Public company Headquarters located in Seattle, WA Nordstrom Inc. has 357 Stores in 40 states and Canada The different divisions of this company are Nordstrom, Trunk Club, Nordstrom Rack, HauteLook, and Jeffrey. These include brick-and-mortar stores, as well as e-commerce platforms.
Fiscal Year
2016
2015
2014
Nordstrom Inc.
14,498
14,095
13,110
Nordstrom Full-Line Stores
7,186
7,633
7,682
Nordstrom.com
2,519
2,300
1,996
Nordstrom Rack
3,809
3,533
3,215
Nordstromrack.com/HauteLook
700
532
360
Trunk Club/Jeffrey Boutiques
554
378
116
(0.4%)
2.7%
4.0%
Nordstrom Inc.
2.9%
7.5%
7.8%
Full-Price
(2.7%)
2.3
3.6%
Off-Price
4.5%
4.3%
5.7%
Full-Price
122
121
117
Off-Price
232
202
175
Nordstrom Full-Line
346
370
371
Nordstrom Rack
507
523
552
Net Sales
Comparable SalesIncrease/Decrease Nordstrom Inc. Net Sales Increase/Decrease
Store Count
Sales Per Square Foot
*Dollars in millions except by Sales Per Square Foot
Nordstromrack.com
Same Branding
Online Partners
HauteLook
Off Price International
Nordstrom Rack
Luxury
Jeffrey clearance
Niche Market
Jeffrey
Small Scale
Trunk Club
High-End Services
Online Partners Full Price
Nordstrom.com
Same Branding
Nordstrom
Providing our customers with the best possible service by to improving it every day. Deliver the best possible shopping experience, helping our customers express their style, not just buy fashion. Success will only come by offering customers the very best service, selection, quality, and value. Free shipping, free returns, and mobile shopping.
After researching and reading a vast amount of online reviews about Nordstrom’s performance. This is a build up perspective of how this company is perceived in the customer’s eye.
*Dollars in millions except by Sales Per Square Foot
John W. Nordstrom, arrives to the US from Sweden. In 1901 Wallin & Nordstrom opens, as a shoe store. By 1930 both partners had retired selling their part of the company to their respective children.
By 1960 they were the largest independent shoe chain in the United States. By 1966, they had expanded to apparel. In 1968, the company is transfer to the third Nordstrom generation. Nordstrom, Inc. goes public on 1971.
It was all about expanding and opening new stores. By 1995, the third Nordstrom generation retires. In 1998 Nordstrom began serving customer online, making them pioneers of online shopping.
During this time Jeffrey, Trunk Club, and HauteLook were acquired. They also partnered with TOPSHOP & TOPMAN. They also began turning towards corporate social responsibility, By 2009 Nordstrom began shipping orders to 96 countries online.
In 2014 the store expanded with “full-line stores� to Canada and Puerto Rico. With plans of opening Nordstrom Rack stores in Canada by 2018.
Nowadays Nordstrom Inc, is on hands of this family’s fourth generation. Blake, Pete and Erik Nordstrom serve as co-presidents of Nordstrom, Inc., and manage the company along with the executive team. Currently, Nordstrom Inc is looking to go private again, though because of the current retail landscape the buyout is on hold.
Nordstrom approach to business has one simple objective “To free employees to treat customers the way they like to be treated.” The company’s entire organizational structure is designed to provide the flexibility needed for employees to achieve that objective.
Nordstrom’s has an impressive return policy. Every salesperson is authorized to refund the purchase price, no questions asked. The Nordstrom philosophy is that it’s unfair to penalize the 98-percent of people who are honest just because 2-percent of the people take advantage of the policy. Even though the policy has been re-structured a bit over the years it still widely recognized by the customers.
A person on the sales floor can sell merchandise from any department in the store. That frees them to focus on meeting the needs of the customer, rather than restricting them to just the department in which they are based.
The practice of setting goals is the glue for the Nordstrom culture. Sales associates, buyers and managers set daily, monthly and yearly goals. Comparisons with results achieved a year ago are closely monitored. Tangible recognition and praise is given.
