assertive and impactful decision. She also increased the number of store remodels from 1,500 to 1,600 by reallocating capital originally intended for new openings, demonstrating a focus on improving existing infrastructure over expansion. This mindset and leadership approach could prove valuable for Nordstrom’s growth and revitalization.
With years of financial leadership and extensive retail experience, it will be exciting to see what Kelly Dilts brings to the table at Nordstrom.