Trunk Club, which is owned by Nordstrom Inc., will close its Club fulfillment center on Goose Island, in Chicago, affecting 250 full- and part-time employees.
The Goose Island facility will close by August 2017, and its operations will be integrated into Nordstrom’s network of fulfillment and distribution centers.
“As Trunk Club has grown significantly over the past several years, we’re continuing to find opportunities to support that growth while also giving our customers the best experience possible,” said Brian Spaly, chief executive officer of Trunk Club. “While our space at Goose Island has served us well, we realize we’re going to outgrow it soon. We decided this was the right time to integrate Trunk Club orders into the Nordstrom fulfillment network, which will allow us to share more of their inventory and better serve our customers with a wider mix of merchandise.”
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Nordstrom said it will help employees interested in staying with the company find roles at the Trunk Club Chicago clubhouse or at nearby Nordstrom and Nordstrom Rack stores.
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“It will take us some time to transition our operations and ensure we’re taking care of impacted employees, so we wanted to let our people know as soon as we could,” said Spaly. “We still have a lot of customers to serve here, and we’ll be working with each of our employees over the coming months to share more details about our staffing changes and to discuss their individual opportunities.”
Nordstrom has three fulfillment centers — in Elizabethtown, Pa.; San Bernardino, Calif., and Cedar Rapids, Iowa. The Cedar Rapids facility currently fulfills all orders for Trunk Club for Women, which launched last fall. Integrating the rest of the Trunk Club business into the Nordstrom network will begin at the end of 2016.
This year, Nordstrom executives cited a noticeable change in the retailer’s business model, with greater focus on lowering costs, including moderating increases in tech spending and other areas, and after years of investing heavily to aggressively grow the business.
Trunk Club is headquartered in downtown Chicago and serves customers both online and through its five clubhouses, in Chicago, Dallas, Washington, D.C., Los Angeles and New York. Nordstrom acquired Trunk Club in 2014.