Nordstrom Case Study
The famous Nordstrom Inc. started in 1901 from humble beginnings of John W. Nordstrom who invested his stakes previously acquired from the Alaska gold rush into a small shoe store in Seattle, Washington, and the rest is history. In present time, Nordstrom is one of the nation’s leading fashion retailers; build by a family of employees with a strong focus on quality, value, selection, and service.
In 2003, the family-owned retailer had expanded to 180 outlets, 27 chains, which tailed close to $6.5 billion in sales. To add to that, Nordstrom stretched its influence to Europe as well, accounting for about 90 flagship department stores, 50 Nordstrom Rack and 35 fashionable boutiques.
In 1905, a few years after after opening the first shoe …show more content…
A couple of year after in 1972 when sales topped $100 million. That same year, the company changed its name to Nordstrom, Inc. and also launched the first Nordstrom Rack. The firm continued to grow steadily in the 70s hitting sales of $130 million in 1974 and in 1975, The company bought three stores in Alaska and opened a new division offering selected men’s and women’s apparel and shoes in smaller stores and by 1977 sales hit $246 million generated from 24 operating stores. The late 70s marked the beginning of a rapid growth after success was experience in the Southern California market receiving $13.5 million in earning of nearly $300 million, after which an aggressive expansion program was …show more content…
In 1990, a three-month investigation took place and the company was found guilty and had to reimburse some of their employees and in 1993 Nordstrom finally settled out of court, agreeing to pay back employees who worked from 87-90. The settlement cost the firm somewhere between $20 million to $30 million. Other unforeseen events during the late 80s and early 90s such as natural disaster and the downturn in retailing really hurt the company and in 1990 Nordstrom announced that it would cut cost by 3-12%, laying off some employees. The company’s earnings dropped 34% in the fourth quarter of 1989. Earnings dropped 7 percent the entire year from 1989-90, but sales increased that year,
In 2003, the family-owned retailer had expanded to 180 outlets, 27 chains, which tailed close to $6.5 billion in sales. To add to that, Nordstrom stretched its influence to Europe as well, accounting for about 90 flagship department stores, 50 Nordstrom Rack and 35 fashionable boutiques.
In 1905, a few years after after opening the first shoe …show more content…
A couple of year after in 1972 when sales topped $100 million. That same year, the company changed its name to Nordstrom, Inc. and also launched the first Nordstrom Rack. The firm continued to grow steadily in the 70s hitting sales of $130 million in 1974 and in 1975, The company bought three stores in Alaska and opened a new division offering selected men’s and women’s apparel and shoes in smaller stores and by 1977 sales hit $246 million generated from 24 operating stores. The late 70s marked the beginning of a rapid growth after success was experience in the Southern California market receiving $13.5 million in earning of nearly $300 million, after which an aggressive expansion program was …show more content…
In 1990, a three-month investigation took place and the company was found guilty and had to reimburse some of their employees and in 1993 Nordstrom finally settled out of court, agreeing to pay back employees who worked from 87-90. The settlement cost the firm somewhere between $20 million to $30 million. Other unforeseen events during the late 80s and early 90s such as natural disaster and the downturn in retailing really hurt the company and in 1990 Nordstrom announced that it would cut cost by 3-12%, laying off some employees. The company’s earnings dropped 34% in the fourth quarter of 1989. Earnings dropped 7 percent the entire year from 1989-90, but sales increased that year,