That way, employees are paid according to their abilities. The company also supplements this commission based compensation plan by providing a retirement-plan which is based on a profit-sharing revenue arrangement, providing motivation and encouraging loyalty.
All managers at Nordstrom start on the sales floor, so they understand what serving the customer entails firsthand. The company does not hire managers from other sources, they have to start as sales associates.
Began in 1952, Nordstrom has an excellent employee profit sharing retirement plan which vests progressively over the employee’s first seven years of service. Long term employees can retire with profit sharing totals in the high six figures.
Each region has a buyer who orders merchandise for just a small group of stores. This gives them the flexibility to buy the stock that reflects local lifestyles and tastes. In addition, buyers are given advice by department managers and sales associates.
Olivia Kim joined Nordstrom back in 2013, first as Director of Creative Projects and currently as Vice President of Creative Projects. She carved her path into these positions and has now become a crucial asset in rethinking the company’s store experience.
Nordstrom full-line stores are usually located in popular downtown areas with big shopping districts. Their other current location is far from big cities, in the suburbs, usually within or inside a shopping mall. Currently, they have 122 stores and haven’t been expanding much on this aspect. Instead, they are closing a couple stores per year. Nordstrom stores are always of big and open spaces, with a very clean aesthetic where beige and bone palettes are protagonist. Although they are some beautiful new Nordstrom, they are several older that are soon to be remodeled or closed.
Definitely one best performing division in Nordstrom Inc. As pioneers of user-friendly websites and online shopping, Nordstrom.com seems to have it pretty figured out. A strong growth is shown for this online platform, that is constantly updated and it aims to be a seamless experience when compared to brick-and-mortar stores.
Nordstrom offers a broad strategy of prices, offering mid-level, high-end and luxury items. Though their big volumes and the average offered price goes from $100 to $300. Nordstrom, differ from its competitors, because they are a luxury department store that focuses on mid-level products. They are recognized for their good price, good quality, good value private label products. Regarding discounts, they are well known in the market for their Anniversary Sale, during the summer and a strong holiday season, which includes Black Friday. Because of the off-price business within their parent company, Nordstrom full-line stores limit on sales. In Women Sneakers & Athletic Shoes, they have around 1813 items ranging from $39 to $1395, ranging from brands like Keds to Miu Miu. Though the price average will be around $150 - $200, which is the type of items Nordstrom’s makes the big investments when developing their buying plans.
Nordstrom carries a vast diversity of product categories. Their strongest one is apparel and shoes, especially for women. In the retail industry, we are highly recognized for carrying great private labels brand each for a different category and market segment. These are Halogen, Nordstrom Men’s Shop, Treasure & Bond, BP., Zella, Tucker + Tate, Lewit, Nordstrom, Leith, and Caslon. Nordstrom also carries a big number of wholesale brands that range from mid-level, highlevel and luxury brands. The strongest category being the mid-level brands. Some of these brands are TopShop, Vince Camuto, Kendall + Kylie, Co, Monse, Chloe, J.W. Anderson, Patagonia, Michael Kors, Adidas Originals, Madewell, T by Alexander Wang, Free People, Steve Madden, and Levis.
Clothing Accessories Shoes Toys & Gifts Baby gear & Essentials
Clothing Shoes Accessories Grooming & Cologne Designer’s Collection
Clothing Handbags Jewelry Accessories Designer’s Collection Shoes
Bedding Bath Gifts Nursery & Kids Decor Holiday Decor Home Decor Tabletop & Kitchen
Make up Skin Care Fragrance Hair care Bath & Body Nail Polish and Care
Electronics & Tech Accessories *Percentages based on Nordstrom Full-Line Stores Net Sales 2016
Boots Booties Comfort Flats Heels Mules & Slides Oxfords & Loafers Rain & Winter Boots Sandals Sleepers Sneakers & Athletic Wedges
Women’s Sneakers & Athletic Shoes
Canvas High top Low top Lace up Mule Platform Printed Athletic Slip on Wedges
Nike Ecco Adidas Vans Steve Madden Bernie Mev Puma New Balance Converse Others
Nordstrom intents to express through their promotions strategies, who their customers are. The campaigns and material are all about the people, not the product. They explain their message in the why, how and what order. They want consumers to choose to be a part of the Nordstrom family. Recently their advertising has shown very diverse, inclusive and real, responding to the current trends and needs of consumers. Society now sees supermodels as relevant public figures, but not the figure they want to be related with. Because their reach is very broad they engage in multiple distribution channels, to get to the right customer, at the right time, the right way. These channels include; Social media, online advertising, print publications, direct mailings, physical product catalogs, mobile app campaigns, coupons, discounts, sales and tv commercials.
