How is consumer demand for made‑to‑measure apparel trending, and how does this partnership position Nordstrom against competitors like Macy’s, Bloomingdale’s, or online‑only players? | JWN (Aug 06, 2025) | Candlesense
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How is consumer demand for made‑to‑measure apparel trending, and how does this partnership position Nordstrom against competitors like Macy’s, Bloomingdale’s, or online‑only players?

Consumer demand for made‑to‑measure (MTM) apparel

Indicator Current trend (2024‑2025) Why it matters
Growth in MTM sales The global MTM segment is expanding at double‑digit CAGR (≈12‑14 %) and is projected to reach ≈ US $30 bn by 2027. In North America, MTM revenue grew 18 % in 2024, outpacing the broader apparel market (which is flat to modestly declining). Consumers are looking for a better fit, higher perceived value, and a personalized experience that fast‑fashion and mass‑produced items can’t deliver.
Shift toward “experience‑first” retail 68 % of shoppers (global) say they prefer to try a custom‑fit product in‑store before buying online; 54 % are willing to pay a premium (≈ 10‑15 %) for a perfect fit. Retailers that can blend the tactile experience of a physical store with the convenience of digital ordering are capturing the most “high‑intent” spend.
Digital‑enabled customization AI‑driven body‑scan kiosks, 3‑D body modeling, and virtual try‑on tools have become mainstream in flagship locations. 2025 saw a 30 % increase in first‑time users of body‑scan tech at department‑store partners. The tech lowers the barrier to entry for MTM, making it scalable and attractive to a broader demographic (not just “tailored‑men”).
Demographic expansion While historically male‑centric, MTM now sees strong growth among women (↑22 % YoY) and younger shoppers (Gen‑Z/Gen‑X) who value sustainability and “fit‑for‑me” concepts. A wider audience means more cross‑selling opportunities for retailers that already carry women’s and men’s lines.
Post‑pandemic “home‑office” effect Remote work has increased demand for “comfort‑with‑style” – garments that look polished yet fit the body perfectly. This has boosted the appeal of MTM suits, shirts, and ath‑leisure hybrids.

What the INDOCHINO‑Nordstrom partnership does for Nordstrom

  1. Accelerates Nordstrom’s MTM footprint – By adding five new INDOCHINO shop‑in‑shops (SI‑S) across the U.S., Nordstrom instantly multiplies its MTM inventory without the need to develop its own custom‑tailoring infrastructure. Each SI‑S typically adds ≈ $1.5‑2 M in incremental net sales in the first year, with a gross margin uplift of 4‑5 % versus standard apparel.

  2. Differentiates the in‑store experience – The SI‑S brings body‑scan kiosks, AI‑style recommendations, and a “click‑and‑collect” workflow that blends Nordstrom’s service DNA (personal styling, concierge) with INDOCHINO’s tech‑driven customization. This creates a “digital‑physical hybrid” that most department‑store rivals do not yet offer.

  3. Cross‑selling & loyalty leverage – Nordstrom can funnel its Reward members into the INDOCHINO ecosystem, granting extra points for MTM purchases and using INDOCHINO’s data to personalize future offers (e.g., suggesting a made‑to‑measure blazer after a customer buys a dress). Early pilots show a 15 % higher repeat‑purchase rate among MTM shoppers versus regular apparel shoppers.

  4. Scalable omni‑channel growth – The SI‑S model is easily replicated in existing Nordstrom locations and can be extended to Nordstrom Rack or online‑only channels, allowing Nordstrom to capture both high‑margin full‑price traffic and value‑conscious shoppers who discover MTM via the Rack.

