Nordstrom Swot Analysis

Nordstrom, founded in 1901 by John W. Nordstrom, is a high-end American retail department store with 225 stores in the U.S. and most recently, a flagship store in Canada (Caplinger. 2013). Generating over $10 billion in annual sales, Nordstrom has cultivated a reputation for quality and customer service. As a result, shoppers maintain a strong sense of loyalty to the fashion retailer. (Caplinger. 2013). This paper will examine the segmentation and target market of Nordstrom.
Demographic
Nordstrom shoppers are classified into two distinct groups. Nordstrom’s core group of shoppers, and those which the Nordstrom brand identify strongly with is the high-end luxury shopper. Nordstrom offers a high-quality lineup of designer apparel,
One common core true of all shopper is the desire for quality products and responsive, personalized customer service. Nordstrom shoppers lead active lifestyles; engage in physical and social activities. Nordstrom shoppers are often involved in various civic and social groups, have a wide array of personal and professional interests and family oriented. From the pediatric customer to the geriatric, Nordstrom shoppers have full schedules leaving little time for wasted shopping. A shopping trip to Nordstrom for many is as much a social event as a functional one. Nordstrom recognizes this and has thus put into place its Café, a full-service restaurant offering a fine dining experience including alcoholic beverages. The design of the café allows shoppers to reconvene with family and friends while providing respite from the task of shopping. Nordstrom clients are fashion forward, discerning and demanding when it comes to quality products thus, the higher than average price point of Nordstrom product offerings is readily
Due to their hectic and active lifestyles, the average Nordstrom shopper desires a hassle free quality shopping experience. Quality driven and willing to pay the extra few dollars to feel a sense of esteem and gratification, Nordstrom capitalizes on these behavioral characteristics by encouraging salespeople to cultivate relationships with their clients thus providing shoppers a sense of trust and loyalty to the brand. Through the provision of personal shoppers, personal stylists and the ability to make an appointment for shopping needs, these behavioral needs are satisfied. The Nordstrom approach is ingenious as it also provides the ability to monitor and track the customers spending habits and trends allowing Nordstrom to base its products offerings and service with little margin of error or loss of profits. In addition to being fashion forward, the average Nordstrom shopper is tech savvy. In doing so, Nordstrom has cultivated a strong sense of community among shoppers thus creating a network effect that drives repeat sales (Caplinger.