Paula Rosa
Daniela Maduro
Leigh Anne Greenberg
Andy Engle
John W. Nordstrom believed success would come only by offering customers the very best service, selection, quality and value.
In 1973, the first Nordstrom Rack opened as a clearance center in the basement of the downtown Seattle store.
By 1960, the downtown Seattle shoe shop had become the largest shoe store in the country. The company, now with eight locations in Washington and Oregon, was the largest independent shoe chain in the United States.
By 1975, Nordstrom had expanded into Alaska. Three years later the company entered the competitive California market. And in 1988, it opened its first East Coast store in Virginia. Expansion continued across the U.S. throughout the 1990s and into the next decade.
1973-1975 - Expansion
1960 - Growth 1901 - The Start Carl F. Wallin, a Seattle shoemaker Nordstrom had met in Alaska, offered him a partnership in a shoe store. In 1901, they opened their first store, Wallin & Nordstrom, on Fourth and Pike in Seattle.
1971 - Going Public Going public in 1971, the company was formally renamed Nordstrom, Inc. Two years later, annual sales surpassed $100 million, and the company was recognized as the largest-volume fashion specialty store on the West Coast.
In 2014, Nordstrom opened its first Canada store at Chinook Centre in Calgary. Nordstrom also opened a fullline store at The Mall of San Juan in Puerto Rico. Nordstrom furthered its expansion in Canada in 2015 and 2016 with the opening of full-line stores in Ottawa, British Columbia, and Toronto. The company has plans to open Nordstrom Rack stores in Canada starting in 2018.
In 2005, the company purchased a majority interest in Jeffrey; two luxury fashion boutiques in Atlanta and New York City.
2005 - Luxury Boutiques
2014 - Going International
2011-2013 - Partnerships In 2011, Nordstrom acquired LA based HauteLook. From 2011 to 2013, Nordstrom operated Treasure & Bond, an independent charity-concept store, in Manhattan, that donated 100% of its profits to New York children’s charities. In 2012, Nordstrom became the only major U.S. retailer to sell a broad assortment of TOPSHOP and TOPMAN.
Today Today, Blake, Pete, and Erik Nordstrom serve as co-presidents of Nordstrom, Inc., and manage the company along with the executive team. From one tiny shoe store, Nordstrom has grown into a leading fashion specialty retailer with global reach. It offers an unparalleled selection of shoes, clothing, and accessories. It also offers an extensive range of services to make shopping fun, personalized, and convenient.
MISSION STATEMENT
Fashion changes. Shopping changes. Our commitment to happy customers does not.
VALUES
In store or online, wherever new opportunities arise— Nordstrom works relentlessly to give customers the most compelling shopping experience possible.
Nordstrom Inc. Headquarters - Seattle, WA 357 stores in 40 states and Canada
122 full-line stores in the U.S. and Canada
224 Nordstrom Rack’s
7 Trunk Club clubhouses a personalized styling service
2 Jeffrey boutiques
2 Clearance stores
Distribution Centers
Gainesville, FL
Upper Marlboro
Elizabethtown, PA
Dubuque, IA
Serves customers online in 96 countries through Nordstrom.com and our nordstromrack.com site, which operates in partnership with our private sale site HauteLook, which gives customers in the U.S., Canada and Australia access to offprice fashion at considerable savings.
F I V E R’ S
$10 Baggu ‘Standard Baggu’ Nylon Tote $398 Kate Spade - Robson Lane - Marcelle Lether Top Handle Satchel $18,000 Gucci - Falena Moth Ostrich Leather Satchel
$10.00
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$18,000.00
Handbags
Nordstrom Anniversary Sale
Occurs every July / August
Half Yearly Sale - Spring / Fall 3 Seasonal Sales
RIGHT PRICE
Promotions
Gift with Purchase Buy and Save Employee Discount
RIGHT TIME Always on top of the newest trends Carries seasonal items year-round
RIGHT PLACE 122 Full-line Stores Placed in bigger, more progressive cities as well as, in higher socio-economic areas
RIGHT QUANTITY Vast array of products
“We want people to view Nordstrom as your one stop shop, providing customers a great in store or digital experience. “ - Brandy Jefferson 2017
RIGHT Tabletop & Kitchen
Electronics
Jewelry
Clothing Gifts
Wedding
Brixton Claxton Water Repellent Hooded Windbreaker $38.98
Givenchy Leather Bomber Jacket $3,490
Shoes Skin Care
Bedding
Make-Up
Holiday Decor
Billy Reid William Merino Wool Topcoat $795
Tech Accessories Bath
French Connection Regular Fit Quilted Bomber Jacket $168
Baby Gear & Essentials
Accessories
Handbags
Grooming & Cologne
Socialite Pocket Tank Dress $20.40 Rebecca Taylor Violet Velbet Sheath Dress $595
Girls Boys Home Decor Bath & Body
Fragrances
Nail Polish & Care
PRODUCT
Carolina Herrera Strapless Layered Tulle Gown $7,990
Top Shop Moto Velvet Pinafore Dress $75
P R I VAT E L A B E L B R A N D S
1901 BP. BPM Fueled by Zella (Zella Girl) Calibrate Caslon Chelsea28 Classiques Entier Frenchi Halogen Hinge John W. Nordstrom Leith Nordstrom (Baby) Stem (Baby) The Rail Tildon Treasure&Bond Trouve Wallin and Bros. Zella
MARKETING
Multichannels: Direct Mailings Physical Product Catalogues Social Media Content Production Mobile App Campaigns
C R E D I T / D E B I T CA R D 4.7 Million Customers - 38% of Sales Credit: Earn 2 points per dollar spent in stores and online at Nordstrom, Nordstrom Rack, HauteLook, and Trunk Club. Earn $40 bonus Note when you spend $100 at Nordstrom the day you are approved. No Annual Fee and competitive APRâ&#x20AC;&#x2122;s. 24/7 Nordstrom Customer Service. Debit: Debit card links to your existing bank account and is completely free. Earn $20 back in Nordstrom Notes for every 2,000 points. Comes with alterations. Early access to Anniversary Sale.
