How Nordstrom 's Strengths And Weaknesses

Nordstrom’s is classified as a department store. They are one of the largest U.S. department store chains, along with Macy’s, JC Penny’s, and Sears. As with the other department stores, each of Nordstrom’s departments are treated as separate buying centers. Each group operates independent from each other, being headed by a buyer who is responsible for the types and quality of merchandise sold, as well as any promotions that may be used. “The company has also benefited from a new computerized inventory system that gives buyers and salespeople the necessary data to make smarter decisions about

Unlike more mainstream oriented department stores such as JCPenney or Macy's the target demographic for Nordstrom is more upscale. Nordstrom markets products that are indented for those with more disposable income. Because of this, they may not sell the same volume of products as JCPenney or Macy's. However, what they do sell is likely priced significantly higher than the more mainstream competition. The major draw of Nordstrom is the quantity and status of the designer brand names that they offer. Some of these brands include Gucci, BOSS, Calvin Klein, as well many more designer labels. In other words, brand names that not would likely be found at the likes of more mainstream department stores. Furthermore, these brands could be considered

When Nordstrom first started it wasn’t the big retail store that it is today in fact its name wasn’t even Nordstrom, it was Wallin & Nordstrom and it only sold shoes. The founders of Wallin & Nordstrom are John W. Nordstrom and Carl Wallin. Nordstrom didn 't really get that name until 1971. Before becoming just Nordstrom the company decided to make some changes and in 1963 Nordstrom decided to expand and include women apparel, and in 1966 they incorporated men’s and children 's wear. In 1973 Nordstrom was recognized as “the largest fashion specialty store on the west coast” this as stated by the Nordstrom website. Although the Nordstrom store beginnings were in the west coast the retail stores started to expand quickly and began to open stores in the east coast and California. As for today Nordstrom is not just a big retail store, but it is known as a great place to work by Fortune 100 best companies to work for, which has 329 stores located in 39 different states and Canada and 200 Nordstrom rack stores. Just in 2015 the company reached a record in sales making $14.1 billion. Nordstrom still has a long way to go and plans to keep expanding in Canada, but also plans to have 300 Nordstrom racks store by the year 2020.

Nordstrom is a prominent retailer that can be found in most major metropolitan cities. It was founded in 1901 by two partners, John W. Nordstrom and Carl F. Wallin who began selling shoes in the Seattle, Washington area.  Today, Nordstrom operates over 180 retail locations across the country. (Gross & Salamie, n.d.)

Nordstrom’s is classified as one of the biggest U.S. department stores. Along with Sears, Macy’s, and JC Penny’s, Nordstrom manages each department in their stores as an individual buying center. Every group functions separately from one another, and is administered by a buyer who is in charge of all varieties and styles of merchandise sold. Promotions that can be used in the stores are included, as well. “The company has also benefited from a new computerized inventory system that gives buyers and salespeople the necessary data to make smarter decisions about what is needed in the stores—and what isn’t.” (Lamb, Hair, McDaniel 569). This new and improved system allows the department store to market a greater amount of full priced items, which ultimately increase sales. The buyer is also able to easily determine what items to obtain and exhibit in the store by using this system.

They also understand that “when you stop evolving with your customer, you die,” as Jamie Nordstrom, president of stores, has said. They are building fulfillment centers to accommodate online shopping more quickly, use RFID chips to keep their perpetual inventory system for stores and online to share, and invested more into online growth than brick and mortar stores, knowing that this is where their growth is coming from. “Over the next several years Nordstrom expects to derive half of its sales from the Rack and from its online units, versus 38 percent today,” and that’s because “the U.S. Commerce Department estimates that electronic commerce amounted to 6.2 percent of total retail sales in the first quarter of 2014.” Analysts have also been saying Nordstrom has thrived compared to competitors because it is a pioneer in perks like free shipping and also having the unique diversity of products online. (https://nrf.com/news/nordstrom-exec-evolve-or-die) (http://www.luxurydaily.com/nordstrom-integrates-instagram-to-create-shopping-experience/) (http://seattletimes.com/html/businesstechnology/2024313399_nordstromearningsxml.html) (http://wwwiebe.com/nordstrom-customer-service-first/)

The store quickly gained a loyal following due to their amazing customer service and quality. In 1923 they opened their second store. In 1928 John Nordstrom retired and sold his shares of the company to his son’s Elmer and Everett. Wallin retired a year later and also sold his shares to the Nordstrom sons. In 1933 a third son Lloyd joined the team. The Nordstrom brothers purchased Best Apparel, a Seattle based clothing store in 1963. Three years later Nordstrom purchased a Portland fashion retail store and added a shoe store to create Nordstrom Best. Men’s clothing and children’s wear were added in 1966, and within two years two new stores opened in Washington. In 1968 the three brothers decided to retire and hand the company over to a third Nordstrom generation. In 1973 Nordstrom sales passed the $100 million mark, the company was recognized as the largest volume west coast fashion specialty store, and the name was formally changed to Nordstrom inc. In 1975 the company had expanded into Alaska, and the first Nordstrom Rack was opened in Seattle. By 1978 the company had moved into the competitive California market. In 1988 Nordstrom had made a move to the East coast with the opening of their new store in Virginia, and have continued opening Nordstrom and Nordstrom Rack stores ever since.