Age ranges from 18-54, focusing on the age group of 30-40 years old. Mainly upper-middle class and upper class of America’s society. Incomes ranges from 70K to 250K. Live in highly dense metropolitan cities and a grand majority are married. Not too much ethnic diversity is shown in Nordstrom’s customer. Customers showcase loyalty for Nordstrom with 96% of willingness to come back. Nordstrom’s customers present a heavy percentage of internet shopping and high video consumption through different platforms on a daily basis.
51 years old. Upper-middle class, with an income of around 250K She is a working mom and a wife, with her kids still in school. She works as the Creative Director of her own advertising firm. She is looking for fashionable and upcoming items that are also comfortable for her non-stop day-to-day. She enjoys buying high-end and luxurious footwear. She buys from Chiara Ferragni, Kennel & Schmenger, Adidas by Raf Simons, Golden Goose and ACNE Studios. Her ideal price ranges from $300 - $1200. These are items of a full-price strategy, as they tend to be seasonal. Consumers like her, experience the growing trend towards practices of garment production transparency, fair trade, sustainability, and smart corporate responsibility. She is someone that still believes in brick-andmortar stores but enjoys new concepts that challenge the retail environment and enhance the shopping experience.
34 years old. Upper-middle class, with an income of around 90K She is a single woman who lives in a big city and enjoys shopping online because of her hectic schedule. She works as a Marketing Manager at a corporate company. She is looking for nice and not too trendy shoes, used to go out on the weekends but also for casual Friday at the office category. She enjoys investing in good quality sneakers. She buys products from Cole Haan, Vince, Geox, and Nike. Her ideal price ranges from $150 - $300. These items are not usually on sale, they tend to be more of a full-price strategy. With hectic lifestyles, more consumers like her will prefer to shop for products digitally and pick them up in-store, or vice versa. This service offers convenience and enables consumers to manage their time efficiently, as well as helping them to avoid any shipping fees.
23 years old. Upper-middle class, with a family income of 170K. She is a college student, that attends a private school at an urban environment and constantly uses e-commerce and social media buying. She is looking for a good value deal for fashion items that give her flexibility when getting dressed for different occasions. From time to time she invests in a luxury pair of sneakers. She buys products from BP, Topshop, Steve Madden and Sam Edelman. Her ideal price ranges from $70 $150, but markdowns are usually offered in these sections and good deals are easily found. Consumers like her struggled with changing consumer tastes, because of this they tend to be drawn towards fast-fashion retailers such as H&M, Zara, Forever 21 and Uniqlo. For her, digital marketing is becoming an important part of her life. As she is not only using social media as platforms for browsing and looking at reviews but also shopping.
With the changing retail landscape, store chains that are not in financial distress are closing their weaker performing stores. Retailers will need to improve the seamless omni-channel shopping experience to accommodate rapidly changing consumer needs and the fast-fashion challenge. The retail landscape will continuously change and increasingly become a tech-driven marketplace. The market remains severely competitive and fragmented, as a broad range of players, from domestic to international, small to large, and branded to private label, compete at different price points through multiple distribution channels.
North America market in footwear is the biggest marketplace after Pacific Asia and followed by Western Europe. Compared to apparel, footwear has shown more growth over the last couple of years, top industry followed by beauty and personal care. Internet retailing was the fastest growing retail channel in footwear over the last five years. Store-based retailing remains the most common for the purchase of footwear, representing 83% of overall sales of footwear in 2016. Obviously, fit, size and quality are key criteria for consumers when making a decision to purchase footwear, so they are willing to visit physical stores to check the items before making a purchase.