Entire Shoe Market - $79.6 Billion Women - 42.7 Billion Designer Footwear - 11.3 Billion Women Designer Footwear - 7.2 Billion
Ralph Lauren Corp LVMH Inc. Michael Kors Holdings Hugo Boss AG PVH Corp Burberry USA Tory Burch LLC Chanel SA Gucci America Inc. Salvatore Ferragamo SpA VF Corp Kering SA Prada USA Corp Coach Inc YSL America Inc Hermes Intl. SCA Kate Spade & Co Moncler SpA Others
16.2% 6.4% 5.5% 4.5% 3.3% 2.4% 1.7% 1.4% 1.2% 1.0% 1.0% 0.9% 0.9% 0.8% 0.7% 0.7% 0.6% 0.5% 48.9%
(Designer Apparel & Footwear Segmentation)
Company Shares
Ralph Lauren Michael Kors Hugo Boss Calvin Klein Burberry Louis Vuitton Tory Burch True Religion Givenchy Chanel Gucci Salvatore Ferragamo Coach Marc Jacobs Saint Laurent Prada Hermes 7 For All Mankind Kate Spade Others
16.2% 5.5% 4.5% 3.1% 2.4% 2.1% 1.7% 1.4% 1.3% 1.2% 1.2% 1.0% 0.8% 0.8% 0.7% 0.7% 0.7% 0.7% 0.6% 53.3%
(Designer Apparel & Footwear Segmentation)
Brand Shares
118 Full line US Stores Fiscal 2015: $7.6 Billion 14.1 Billion Total Net Sales
Fiscal 2016: $7.2 Billion 14.5 Billion Total Net Sales
OUR C A L C U L AT I O N S
24 % $7,200,000,000
=
$1,728,000,000
C O M P E T I TO R S
New York City, NY 25 Billion Macy’s Inc. Annual Sales 1.6 Billion Bloomingdale’s
38 Stores 130 Shoe Designers
Dallas, TX 4.95 Billion Annual Sales 46 Stores 85 Shoe Designers
New York City, NY 1.8 Billion Annual Sales 41 Stores 119 Shoe Designers
LOYALTY Highest Annual Sales Most Stores
International Locations Most Private Labels
Wider Variety of Prices
Largest Quanitity Shoe Designers
Personalized Shopping Experience
International Locations
TRENDING NEWS
Going Private?
NO Nordstrom is having trouble getting financing for a deal.
Nordstrom shares fell about 5 percent in premarket trading.
Nordstrom said they are going to re-evaluate after the holiday season.
Nordstrom Local - Melrose In-store bar with wine, beer, coffee, and juices Eight fitting rooms Alterations Convenient merchandise pick-ups and returns Manicures Personal stylists Create more personalized visits with less friction Shorter waits Fewer returns Actual face-to-face contact via its styling experts
OLIVIA KIM Opening Ceremony Veteran She is the VP of creative projects and curator of our monthly themed pop in shops. She is helping Nordstrom rethink the store experience
TRENDS
V E LV E T
FLORAL
EMBELLISHED
M E TA L L I C
S W O T
Promising Quality, Value and Services Diversity Strong Portfolio Brands and Private Labels Operational Network
Higher Operating Costs
Rising Demand for Private Label Growth Prospects: E-Commerce Store Base Expansion Initiatives
Competitive Environment Increase Counterfeit Products Change in Consumer Preferences
S W O T
Promising Quality, Value and Services Diversity Strong Portfolio Brands and Private Labels Operational Network
Higher Operating Costs
Rising Demand for Private Label Growth Prospects: E-Commerce Store Base Expansion Initiatives
Competitive Environment Increase Counterfeit Products Change in Consumer Preferences
S W O T
Promising Quality, Value and Services Diversity Strong Portfolio Brands and Private Labels Operational Network
Higher Operating Costs
Rising Demand for Private Label Growth Prospects: E-Commerce Store Base Expansion Initiatives
Competitive Environment Increase Counterfeit Products Change in Consumer Preferences
S W O T
Promising Quality, Value and Services Diversity Strong Portfolio Brands and Private Labels Operational Network
Higher Operating Costs
