Nordstrom's new 'no-stock' store delivers stock plunge instead

New York

NORDSTROM Inc's plan to open a smaller store concept with no inventory isn't sitting well with investors.

The shares suffered their worst decline in more than a month on Monday after the department store chain announced the new "neighborhood-hub" shop, which will open on Oct 3 in West Hollywood, California.

The idea is to let customers try on clothing and accessories with the help of a personal stylist. If shoppers like what they see, they can order the goods and have them delivered.

The move embraces a model used by upstarts such as Warby Parker and Bonobos, which generally rely on e-commerce but have boutiques where customers can touch and feel the wares. Smaller shops in urban areas are also less reliant on shopping mall traffic to fuel …