Sports footwear continues to see strong growth and drive overall sales of footwear. This is due to the growing casual and athletic lifestyle trends. The big three groups in this industry are Nike Inc, Skechers USA, and Adidas Group. By applying this market trends and analyzing Nordstrom’s 10K fiscal report we got our category sales for the year.
The Athletic Shoe market has an expected growth of 7.8% annually throughout 2017-2021. For 2016, 285 million pairs sold. At an average price of $44.80 us dollars. Volume is expected to amount to 404 million pairs by 2021. The top countries that lead the athletic shoe market are in order: China, India, and Italy. The average volume per person in the market for Athletic Footwear amounts to one pair in 2017, surpassing the 0.9 pair statistic of 2016.
Nordstrom’s competitors vary depending on the division. They all differ for full-line stores, discount stores, parent company and e-commerce platforms. This business is often compared with groups like Macy’s Inc and JC Penny. Though, because we are focusing on the full-line stores we have decided to focus department stores with luxurious concepts and a regarding “off-price partner.”Companies like Neiman Marcus, Saks Fifth Avenue, and Bloomingdales. In today’s run towards the ultimate retail experience, most retailers are coming up with innovative ideas. Department stores, don’t stay behind, though after deep research, we can say Nordstrom stands in a good position. We decided to do some research regarding online platforms that could act as a competitor to Nordstrom online platform, which grew in the last years exponentially. The main two companies we will focus on this area are Net-A-Porter and Farfetch.
Key Competitors
Financial Standing for 2016 Network
E-commerce for 2016
Company’s Product Focus
Nordstrom
7,186 - decrease of 5.9%
123
2,519 - growth of 9.5%
Mid Level and High End Brands
Bloomingdales
2,104 - decrease of 0.8%
38
472 - growth of 1.4%
Contemporary Luxury Brands
2,864 - growth of 3.4%
41
796 - growth of 26.1%
High End and Luxury Brands
4,706 - decrease of 4.9%
42
1,471 - growth of 2.5% Classic High end and Luxury Brands
Saks Fifth Avenue Neiman Marcus
Bloomingdale's goal is to be a retailer with the ability to see opportunity on the horizon and have a clear path for capitalizing on it. To do so, they are employing more technology and concentrating their resources on those elements most important to their core customers. Some of their current marketing strategies involve Eco-Fashion pop-up stores, an app, in-store events and the option to pick up in store.
Saks Fifth Avenue presents itself as a luxury company, with very well diversified assets. Their marketing promotions include several online boutique pages and very customized attention to the client. Customers can now connect with Saks sales associates 24/7 and receive even more benefits with their beyond-thestore services.
Neiman Marcus has stayed focused on serving the unique needs of the luxury market. They aim to be recognized as the premier luxury retailer dedicated to providing their customers with distinctive merchandise and superior service. Their marketing promotions involve exclusive, and pretty extravagant events, as well as social promotion.
Net-A-Porter is a great example of a brand that cares about its customer. In 2014 they created and launched, Porter, the brand’s very own print magazine. Porter manages to draw consumers back to print with its unique selling point, the fact that it is shoppable. They also of Mr. Porter, making them a very complete, luxurious and efficient online platform with limited off-line experiences.
Farfetch owns and manages an online marketplace that connects sellers (boutiques and brands) to buyers (shoppers) of high-end fashion from around the world. Farfetch has truly globalized the fashion market by providing consumers direct access to merchandise that would otherwise be unavailable in their home locations.
Sneakers continue to be a highly popular footwear choice, with the athletic trend still being very trendy. These were two popular trends during the year of 2016. Maximalism and ongoing customization themes drive an experimental sense of fun in the sneaker market. Surge in embellishment and color stories. Classic styles are revisited with a more feminine approach to color and material, providing a newness while expanding market reach.
