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
Each region has a buyer who orders merchandise for just a small group of stores. That 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.
We have seen lately that even though Nordstrom’s actual customers are not very diverse, the company is pushing diversity and inclusion through their advertising campaigns. Two good examples for this matter, are the “Fall 2017, People that inspire us” and ”Love, Nordstrom” campaigns.
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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 you want to purchase. It would work as an extension of Reserve Online & Try In Store, just that this time you 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.
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
*Percentages based on Nordstrom Full-Line Stores Net Sales 2016
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
*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 planning 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 beremodeled 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 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. They were 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.
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/