Opportunity: the company should try to expand its horizon by opening its retail outlets in even small townships. Secondly, the retail chain should try to specialize in selected items like home building materials, apparels for children or youth etc. The American family has also changed dramatically in the past decade. Because of this Nordstrom has changed its focus toward the individual. Ten years ago, it would not be a common sight to see moms shopping with their children, or dad’s waiting on the couch by the escalator with their children. Now days, it is almost unheard of to see families walking around the store. Teenagers, women, and men all come alone or with their significant other.

Nordstrom is classified as an Upscale Independent Department Store Chain and is noted as one of the largest department stores of its type. Nordstrom is founded in 1901 by two partners, John W. Nordstrom and Carl F. Wallin. It’s headquarter is in Seattle, Washington area. Nordstrom carries a wide variety of merchandise and specialty goods, which includes apparel, shoes, jewelry, cosmetics, fragrances, handbags, accessories, and in some locations, home furnishings. Nordstrom is dealing with competition on many different levels. It is competing with higher end stores such as Neiman Marcus and Saks Fifth Avenue. In addition, it is also competing with second tier stores such as Macy’s, Dillard’s,

I enjoyed reading your article on Nordstrom since I enjoy retail shopping. It was confirmed by Sabrina Bovell of the Sourcing Journal that Nordstrom still ranks number one for the most favorite premium fashion retailer among consumers in the United States for six years in a row. The author noted that Nordstrom earned top scores in store atmosphere, merchandise selection, size options and checkout speeds. In terms of customer support, however, a Nordstrom retailer in Seattle received high marks for sales support. Even though customers state that customer service is important, “only 43 percent of customers reported getting help from a sales assistant while they were shopping, and only 38 percent received suggestions for items they might like

As someone who has never had the privilege of living near a Nordstrom’s I’ve always seen going to the store as a treat. Because of where I’ve lived I had never seen an advertisement. What I do find interesting however is their influence over Google and other search engines. I online shop more than I care to admit and anytime I google an article of clothing described a business, or semi-formal their brand pops up in the top 5.

Nordstrom, Inc. was founded in 1901 by John W. Nordstrom. Today, the company is known as a fashion specialty retailer, offering apparel for women, men and children. They offer other products such as shoes, gifts, cosmetics, handbags, jewelry, accessories, and fragrances (Company Profile Nordstrom, Inc., 2016). At the time when the store was opened, in 1901 in Seattle, it was just a shoe store. To this day, the company’s headquarters are in Seattle, Washington, and has expanded operations in 39 states and Canada, with a total of 323 stores, of which there are 121 full-line stores in the U.S. and Canada (Nordstrom Company History). The company employs about 67,000 people. For the financial year ending January 2015, they recorded

Nordstrom today is known as one of the most innovative department stores because they are always coming out with new ways to improve their stores and delivery system to make it easier for employees and customers. One way Nordstrom is doing this is by implementing their program “Buy Online, Pickup in Store”. When shopping online you can find an item you would like to buy and if you need it in the upcoming days instead of between three to eight business day, which is the usual shipping time, you can see if it is in a store near you and then purchase it online and then the “Buy Online, Pickup in Store” team will go around the store to find your items and then you pick it up in the store at the service bar so you do not even have to go to the department that it was purchased from. I have as a customer used this program numerous times, one time I used it to pick up a last minute dress for an upcoming dance so I picked it up the same day I bought it online and it was a quick and easy process.

Weaknesses - Although Nordstrom has substantial strength, the organization is not without weaknesses. First, although Nordstrom’s has a superior selection in comparison to the majority of other retail clothing companies, their quality also comes at a cost that many consumers are not willing to pay. In a period of economic instability and uncertainty, consumers are turning to online retailers such as Amazon in order to fulfill their clothing needs. Moreover, consumers are looking for more convenient ways of purchasing products and clothing is typically something where overnight shipping is acceptable versus an immediate need. Additionally, another weakness of Nordstrom is the geographic dispersion of their retail locations which are most commonly associated with shopping malls. Coincidentally, shopping malls are also struggling to compete with online retailers, thus Nordstrom experiences less opportunistic walk-in customers. On the same token, the opportunity costs for underserved

Macy’s Inc. is one of the oldest enterprises in the United States, belonging to the department stores industry. (Hoovers.com) It is a national brand, owning 850 department stores. During the development of the company, there had several key decisions that were beneficial for the company. However, in recent years, the competitions in department stores industry become more and more serious.