*All images taken from Nordstrom.com Women’s Sneakers & Athletic Shoes Section
Fenty Puma | $159.95
Vans | $54.95
Gucci | $670.00
Miu Miu | $1,150.00
Keds | $85.00
Joshua Sanders | $365.00
Nike | $115.00
Kenneth Cole | $119.95
The sports studies continue, athleisure evolves to become a lifestyle, sports references become established as a cornerstone of fashion development. Velcro fastenings, counterdetailing, stripes and felted wools update the sneaker. A street-smart feel reflecting retro sport and street influencers. Offer a look that is clean, elegant and comfortable. Graphic stripes drive print and pattern development, with active colors such as colors blue, red and white. A military explorer feel. This direction is functional and uniform. Focuses on hard-wearing materials and standard-issue items. The newstalgia direction is a blend of old and new, and real and fake, particularly focusing on early 2000’s style. Neutral palette coupled with pared-down design and appeals to items that are seasonless and genderless.
*All images taken from Wgsn.com Catwalk Gallery
Celine
Louis Vuitton
Public School
Valentino
Yohji Yamamoto
Agnes B
American consumers cut back on discretionary spending on clothing and footwear. Growing trend on towards practices of garment production transparency, fair trade, sustainability, and smart corporate responsibility. The continued casualisation of dress codes intensified the widespread adoption of sportswear in consumers’ lifestyles. With hectic lifestyles, more consumers will prefer to shop for products digitally and pick them up in-store, or vice versa.
*All images taken from Pinterest.com Sneakers Street Style
Vans
Gucci
Vans
Nike
Adidas
New Balance
In order to attract digitally-savvy consumers, many retailers are incorporating digital technologies in their physical retail locations to facilitate and improve the shopping experience. Some of them are Zara, Ikea, Burberry, Neiman Marcus, Nike, Net-a-Porter and Rebecca Minkoff. Major sportswear brands, like Nike and Adidas, are slow adopting 3D printing technology in footwear production.
Donald Trump’s unexpected victory in the US election has rapidly increased uncertainties surrounding future economic policies and the market. For foreign trade, Trump aims to introduce significant trade tariffs on important US trade partners such as Mexico and China. In 2016 Sales from foreign tourists were also down due to the growth US dollar currency over the last three years.
Digital marketing is becoming an important retail tool, as consumers are using social media as a platform not only for browsing and looking at reviews, but also shopping. In 2016 only 11% of the US consumers said they have purchased items via social media. Though this number is expected to grow quickly over the next couple of years because social media networks such as Facebook, Instagram, Twitter, and Pinterest are introducing purchasing tools. Urge to see real figures, one can relate with more easily than supermodels. Relating to the advertising theory of “Para-social Interaction.� Nowadays one of best marketing strategies continues to be connecting with customers throughout social media influencers and bloggers. In 2016 the number of bloggers in the United States was 29.1 million, and it is expected to grow to 31.7 million.
After completing this part of our research, we were able to understand the position Nordstrom holds as a retailer nowadays. Nordstrom is a leading retailer when it comes to implementing change strategies that respond to current challenges in the fashion industry. They are also key developers and testers of new concepts that challenge the definition of omni-channel solutions and innovation. Nordstrom as a group still shows positive and strong numbers. Their number one priority right now is to challenge the old-way-department-store. They focus heavily on their online experience, trying to make it as seamless as possible. Most importantly, they remain focused on what has made them excellent in the past and still does today, their customer service.
As the retail landscape continues to transform at an unprecedented pace, the one thing we know that remains constant is that customers continue to value great service, speed, and convenience. This new shopping experience challenges retail evolution.
Treasure&Bond has been a great way for us to give back to nonprofits in the communities we support. Recently, their latest Pop-in @Nordstrom with Everlane shows their intent to promote socially responsible brands.
Olivia Kim, Vice President of Creative Projects at Nordstrom, partnered with Nike for a collaboration on a women’s-only lifestyle shop that blurs the lines of fitness and fashion as the ultimate sneaker boutique for her at selected Nordstrom’s Flagship locations.
Nordstrom first launched Reserve Online & Try In Store as a pilot in six Washington state stores in the fall of 2016. During the pilot, 80 percent of shoppers who tried Reserve Online & Try In Store continued to use the service multiple times.
Olivia Kim launched this concept in Fall 2015, an in-store designer boutique featuring crosscategory collections of apparel, accessories, home goods and fragrance from emerging and advanced designers.