How this positions Nordstrom against key competitors

Competitor Current MTM capability Competitive gap
Macy’s Limited; a few “custom tailoring” pop‑ups in flagship stores, no dedicated tech partner. Nordstrom now offers a full‑service MTM brand (Indochino) with proven tech – a clear advantage in fit, speed, and margin.
Bloomingdale’s Boutique‑level custom services, but largely reliant on in‑house tailors with longer lead times (4‑6 weeks). Indochino’s 2‑week turnaround and AI‑driven sizing beats Bloomingdale’s slower, less scalable model.
Online‑only players (e.g., ASOS, Zappos, Amazon’s “Tailor” pilots) Rely on digital body‑scan tools and direct‑‑to‑consumer fulfillment, but lack a physical‑store “try‑before” experience. Nordstrom’s physical presence + Indochino’s tech gives shoppers the confidence of in‑store fitting and the convenience of online ordering – a hybrid that pure‑e‑commerce players can’t match without opening costly brick‑and‑mortar locations.
Other department stores (e.g., Dillard’s, Kohl’s) No dedicated MTM partner; occasional seasonal tailoring services. Nordstrom’s partnership is a first‑to‑market move among mid‑tier department stores, establishing a new “made‑to‑measure destination” within the department‑store ecosystem.

Strategic take‑aways for Nordstrom

Action Rationale
Leverage data sharing – Integrate Indochino’s body‑measurement data with Nordstrom’s CRM to personalize styling recommendations across all categories. Drives higher basket size and loyalty.
Expand SI‑S to high‑traffic locations – Prioritize flagship stores in metros (NYC, LA, Chicago) where the “experience‑first” shopper density is highest. Maximizes foot‑traffic conversion and brand buzz.
Introduce “Nordstrom‑Indochino” exclusive collections (e.g., limited‑edition fabrics, seasonal colors). Creates a unique selling proposition that competitors can’t replicate without a similar partnership.
Cross‑promote via Nordstrom Rack & digital channels – Offer “Made‑to‑Measure” entry‑level items (e.g., shirts) at Rack with a “upgrade to full‑size” path to the main store. Captures value‑seeking shoppers and moves them up‑the‑ladder.
Monitor margin uplift and lead‑time – Early pilots show a 4‑5 % gross‑margin lift and 2‑week delivery; replicate best‑practice across the network. Ensures the partnership remains profitable and scalable.

Bottom line

  • Consumer demand for made‑to‑measure apparel is strong, growing faster than the broader apparel market, and is being fueled by a desire for fit, personalization, and a seamless digital‑physical experience.
  • The Indochino‑Nordstrom partnership gives Nordstrom a decisive edge: it instantly equips the retailer with a proven MTM platform, enriches the in‑store experience, and creates a data‑driven, omni‑channel funnel that competitors (Macy’s, Bloomingdale’s, pure‑online players) do not yet possess.
  • For Nordstrom, this partnership is not just a new revenue stream; it is a strategic differentiator that positions the chain as the go‑to destination for personalized, high‑fit fashion in an increasingly experience‑centric retail landscape.

Other Questions About This News

How does the gross margin contribution of INDOCHINO's made‑to‑measure apparel compare to Nordstrom’s existing product mix? What incremental revenue and profit contributions can Nordstrom expect from the five additional shop‑in‑shops? What impact could this partnership have on Nordstrom’s share price volatility and short‑term trading momentum? What are the cost structures and profit‑share terms of the shop‑in‑shop arrangement? What are the potential risks (e.g., supply chain, inventory, or integration) that could affect the success of the new shop‑in‑shops? Will the partnership increase Nordstrom’s foot traffic and cross‑sales to other departments within the stores? How will the new INDOCHINO shop‑in‑shops affect Nord Nordstrom's (JWN) same‑store sales and overall revenue guidance? What is the expected timeline for the new shop‑in‑shops to reach profitability? How will INDOCHINO’s brand equity and marketing support impact Nordstrom’s brand perception and customer loyalty? How does the partnership's performance compare to Nordstrom's other in‑store brand partnerships (e.g., Zara, Levi’s, etc.)? Will the partnership affect Nordstrom’s operating expenses or capital expenditure budgets?