Nordstrom’s Success

3. What new retail concepts can you identify? How might you learn about more? What strategies do you suggest for learning about new retail concepts?

Macy’s is one of the oldest enterprises in the United States, based retail chain of departmental stores. (Hoovers.com) It was founded by Rowland H.Macy on 14th Street and 6th Avenue in New York City in 1858 with the name of R.H. Macy & Co. The corporate headquarters are located in Cincinnati, OH. Lately, the company was bought by Isidor Straus and Nathan Straus. Macy’s grew from its meager beginning into America’s department store. In 1994, Macy’s became the world’s largest department store company because of merging with Federated Department Stores.

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

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

a. Macy’s, Inc. is a retail organization operating retail stores and Internet websites under two brands (Macy’s and Bloomingdale’s) that sell a wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods. Macy's’ competitors include other middle priced-ranged department stores including Nordstrom, Bed Bath & Beyond, Belk, Bon Ton, Burlington Coat Factory, Dillard’s, Gap, J.C. Penney, Kohl’s, Limited, Lord & Taylor, Neiman Marcus, Nordstrom, Saks, Sears, Target, TJ Maxx and Wal-Mart. p. 4, 10-K

The Nordstrom web site states the following. Over the years, the Nordstrom family of employees built a thriving business on the principles of quality, value, selection, and service. Today, Nordstrom is one of the nation’s leading fashion retailers, offering a wide variety of high-quality apparel, shoes, and accessories for men, women, and children at stores across the country. We remain committed to the simple idea our company was founded on, earning our customers’ trust one at a time.

The industry we have chosen is the department store-retail industry. Within this industry, we have chosen the department stores of JCPenney and Macy’s. We find this industry, as well as these two companies, interesting from a strategic perspective. JCPenney has recently undergone a massive strategic restructuring in regards to its pricing, brand offerings, and store layout, pushing it away from the typical department store strategy of discounts and coupons. Its new strategy has become much closer to Wal-Mart’s strategy of every day low prices. Macy’s, on the other hand, has restructured with a push from the economic

This report presents data describing the differences amongst the two department stores, their fundamental visions, and comparative statistics. Macy’s or Dillard’s: Differences amongst these competitors There are several aspects you can analyze from each department store. Major pieces do set each one apart from the other. Brand names carried by Macy’s and Dillard’s from an average shoppers point of view can go completely unnoticed unless price is involved. For trend shoppers brand names can either make or break a retail store. It can easily determine if he or she will walk to Macy’s or Dillard’s because they already know the store does or does not carry that brand. This is consistent with each department throughout both stores and

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.

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.

Nordstrom was co founded 1901 by a 30 year old man named John W Nordstrom and his partner Carl Wallin. At age 16, John W of Sweden left his home and moved to Alaska where he struck gold. While in Alaska, he met a man named Carl Wallin, “who owned a shoe repair shop in downtown Seattle” (Nordstrom Employee, 2006). The two decided form a partnership and open a shoe store entitled Wallin & Nordstrom.

Publix Super Market. Describe the type of business market, its business share, financials, size and global presence.

Recognizing any success Nordstrom enjoys basic quality of their relationships with customers, employees, vendors and communities. Striving to be a socially responsible company and know that the trust of the customers is to have is not to be taken

Identify the type of retailer that Nordstrom 's is classified as. Describe the characteristics it shares with other retailers of this type.