Nordstrom Six Month Buying Plan

SIX MONTH BUYING PLAN

Craegan Adamec Max Drury Hyewon Jeong Cookie Betances

Table of Contents 1 Company Profile & Analysis Mission Values History Identity Scope & Size Marketing/Promotions Product Price Sales Trends Customer Base

2 Market Place Analysis Market Size Market Segmentation Competitors Trends

3 Six Month Buying Plan SWOT Six Month Buying Plan Assortment Plan New Products & Collaboration

1 Company Profile & Analysis

JOHN W. NORDSTROM BELIEVED SUCCESS WOULD COME ONLY BY OFFERING CUSTOMERS THE VERY BEST SERVICE SELECTION, QUALITY, AND VALUE

Our Mission

Our primary mission is to please the customer; in store & online

Quality Service

Value Selection

The Founding Philosophy

Our Values

Our goal is simple - Serve our customers better - Always be relevant in their lives - To form lifelong relationships

Our History

John Nordstrom, used his Alaska Gold Rush money to open Wallin & Nordstrom shoe store in Seattle with shoemaker Carl Wallin

The shoe chain thrived and incorporated as Nordstrom’s

1901

1946 1928

Nordstrom retired in 1928 and sold his half of the business, which included a second store, to his sons Everett and Elmer

The company went public and changed its name again in 1973 to Nordstrom

1971 1963 Nordstrom becomes the largest independent shoe chain in the country

1995 Following the family’s business tradition, six members of Nordstrom’s fourth generation began running the company

Nordstrom created Nordstrom.com, a partnership with Benchmark Capital and Madrona Investment Group, in 1999 to consolidate its catalog and Internet operations

1998 2000 Amid slumping sales, the company dissolved the co-presidency

Nordstrom bought a majority interest in August 2005 in luxury specialty stores Jeffrey New York and Jeffrey Atlanta

2005

Nordstrom acquired e-tailer HauteLook for $180 million in stock

2011 2008

Nordstrom opened its first full-line department store in Hawaii

2014 Nordstrom opened its first Canada store at Chinook Centre in Calgary

Nordstrom Today

From one tiny shoe store, Nordstrom has grown into a leading fashion retailer with global reach

Our Identity

As a publicly traded company with more than 100 years of history, we've worked to deliver the best possible shopping experience, helping our customers express their style—not just buy fashion Nordstrom, Inc. is a leading fashion retailer offering compelling clothing, shoes and accessories for men, women and children

Scope & Size

Geographic Reach Nordstrom has some 345 fullline and Nordstrom Rack stores in 40 US states, as well as three Nordstrom full-line stores in Canada

Sales Annual Sales: 14B Total Assets: 8.1B Market Value: 7.7B

Locations Nordstrom: 123 Nordstrom Rack: 215 Trunk Club: 5 Jeffrey: 2 HauteLook.com

Number of Employment 76,000

Merchandise distribution centers 6 Portland, Oregon; Dubuque, Iowa; Ontario, California; Newark, California; Upper Marlboro, Maryland and Gainesville, Florida

Fulfillment center 3 Cedar Rapids, Iowa; Elizabethtown, Pennsylvania; San Bernardino, California

Headquarters Seattle, Washington

Administrative offices 3 Chicago, Illinois; Los Angeles, California and New York City, New York

Credit segment 1 Centennial, Colorado

Retail Segment

Geographic Segmentation

2016-17 Expansion

by net sales 2017 Jan 31

2016-2017 Expansion 250 200

4%

150 50%

46%

100 50 0

Canada 1173.5

United States 13583.5

United States and Canada 14757

Full-Line US

Full-Line CA 2016

Rack 2017

Other

Nordstrom Full-Line

Nordstrom Rack and other

Marketing/ Promotions

Marketing

Promotions

Social Media, E-commerce Data Mining, Pop Up Ads TV Commercials, In-store Events Partnerships, Pop-in at Nordstrom APP, Nordstrom Local

Clearance Black Friday Anniversary Sale Half-yearly Sale Rewards Exclusive Products Collaborations

Product

Women Clothing Shoes Handbags Accessories Jewelry

Beauty

Men Clothing Shoes Accessories Grooming

Kids Girls Boys Baby

Home & Gifts Bath Bedding Home Decor Nursery Kitchen Electronics & Tech Luggage & Travel

Make up Skincare Fragrance Hair Bath & Body Wellness

Product

Private Label BP. Halogen 1901 Nordstrom Men’s Shop Treasure & Bond Zella

Leith Calson Tucker + Tate Chelsea28 Essentials for Men

Price

Price Strategy - High quality products with higher price point - Customer service for our value and customer experience - Offering different price points - Responding to changes in consumer demands - Same price in store and online - Price adjustments to match competitors