Rising Demand for Private Label Growth Prospects: E-Commerce Store Base Expansion Initiatives
Competitive Environment Increase Counterfeit Products Change in Consumer Preferences
BUYING PLAN
Nordstrom 6 Month Buying Plan Fall 2018 Planned Sales for Period
$
107,712,000
LY Sales for Period
$
124, 416,000 2
Inventory Turnover Average Stock
$
53,917,549.71
Reduction $
$
5,385,600
Reduction %
5%
IMU %
55%
Planned EOM for Period
$
(000's) Net Sales
54,286,848
August
$
% Fall Stock / Sales Ratio
17,233,920 $
September
14,002,560 $
October
16,156,800 $
November
21,542,400 $
December
22,619,520 $
January
16,156,800 $
16%
13%
15%
20%
21%
15%
3
3
3
3
3
3
Total
107,712,000 100%
BOM Stock
$
51,701,760 $
42,007,680 $
48,470,400 $
64,627,200 $
67,858,560 $
48,470,400 $
54,071,424
EOM Stock
$
42,007,680 $
48,470,400 $
64,627,200 $
67,858,560 $
48,470,400 $
54,286,848
Reductions
$
861,696 $
700,128 $
807,840 $
1,077,120 $
1,130,976 $
807,840 $
5,385,600
Receipts Retail
$
8,401,536 $
21,165,408 $
33,121,440 $
25,850,880 $
4,362,336 $
22,781,088 $
115,682,688
Receipts Cost
$
3,780,691 $
9,524,434 $
14,904,648 $
11,632,896 $
1,963,051 $
10,251,490 $
52,057,210
ASSORTMENT PLAN
High
56.8% Boots Sneakers Flats Heels
Medium
40% 35% 10% 15%
$ 65,669,206 AUR $ 26,267,682 $ 1,000 $ 22,984,222 $ 800 $ 6,566,921 $ 600 $ 9,850,381 $ 900
Units 26268 28730 10945 10945
55% 30% 5% 10%
$ 30,848,717 $ 16,966,794 $ 9,254,615 $ 1,542,436 $ 3,084,872
AUR $ 900 $ 700 $ 600 $ 800
Units 18852 13221 2571 3856
AUR $ 900 $ 700 $ 600 $ 800
Units
40% 30% 18% 12%
$ 19,087,566 $ 7,635,026 $ 5,726,270 $ 3,435,762 $ 2,290,508
26.7% Boots Sneakers Flats Heels
Low
16.5% Boots Sneakers Flats Heels
8483 8180 5726 2863
LARGE ASSORTMENT PLAN
North Park Mall Dallas, Texas
HIGH ALEXANDER MCQUEEN ALEXANDER WANG CHLOE GUCCI GUISEPPE ZANOTTI MANOLO BLAHNIK MIU MIU SAINT LAURENT SALVATORE FERRAGAMO CHOLE
MEDIUM BURBERRY STELLA MCCARTNEY TORY BURCH VALENTINO
LOW TODS
Large Volume Store
Sales For Period Receipt For period 4% $ 107,712,000 $ 115,682,688.00 $ 4,308,480 $ 4,627,308
SMALL ASSORTMENT PLAN
South Park Mall Charlotte, North Carolina
HIGH TORY BURCH VINCE SALVATORE FERRAGAMO
MEDIUM BURBERRY
GUCCI CHLOE ALEXANDER WANG
LOW PEDRO GARCIA ACNE STUDIOS TODS
Small Volume Store Sales For Period Receipt For period 0.70% $ 107,712,000 $ 115,682,688.00 $ 753,984.00 $ 809,779
http://shop.nordstrom.com/c/about-us https://www.cnbc.com/2017/08/10/nordstrom-q2-earnings-2017.html https://en.wikipedia.org/wiki/Timeline_of_Nordstrom https://www.popsugar.com/fashion/Nordstrom-Secrets-Revealed-43419720 http://shop.nordstrom.com/c/brands-list http://money.cnn.com/2017/10/16/investing/nordstrom-sale-talks-suspended/index.html
SOURCES http://money.cnn.com/2017/10/02/investing/nordstrom-retail-buyout-talks/index.html?iid=EL https://www.nytimes.com/2017/10/16/business/nordstrom-private.html https://www.wgsn.com/content/search/#/fall%25202017%2520shoes https://www.forbes.com/companies/neiman-marcus-group/
https://www.forbes.com/sites/walterloeb/2017/04/05/hudsons-bay-company-red-ink-all-over-the-2016-results/#7de9782340c4 http://www.neimanmarcus.com
https://www.bloomingdales.com
https://www.saksfifthavenue.com/Entry.jsp?site_refer=360i+G+TR&kw_refer=saks+fifth+avenue&gclid=Cj0KCQjw95vPBRDVARIsAKvPd3LbD3qHnZk0wd26zZjyBz30g8rkQj6Et8-_EdhUtQvRteaDpBIjpGQaAt_KEALw_wcB&gclsrc=aw.ds https://shop.nordstrom.com/c/olivia-kim https://shop.nordstrom.com/c/designer-shoes www.scad.edu - Library â&#x20AC;&#x201C;One Source