Nordstrom : A Shopping Experience Coupled With Personalized Service

Nordstrom (NYSE: JWN) was founded in 1901 by John W. Nordstrom and Carl F. Wallin in Seattle, Washington[1]. Over the next two decades, Wallin & Nordstrom grew and they opened a second location in Seattles University District[1]. As the company expanded into the largest independent shoe chain in the United States, Nordstrom began to explore additional product lines by expanding into clothing[1]. Today, Nordstrom has annual revenues exceeding 14 billion dollars per year and operates three hundred and fifty seven stores in forty states. Although Nordstrom has experienced incredible success since their inception, the organization has realized declining sales in their retail stores. In order to combat a change in

One of those weaknesses being the high concentration in the state of California. Looking at the coverage of the Full-line and Rack Nordstrom stores, there is heavy presence in the east and west coasts. When comparing Nordstrom to its competitors, Nordstrom has little to no presence in the Mid-West. With such a heavy concentration on a geographic location like California, the economic condition of the location risks a high influence on the company's sales.  Unlike Macy’s, who has just announced the closure of one-hundred stores nationwide, Nordstrom is continuing to increase their store counts, with 20 stores opening in 2017 (five in California).  To grow out of this weakness and not have to produce closures in stores like Macy’s, further concentration in other geographic markets would reduce the economic risk of focusing on California

Nordstrom is an ideal store based in US equipped with fashionable items that can be bought through coupons availed through Nordstrom coupons. The Nordstrom coupon codes are another way to make discounted deals you can search for on the online web. Women make their important buys of fashionable items which is sold with use of Nordstrom coupon.

Second is place, the locations of the stores, and the hours in which the stores are open. This is where selective distribution comes into play. “Nordstrom has 157 stores in 27 states, but they plan to open 19 more by 2010, expanding into Boston, Ohio, and other untapped U.S. markets.” By limiting where Nordstrom’s are located, this allows them to maintain a superior product image, and charge a premium price for the products.

Identify the type of retailer that Nordstrom’s is classified as and describe the characteristics it shares with other retailers of this type.

Nordstrom would be described as a department store. They carry a wide variety of goods, such as clothing, accessories, handbags, jewelry and cosmetics like other department stores such as Macy’s, JCPenney and Sears. They have a very high level of service as evidenced in the case study about selling just one shoe and taking a return on snow tires when they never sold auto parts. Their prices are fairly high since they carry mostly high-end brands. These are all traits that department stores share.

Through the 70’s the company continued to grow. In 1974 annual sales hit $130 million. By 1980 Nordstrom was the third largest specialty retailer in the country. Sales hit $407 million and in the next few years, sales continued to rise. Nordstrom’s success was due to many factors. Shoes accounted for about 18 percent of total sales. In addition Nordstrom consistently maintained huge inventories and selection, which were usually twice the size of other department stores. Anchor malls seek the company, as a cornerstone of downtown renovation projects or as an added jewel for high end shopping customers. By being able to expand not only by adding locations, but also by expanding merchandise sold, Nordstrom became a dominant force in the industry and strengthened their market share position.

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.

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.

Nordstrom, created in 1901 by John W. Nordstrom as a small shoe store in Seattle, Washington, is a major department store located in the United States and Canada. At Nordstrom you can find apparel, home goods, shoes, and accessories for your daily lives. Nordstrom has over 300 stores located in 40 states and has become one of the top department stores through their innovative tactics, great customer service, welcoming store environment, and their wide range of brands and products.

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.

Perception is important in an organizational culture. Perception is a “process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.” (Judge & Robbins, 2011) Nordstrom has a culture of autonomy, empowerment, good judgment, and above all good customer service. The leadership communicates the company history and goals through story telling so that employees can understand the importance of customer service to the organization. For example, in 1978 a customer returned a tire to the store, the employee asked for the receipt and returned the money to the customer. When working for Nordstrom as a seasonal employee, the tire story was shared with the new employees and is currently being shared with new employees. What I perceived the organization to be is one of standing by their claim of superior customer service, using good judgment, and the customer is always right.

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,

Three years later, the company moved into the competitive California market; and by 1988, Nordstrom had made the big move to the East Coast with the opening of a stunning new store in Virginia.

Nordstrom falls under the department store category of retailing usually selling upscale durable products. Stores that mirror Nordstrom are Sears, JCPenny, Dillards and Macy’s. These department stores carry a variety of goods from apparel, cosmetics, housewares, electronics and furniture. Each department having its own buying center that’s run by a department head that is in charge of ordering merchandise, running product promotions and managing department employees. Nordstrom is able to