Nordstrom Buying Plan

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