Nordstrom Inc. : An Expensive Marketing And Merchandising Campaign

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A year short of its 100th anniversary, Nordstrom Inc. was in trouble. An expensive marketing and merchandising campaign begun in early 2000, dubbed "Reinvent Yourself," was flopping in its attempt to reach out to younger customers. Earnings were down 23.6 percent in the first half of the year. The stock was trading around $17 per share, a far cry from the $40 neighborhood the stock had visited the year before. In August 2000 Nordstrom 's board replaced the company 's management, including widely respected company chairman and CEO John Whitacre, and appointed a new team -- many of them named Nordstrom. Fourth-generation family members Blake Nordstrom, Peter Nordstrom and Erik Nordstrom were all promoted: Blake to company president, Peter…show more content…
Successful major national retailers, such as the Dayton family 's Target Corp., simply weren 't run like a family-owned corner store. "The Daytons are not relying on their own family to produce the best CEO," Ramos said when the announcement was made. "With Nordstrom, now it 's very unclear what the strategy 's going to be -- there are more questions than answers." But three years later, the strategy is clear and the critics have been silenced. Nordstrom picked its turnaround team from the family tree, and that turned out to be the right move after all. While its department-store competitors have mostly struggled this year to post even flat comparable-store sales, Nordstrom 's sales at stores open more than a year have been rising steadily since May. The company has bested analyst expectations by a wide margin in the past two quarters, and saw its stock shoot up to more than $35 a share in November after it reported a 147 percent increase in third-quarter income and raised its earnings guidance for the fourth quarter. As Marple 's Pacific Northwest Newsletter recently put it, "It has become abundantly clear that Nordstrom finally has its groove back." Upcoming Events Bizwomen Mentoring Monday April 04, 2016 Duncan Clark, Entrepreneur and author of Alibaba: The House That Jack Ma Built April 20, 2016 Hold Us Accountable: Why Health Care Systems Want Employers to Demand Value and High Quality Health Care April 25, 2016 See
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