Nordstrom Executive Summary
Nordstrom Inc.
The economic crisis that started in 2007 affected the business of upscale department stores countrywide. Upscale department stores understand that the items they sell are considered discretionary items, so when there is an economic downturn, they are one of the first industries to be hit. When looking over the Nordstrom Annual Reports from the last few years, there are two things evident: this company has a lasting strategy and they work hard to continuously evolve this strategy. Their strategy includes constantly evaluating risks in the market such as economic conditions, competitive market forces, availability of merchandise, and growth. With an incredible sense to stay ahead of the trends, minimize turnover time, and serve their customers with an uncanny ability, they have easily become one of the top department stores in the country. Nordstrom’s core strength revolves around their customer-first attitude, customer loyalty and their aptitude for merchandising. “Going forward we want to be more than just customer focused. Instead, we’re working to become a truly customer-driven organization.”[1] One way Nordstrom is working to become more customer-driven is by building upon their multi-channel system. This multi-channel network, known as Nordstrom Direct, is made up of their online site, and catalog. Over the past three years, Nordstrom has made great strides to ensure that they are fulfilling the needs and desires of all customers. “We believe online and ecommerce represent our next big opportunities. Within two years more customers will access the Internet via their phone than their computers. We’re responding”[2] All of the effort put into the improvement of the system is showing clear results in the financials. The economic recession was felt all over the U.S. including Nordstrom, however they were able to experience an 8.4% increase in Nordstrom Direct sales during the 2008 fiscal year.[3] Along with improving Nordstrom Direct, an
The economic crisis that started in 2007 affected the business of upscale department stores countrywide. Upscale department stores understand that the items they sell are considered discretionary items, so when there is an economic downturn, they are one of the first industries to be hit. When looking over the Nordstrom Annual Reports from the last few years, there are two things evident: this company has a lasting strategy and they work hard to continuously evolve this strategy. Their strategy includes constantly evaluating risks in the market such as economic conditions, competitive market forces, availability of merchandise, and growth. With an incredible sense to stay ahead of the trends, minimize turnover time, and serve their customers with an uncanny ability, they have easily become one of the top department stores in the country. Nordstrom’s core strength revolves around their customer-first attitude, customer loyalty and their aptitude for merchandising. “Going forward we want to be more than just customer focused. Instead, we’re working to become a truly customer-driven organization.”[1] One way Nordstrom is working to become more customer-driven is by building upon their multi-channel system. This multi-channel network, known as Nordstrom Direct, is made up of their online site, and catalog. Over the past three years, Nordstrom has made great strides to ensure that they are fulfilling the needs and desires of all customers. “We believe online and ecommerce represent our next big opportunities. Within two years more customers will access the Internet via their phone than their computers. We’re responding”[2] All of the effort put into the improvement of the system is showing clear results in the financials. The economic recession was felt all over the U.S. including Nordstrom, however they were able to experience an 8.4% increase in Nordstrom Direct sales during the 2008 fiscal year.[3] Along with improving Nordstrom Direct, an
Cited: "Nordstrom, Inc. 2008 Annual Report." A Service From Broadridge. Web. 17 Jan. 2012. https://materials.proxyvote.com/Approved/655664/20090311/AR_38144/HTML2/nordstrom-ar2008_0003.htm. “Nordstrom, Inc. 2009 Annual Report.” (2009) http://phx.corporate-ir.net/phoenix.zhtml?c=93295&p=irol-reportsAnnual "Nordstrom, Inc. Annual Report 2010." A Service From Broadridge. Web. 17 Jan. 2012. https://materials.proxyvote.com/Approved/655664/20110311/AR_85142/HTML2/nordstrom-ar2010_0003.htm. ----------------------- [1] Nordstrom, Inc. Annual Report 2010 [2] Nordstrom, Inc. Annual Report 2010 [3] Nordstrom, Inc. 2008 Annual Report