Sales Trends

Financial Data 2017

2016

2015

2014

2013

$15,137

$14,498

$14,095

$13,110

$12,166

341

259

342

396

374

5,247

5,058

4,927

4,704

4,429

(4,662)

(4,315)

(4,168)

(3,777)

(3,453)

Earnings before interest and income taxes

926

805

1,101

1,323

1,350

Net earnings

437

354

600

720

734

Net sales Credit card revenues, net Gross profit Selling, general and administrative expenses

2017 Sales by division 2017

2016

2015

$6,951

$7,186

$7,633

Nordstrom.com

2,887

2,519

2,300

Full-price

9,838

9,705

9,933

Nordstrom Rack

4,059

3,809

3,533

897

700

532

4,956

4,509

4,065

614

554

378

15,408

14,768

14,376

(271)

(270)

(281)

$15,137

$14,498

$14,095

Nordstrom full-line stores U.S.

Nordstromrack.com/HauteLook Off-price Other retail Retail segment Corporate/Other Total

Product Category 2017

2016

2015

Women’s Apparel

32%

32%

31%

Shoes

23%

23%

23%

Men’s Apparel

16%

17%

17%

Women’s Accessories

11%

11%

12%

Beauty

11%

11%

11%

Kid’s Apparel

4%

3%

3%

Other

3%

3%

3%

Total

100%

100%

100%

Customer Base

Classic Independent Fashion Conscious Driven

Demographics

Brand Diversity

Age Range 16-65 Male & Female Targeting Millennials

Topshop Ted Baker Vince Eileen Fisher

Customer Behavior Willing to pay for quality Buys for preference & trends

Women's Athletic/ Sneakers

2 Market Place Analysis

Sneakers Obsession "These influences of the hip hop culture, the skate culture and other celebrity culture are really becoming the mainstream curators of what's cool and that's translated into footwear."

Michelle Grant Head of Retail at Euromonitor International

Market Size

A rising tide of consumer interest pushed sneakers to the top of the hot product list, and limited edition collections kept them there as brands jockey for position.

While the footwear market as a whole grew only 13% in 2017, sports footwear grew by an astonishing 46%, according to data from Euromonitor International.

Number of people who shopped for shoes at Nordstrom past couple years in the United States ( in millions) Spring 2017 Athletic Footwear 14%

Leather Footwear 53%

5.05

Spring 2016 Spring 2015

Spring 2013 Spring 2012 Spring 2011 Spring 2010 Spring 2009

Footwear revenues by segments worldwide in 2017

5.46

5.86 5.62 5.6 5.78 5.93 6.07 5.64 5.58 5.89 5.68 5.4 5.65 6.09 6.29 6.34 6.65

Spring 2014 Sandals, Textile and Other Footwear 33%

5.41

Spring 2008 0.

1.

2.

3.

4.

Number of people in millions

5.

6.

7.

Womens Casual Shoe Market Over the last couple of years, the wage gap between men and women has decreased, allowing women to have more disposable income. More women can afford luxurious and costly brands, allowing them financial independency. This creates a lucrative market for women's casual shoes.

Households in the United States on women's shoes during the past 12 month in 2017 Household income of $200,000 or more

0.0%

5.0%

10.0%

15.0%

Household income $125,000 or more*

Share of respondents 20.0%

25.0%

29.7%

Under $250

40.0%

35.5%

23% 22.3%

$250 to $499 $500 to $999

9%

$1,000 to $1,999

4.3%

10.9%

5.7%

2% 1.5%

$2,000 to $2,999

$5,000 to $9,999

35.0%

26.8% 26.1%

None

$3,000 to $4,999

30.0%

1.2% 0.7% 0.6% 0.4%

$10,000 to $14,999

0.2% 0.1%

$15,000 or more

0.1% 0.1%

The women casual shoes market is expected to grow steadily in future owing to the seasonal trends, increasing use of online shopping, awareness about ecoshoes and changing lifestyle of the consumers.

Market Segmentation

23.1B

15.3B

1.6B

Brand 1.1B

Sport shoe company sales in 2017 With more than US $ 23 .1bn, Nike has by far the highest footwear sales

Price

The average price per unit in the market for Footwear amounts to US$34.70 in 2018.

Frequency of purchasing sports shoes online and in store in the U.S. 2016 in % 45.

39.43

40.

35.

30.

26.72

25.

22

21.49

20.

14.69

15.

10.

5.

0.