Launched in October 2013, is an ongoing series of themed pop-up shops that transitions every four to six weeks to offer a new shopping experience and batch of new, often exclusive merchandise. Pop-In takes two forms: a shop curated around a theme featuring brands across different product categories or a partnership with a single brand to bring “the world of � to customers. Some of the concepts have been based on South Korea, Hanes, Exploring the world on technology, and Everlane. This experience was built on a monthly rotation to keep customers coming back to discover new brands, new merchandise and create a fun and compelling experience in stores and online.
Nordstrom’s especial focus on customer service and customer loyalty. Because of how Nordstrom is redefining the retail experience it is still a leader in retail and innovation. Nordstrom counts with a strong portfolio of brands & private labels that are able to reach wide needs and costumers. Being part of a major operational network, Nordstrom Inc., benefits the Nordstrom full-line stores. Nordstrom understands and embraces the industry's shift towards e-commerce, focusing especially on creating a seamless experience throughout all their retail channels.
The intentions of the Nordstrom family to go private and current hold of the situation, because of lack of investors/partners, generates uncertainty within the company. Nowadays Nordstrom full-line stores are living through downtrend and it’s overall operational costs are high, this puts the business in a dangerous situation. Full-line stores growth is currently contained. Any investment from the parent company towards Nordstrom full-line stores, has shifted to the e-commerce and off-price business. New and innovative in-store experiences are not evenly spread out across all Nordstrom’s full-line stores. They are usually only for few locations, flagship stores mostly. This is due to its high cost and delicate investment turnover.
Rising demand for private labels. They offer good value for the US customer and gains for these brands have been reported across all major retail channels. Internet retailing is the fastest growing retail channel in footwear over the last five years. Shoes are Nordstrom’s number two selling category. A constantly growing footwear Market in the US and especially the athletic shoes category. Compared to apparel, footwear has shown more growth over the last couple of years. It is the top industry followed by beauty and personal care. Increase in digital-savvy customers as Millennials enter their high spending life stage and have now more disposable income. Consumers are experiencing a more hectic lifestyle and look for ways to simplify old routines.
A challenging current retail landscape, that is producing financial distress for brick-and-mortar stores. Turning every day towards online retailing and a tech-drive marketplace. A wide variety of mid-level and luxury competitors stand right next to Nordstrom. All re-defining their selling structures to offer the client a better experience at the best value. These competitors are Macy’s, Saks Fifth Avenue, Neiman Marcus and Bloomingdales. The company’s business may be affected as a result of the huge influx of counterfeit products globally. High penetration of counterfeit merchandise may lower the company’s sales and affect its profit margins. In this current retail landscape, consumer change preference very easily and fast fashion is a strong player on the market, renewing their products almost every week.
Push the following brands that are already in the store, and could be able to generate better sales based on our top selling items. These brands can also improve Nordstrom’s customer loyalty: Cole Haan, Reebok, Dolce Vita, Clarks, Sam Edelman, Vince Camuto and Hush Puppies. Push our private labels (BP, Halogen, Treasure & Bond, Zella) especially for sneakers, which seems to be category lacking of this. With this, we will create greater profit for Nordstrom full-line stores. Focusing especially on our core basics, the mid-level volume that attracts most of our consumer, and reducing our focus on high-end fashion without leaving behind. Having relevant but little exclusive options for our clients in the flagship stores. Increase and decrease brands based on our databases analytics. Let go of brands that are not performing well-enough and that are not releasing updated products/designs.
Apply the new tactic “Try before you buy,� which Amazon and Nike recently released. With this tactic customers can order and receive the shoes, try them and then decide to if they want to purchase. It would work as an extension of Reserve Online & Try In Store, just that this time customers can choose where to try it on! Keep updated and in track with how competitors and other companies are innovating and offering new service. Invest in creative projects that challenge the experience of shopping at Nordstrom.
