A Case Study: "Nordstroms" a Upscale Department Store
CASE STUDY: “NORDSTOM’S” A UPSCALE DEPARTMENT STORE
Mr. Jeffery L. Jones
Marketing 100
Strayer University – Chamblee Campus
Professor D. Holness
February 24, 2011
1. Identify the type of retailer that Nordstrom’s is classified as. Describe the characteristics it shares with other retailers of this type.
Nordstrom would be classified specifically as an upscale large independent department store. This characteristic is shared with other large department retailers like Macy’s, Sears, Dillard’s and is noted as one of the largest U.S. department store’s of its type. Nordstrom offers apparel, shoes, jewelry, cosmetics, fragrances and accessories for women, men and kids. Nordstrom is dealing with competition on many different levels. It is competing with higher end stores such as Saks Fifth Avenue, Neiman Marcus, and Barney’s. It is also competing with second tier stores such as Macy’s and Bloomingdale’s. Because of the diverse competition, Nordstrom constantly stays one step ahead with its unprecedented customer service (DeWitte, 2006).
Saks Fifth Avenue can be categorized as a mini version of Nordstrom. It has similar products, but targets a smaller market and carries less variety. To make it store experience unique, Saks “focuses on other products such as bridal”. In comparison to Nordstrom, Saks is slightly more expensive and is well known for its “much higher brand names”. There is also a difference in the store layout at Saks. Unlike Nordstrom, which it is categorized by department and where popular trendy goods are on the main floor, Saks “bottom floor consists of shoes, make up and teen clothing, and the upper floors are bridal and much higher priced brands and products”. However, the major difference between the two companies is not in the layout of the store, the products offered, or the price of the goods. The major difference is the focus of the company. The mission statement of Saks is completely different, and money is what seems to
Mr. Jeffery L. Jones
Marketing 100
Strayer University – Chamblee Campus
Professor D. Holness
February 24, 2011
1. Identify the type of retailer that Nordstrom’s is classified as. Describe the characteristics it shares with other retailers of this type.
Nordstrom would be classified specifically as an upscale large independent department store. This characteristic is shared with other large department retailers like Macy’s, Sears, Dillard’s and is noted as one of the largest U.S. department store’s of its type. Nordstrom offers apparel, shoes, jewelry, cosmetics, fragrances and accessories for women, men and kids. Nordstrom is dealing with competition on many different levels. It is competing with higher end stores such as Saks Fifth Avenue, Neiman Marcus, and Barney’s. It is also competing with second tier stores such as Macy’s and Bloomingdale’s. Because of the diverse competition, Nordstrom constantly stays one step ahead with its unprecedented customer service (DeWitte, 2006).
Saks Fifth Avenue can be categorized as a mini version of Nordstrom. It has similar products, but targets a smaller market and carries less variety. To make it store experience unique, Saks “focuses on other products such as bridal”. In comparison to Nordstrom, Saks is slightly more expensive and is well known for its “much higher brand names”. There is also a difference in the store layout at Saks. Unlike Nordstrom, which it is categorized by department and where popular trendy goods are on the main floor, Saks “bottom floor consists of shoes, make up and teen clothing, and the upper floors are bridal and much higher priced brands and products”. However, the major difference between the two companies is not in the layout of the store, the products offered, or the price of the goods. The major difference is the focus of the company. The mission statement of Saks is completely different, and money is what seems to
References: DeFelice, Alexandra, 2007, Future,” Seattle Times, May 23, 2007; “A Century of Customer Love,” CRM Magazine, June 1, 2005. DeWitte, Dave, 2006, “Nordstrom Leader Says Retail Business Is Changing,” The Gazette, October 12, 2006. Levinson, Meridith, 2005, “A season on the brink.” Retrieved February 22, 2011, from http://www.cio.com Web site: http://www.cio.com/archive/120105/retail.html?page=1 Ouchi, Monica Soto, “Sharper Focus Helps Nordstrom,” Seattle Times, February 27, 2007; “Sticking with the Family Formula,” WWD, May 22, 2006.