Nordstrom invests in on-demand custom shoe experience

Nordstrom continues to invest in new shopping models with the announcement that it is expanding its partnership with Shoes of Prey, a start-up that enables women to customize shoes online.



The department store retailer, which has rolled out Shoes of Prey design studios in six U.S. stores to date, is now an equity partner in a $15.5 million Series B capital raising round that was led by BlueSky Venture Capital and also includes Greycroft and Khosla Ventures. It is the largest round of funding that Shoes of Prey, which moved its headquarters from Sydney, Australia to Los Angeles earlier this year, has received to date.



The brand plans to use the investment to help fund omnichannel growth in the United States, and to increase production capacity in its dedicated factory in China. Looking ahead, Shoes of Prey plans to accelerate future expansion into new products, starting with women’s handbags.



The brand, which is also available on Nordstrom.com, offers a virtual design experience that places a high degree of control in the hands of the customer. The in-store design studios at Nordstrom, located in the shoe department, include a “statement” shoe wall that exhibits the variety of styles available to the customer.



With styles ranging from flats to stiletto heels, in-store shoppers use iPads to customize their selection, selecting from hundreds and hundreds of different styles, colors, materials, and heel heights. Special “shoe stylists” are also be available to guide customers through the design process. Every pair of shoes is made to order and customers may pick up their shoes at Nordstrom or have them directly shipped to their home in four weeks or less.



Especially for a high-end retailer like Nordstrom, whose customers have extremely high expectations of personalized service, this type of custom design capability could prove a crucial competitive differentiator. As Nordstrom deepens its partnership with Shoes of Prey, the retailer should also be looking ahead to the possibility of 3-D printers allowing shoes to be manufactured and delivered to customers within minutes of order, either in-store or at home.



“We want to serve customers in many different ways to deliver highly relevant experiences,” said Scott Meden, executive VP and general merchandise manager, shoes, Nordstrom. “With personalization becoming more important to how the customer views good service, it’s important for us to find opportunities to stay increasingly relevant. Shoes of Prey offers us a way to enhance and deliver a great customer service experience that aligns well with our strategic vision and long-term goals as a company.”