Nordstrom: How to Succeed by Selling Just One Shoe
1. Identify the type of retailer that Nordstrom’s is classified as. Describe the characteristics it shares with other retailers of this type.
Nordstrom’s is classified as a department store. They are one of the largest U.S. department store chains, along with Macy’s, JC Penny’s, and Sears. As with the other department stores, each of Nordstrom’s departments are treated as separate buying centers. Each group operates independent from each other, being headed by a buyer who is responsible for the types and quality of merchandise sold, as well as any promotions that may be used. “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.” This makes it easier for the buyer to decide what items to purchase and display in the store, enabling them to sell more full priced items, and improve sales.
Nordstrom’s also uses selective distribution as a type of retailing. They evaluate each potential site for a new store before building there. “Eric Nordstrom, the company’s president, visits each potential location himself before signing off on it. He says his gut instinct about a location is almost as important as the demographics and statistic they analyze. ‘Plenty of place look good on paper and we say no.’” Selective distribution allows them to maintain the quality that they are known for.
2. Describe Nordstrom’s level of service on the continuum from full service to self-service. Give an example of a store that would be on the opposite end of the continuum and explain their differences.
Nordstrom wants to give you the best possible experience, whether it is in their store or purchasing online or thru a mail-order catalog. When going into the store they want to make sure that you are treated with “love” and respect. They refer to their business strategy as “greed through love”. “They have perfected the art
Nordstrom’s is classified as a department store. They are one of the largest U.S. department store chains, along with Macy’s, JC Penny’s, and Sears. As with the other department stores, each of Nordstrom’s departments are treated as separate buying centers. Each group operates independent from each other, being headed by a buyer who is responsible for the types and quality of merchandise sold, as well as any promotions that may be used. “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.” This makes it easier for the buyer to decide what items to purchase and display in the store, enabling them to sell more full priced items, and improve sales.
Nordstrom’s also uses selective distribution as a type of retailing. They evaluate each potential site for a new store before building there. “Eric Nordstrom, the company’s president, visits each potential location himself before signing off on it. He says his gut instinct about a location is almost as important as the demographics and statistic they analyze. ‘Plenty of place look good on paper and we say no.’” Selective distribution allows them to maintain the quality that they are known for.
2. Describe Nordstrom’s level of service on the continuum from full service to self-service. Give an example of a store that would be on the opposite end of the continuum and explain their differences.
Nordstrom wants to give you the best possible experience, whether it is in their store or purchasing online or thru a mail-order catalog. When going into the store they want to make sure that you are treated with “love” and respect. They refer to their business strategy as “greed through love”. “They have perfected the art