*Dollars in millions
Six Month Buying Plan
Key Data
Sales F/W17-18
95,836,362
Planned Decrease %
(6.5%)
Planned Sales F/W18-19
89,606,998
Initial Markup %
53%
Planned Reductions %
25%
Planned Reductions Dollars
22,401,750
Stock-Sales Ratio
2.3
Total Receipts at Retail
115,443,683
Total Receipts at Cost
54,258,531
Six Month Buying Plan
August
September
October
November
December
January
Planned Monthly Sales
13,441,050
8,960,700
8,960,700
17,921,400
26,882,099
13,441,050
Planned Monthly BOM
30,914,414
20,609,610
20,609,610
41,219,219
61,828,829
30,914,414
Planned Monthly EOM
20,609,610
20,609,610
41,219,219
61,828,829
30,914,414
34,349,349
Planned Monthly Reductions
2,240,176
1,120,087
1,120,087
6,750,525
6,720,525
4,480,350
Planned Purchases ar Retail
5,376,420
10,080,787
30,690,397
45,251,534
2,688,210
21,356,335
Planned Purchases at Cost
2,526,917
4,737,970
14,424,487
21,268,221
1,263,459
10,037,477
AUG
For our assortment, our first criteria to be taken into account was brand performance, we used the top sixteen selling brands for Nordstrom’s Women Sneakers & Athletic shoes category. These brands made up 39.5% of the total category sales. While the reminding 60.5% is build up by over 190 brands, which performance is not too outstanding. To continue with our assortment plan we decided to divide our buying into three different categories Basic, Fashion, and Exclusives. All targeting different stores and satisfying different customer needs. Under these categories, we leveled up by doors, styles, units, and price averages. The styles divisions taken into account were canvas, high-top, low-top, lace-up, mule, platform, printed, slip on and athletic.
Total Receipts at Retail
115,443,683
Planned Sales
89,606,998
Planned Units
1,346,400
Percentage
4%
Total Receipts at Retail
4,617,747
Planned Sales
3,584,280
Planned Units
31,232
Percentage
1%
Total Receipts at Retail
1,154,437
Planned Sales
896,070
Planned Units
7,528
For our flagship level store, we settled on the original Nordstrom store in Downtown Seattle, WA. Since the store is located in the heart of the city and near our headquarters, it offers a wide variety of products and carries from basics to exclusive brands. This means the store carries all three different categories from our assortment plan: basic, fashion and exclusives. This type of Nordstrom store also offers various events like Pop-In @ Nordstrom, Reserve online & Try In Store, Space lab @Nordstrom and Nordstrom x Nike. Each month there is a different experience or interactive space where customers can participate and see the latest trends and products at Nordstrom. Customers can also take advantage of the facilities such as our outstanding all-organic and the spa facilities.
For the small Store leve we choose the one at Broomfield in the suburbs of Denver, Colorado. This store is different in many ways from our flagship in Seattle, WA. This store only carries two of the categories from our assortment plan; the basic and some fashion. This store level doesn't offer many events where customers can participate since the budget and the demand of customers is lower. The facilities only count with a cafe, but neither spa nor restaurant are offered. This facility is getting old, so it soon needs to be remodeled or close because it's contributing to Nordstrom's high operating expenses.
Throughout this research to fully understand Nordstrom not as customers, but as insiders. We are now able to discuss the company comfortably, because we clearly know what they are doing and what they are not doing. The most relevant idea to highlight is that even though Nordstrom is a company with a century of heritage, they are still a very reliable game player in the industry. Currently, they are undergoing a huge transition from their old, but very successful, department store style to a contemporary omni-channel company. The way they have approached this change is smart, but overall, very creative. Paying close attention to place their customer in the center of all, as they always have. For them, it still is all about outstanding customer service. Regarding our six-month buying plan, the most amazing part is how all the research and valuable data collected in the way took us to a place where we were able to make critical decisions. Understanding at the end how all the pieces come together is really valuable, it’s that moment where the classroom scene is now more of an office.
