The deal is sealed.
Fashion retailer Nordstrom Inc. has agreed to acquire Trunk Club, a personalized clothing service for men, for an undisclosed amount. Trunk Club is a Chicago based company that was founded in 2009 by its current CEO Brian Spaly. The company has shown a significant growth in its business and expects revenue for 2014 to cross the $100 million mark.
The company offers a subscription-based service. After signing up, men are interviewed by a stylist about their own personal tastes while providing their measurements. They then receive their first “trunk”, which is a box containing a selection of clothing and other items, paying only for what they don’t mail back within 10 days. Trunk Club has showrooms in Chicago, Dallas and Washington and is planning to open its fourth showroom in Las Vegas. The company has over 500 employees 250 of which are professional stylists.
This deal fits Nordstrom’s business model. It enhances the company’s capability of serving male customers and expands its online clothing services for men. I think there’s a good chance at growth when two companies collaborate on a project. With Trunk Club currently Chicago based, they will have the opportunity to expand even more and their business will boom. Trunk Club currently suffers from a lack of inventory of branded items, but by teaming up with Nordstrom it will have access to over 100 brands. Nordstrom has 271 stores across 36 states and over 1,500 talented personal stylists that will take Trunk Club’s business to a new high without a doubt.
– Jaleesa Key
Sources: Chicago Business & Luxury Daily
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