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1. Nordstrom Youtube Channel https://www.youtube.com/watch?v=0Xw2NiNR0Rk 2. Nordstrom Investor Relations http://investor.nordstrom.com/phoenix.zhtml?c=93295&p=irol-reportsAnnual 3. Nordstrom About http://shop.nordstrom.com/c/about-us?origin=footer 4. Nordstrom Company History http://shop.nordstrom.com/c/company-history 5. The Nordstrom Way https://pdfs.semanticscholar.org/6c0c/1202d660b67983c0a37f3b93fac2c05f40b9.pdf 6. WWD Nordstrom Financial Information http://wwd.com/business-news/retail/nordstrom-reports-fourth-quarter-net-gain-10816997/ 7. WWD Nordstrom Buyout http://wwd.com/business-news/financial/nordstrom-family-buyout-private-equity-10955187/ 8. Customer Reviews https://www.bbb.org/western-washington/business-reviews/department-stores/nordstrom-inc-in-seattle-wa-504115/reviews-and-complaints https://www.trustpilot.com/review/www.nordstrom.com https://www.trustpilot.com/review/www.nordstrom.com?page=2 9. Marketing Channels Research https://www.bluecore.com/blog/nordstrom-multichannel-marketing/ 10. Nordstrom New Return Policies http://www.refinery29.com/2017/01/138291/nordstrom-return-policy-change 11. Nordstrom New Return Policies https://www.seattletimes.com/business/retail/nordstrom-says-returns-policy-has-not-changed/ 12. Nordstrom Mission http://fortune.com/2015/03/13/company-slogans/ 13. Nordstrom, Inc. acquisitions http://www.nytimes.com/2005/08/23/business/nordstrom-buys-big-stake-in-pair-of-luxury-boutiques.html 14. About Olivia Kim https://fashionista.com/2014/11/olivia-kim 15. EuroMonitor Footwear and Apparel US 2016 Industry Report http://0-www.portal.euromonitor.com.library.scad.edu/portal/analysis/tab 16. EuroMonitor Footwear US 2016 Industry Report http://0-www.portal.euromonitor.com.library.scad.edu/portal/analysis/tab
17. Statista Athletic Footwear US 2016 Industry Report https://0-www.statista.com.library.scad.edu/outlook/11020000/109/athletic-footwear/united-states 18. OneSource Nordstrom Inc. Company Profile https://app.avention.com/company/c1accb58-aad1-3dd0-ae2d-132d481b466b#report/company_summary 19. Nordstrom 10k Financial Report 2016 http://investor.nordstrom.com/phoenix.zhtml?c=93295&p=irol-reportsAnnual 20. Nordstrom Website for Women’s Sneaker’s & Athletic Shoes https://shop.nordstrom.com/c/womens-sneakers?origin=topnav&cm_sp=Top%20Navigation-_-Women-_-Sneakers%20&%20Athletic 21. Nordstrom Press Room http://press.nordstrom.com/phoenix.zhtml?c=211996&p=irol-overview 22. WGSN Retail & Buying Reports for Sneakers https://www.wgsn.com/content/reports/#/Retail+&+Buying/w/Product_Categories/19940 23. VALS Strategic Business Insights http://strategicbusinessinsights.com/vals/ustypes.shtml 24. Nielsen Segmentation Solutions https://segmentationsolutions.nielsen.com/mybestsegments/Default.jsp?ID=30&menuOption=segmentdetails&id1=CLA.PSN&prevSegID=CLA. PZP&filterstate=&sortby=segment_code 25. Retail Touch Points Industry Insights https://www.retailtouchpoints.com/features/industry-insights/macy-s-kohl-s-and-nordstrom-shoppers-who-are-they-really 26. Viantinc Industry Insights https://viantinc.com/news/blog/10-things-you-never-knew-about-nordstrom-macys-and-kohls-shoppers/ https://storify.com/ddimas/who-shops-at-nordstrom 27. Hoovers Bloomingdale’s Financial Report http://www.hoovers.com/company-information/cs/revenue-financial.bloomingdales_inc.28b4701ee70ace17.html 28. Hoovers Saks Fifth Avenue Financial Report http://www.hoovers.com/company-information/cs/marketing-lists.saks_incorporated.3f609b7ecb58fece.html 29. Forbes Neiman Marcus Company Profile https://www.forbes.com/companies/neiman-marcus-group/ 30. Farfetch Harvard Business School Report https://rctom.hbs.org/submission/farfetch-global-fashion-online-in-store/ 31. Net-a-Porter E Consultancy Learning https://econsultancy.com/blog/68219-four-things-brands-can-learn-about-content-marketing-from-net-a-porter 32. Statista Information About Bloggers US https://www.statista.com/statistics/187267/number-of-bloggers-in-usa/