20.11

11.64 6.31

5.08

4.73

6.15

More than once Once every month every month

11.09

6.69 3.87

Once every 3 months

Once every 6 months Online

Once every year

Less than once every year

This statistic shows how often consumers in the United States purchased sports shoes online and in store in 2016. During the survey, 4.73 percent of the respondents said they purchase sports shoes online once every month.

Never

In store

Purchasing behavior

United States: Women's brand preferences for women's athletic shoes in 2016, by age group The results were sorted by age group. During the survey, 33 percent of women between 18 and 34 years of age stated their preferred women's athletic shoes brand is Nike; 26.7 percent of women aged 35 to 49 and 15.4 percent of women aged 50 or older said the same.

Easy Spirit Reebok Dr. Scholl's New Balance Puma Asics Under Armour Skechers Converse Adidas Nike 0

Age

10

20 Women aged 18-34

30

40

Women aged 35-49

50

60

Women aged 50 and older

70

80

Nordstrom has a stronghold on digital sales and remains proudly ahead of the curve when it comes to integrating its offline and online experiences

Trends

Trend 1: Athleisure The Athleisure trend has driven retailers to the creation of their own collection, the term is even being added to the dictionary. The “sport leisure� style has become the largest category in the U.S. according to a study released this week by market research firm NPD Group. Sport leisure styles surged 17% last year to $9.6 billion in sales, sales of performance apparel tumbled 10% to $7.4 billion.

Footwear segment revenue of Nike, Adidas & Puma 2010-2017 25.

20.

15.

10.

5.

0.

2010

2011

2012 Nike*

2013 Adidas**

2014

2015

Puma**

2016

2017

Trend 2: Embellished Sneakers Embellished trims develop prominent glitter trends, renewing core designs with an elegant twist. Refined beads, sparkling diamantĂŠs, leather patches and precious gemstones are used to decorate women's sneaker uppers. Natural crystals and grand gemstones provide a premium look for oversized sole designs, whereas intricate beading offers a crafted tribal effect.

Trend 3: Exclusive collaborations Collaborations are in place to create a more personalized product to our recurring customer. We understand the importance of placing their needs and wants before anything else and with this the collaborations look incorporate the brands with the customer at a more personalized level.

Pop-In Nordstrom Pop-In at Nordstrom is a new way of sharing brand identity and seasonal products to specific locations around the states. With this shopper experience inside the stores we wish to spread an idea of the customer and brand lifestyle as well as a customer and brand bond.

Nordstrom X Nike

Nordstrom X Allbirds

Trend 4: Customer Experience During the past years, customer experience has been of great growth in retail and online business. It’s the understanding that profits are determined and viewed at a faster rate through the results of customer experience and returns. Last Year 75% of companies said top objective was to improve customer experience. Nordstrom is already a customer-driven retail that understands the value the customer has over sales.

Nordstrom Local Local is a hybrid between retail and e-commerce while hinting into a more personalized and efficient shopping experience.

Making the customers experience more personal and fast. This is of proof to the customer that we don’t only value their loyalty, but we also value their time.

Nordstrom App The Nordstrom App wishes to expand the customer experience while having the opportunity to shop online through your phone with a customer service representative available at all times and the easy access everywhere and anywhere you are.

Competitors

Saks Fifth Avenue is the successor of a business founded

by Andrew Saks in 1867 and incorporated in New York in 1902 as Saks & Company Company Type: Private Annual Sales : 1.4B Locations: 39 22 states 250

Slip-On Round Toe

200

Pull-On Platform

150

Low Top

100

Lace-Up High Top

50

Fashion Sport Athletic 0

50

100

150

200

Shoe type

250

300

350

0

Under $50

$50-$150

$150-$300

$300-$500

Price range

$500-$1000 $1000-$2000

What we do better?

Online sales, Larger inventories, Website design, Customer service, Amount of locations, Store environment, Mobile App Multiple types of customer

What they do better?

Wins in luxury product Identifying individual customer

The first retail endeavor of the Bloomingdale brothers was a Ladies’ Notion Shop in New York. In 1872, Bloomingdale’s opened and expanded their East Side Bazaar, selling a variety of women’s fashions.

Company Type: Private Annual sales: 1.5B Locations: 54 12 states 300 Active

250 Slip-Ons

200

Lace-Ups

150 100

Low Tops

50

Fashion 0

100

200

300

400

Shoe type

500

600

0

Under $50

$50-$100

$100-$250

$250-$500

Price range

$500-$1000 $1000 & Over

What we do better?

Better customer services (Return policies/ Customer loyalty program) Wider price range More item quantities

What they do better?

Store environment and atmosphere

Neiman Marcus, founded in 1907 by Herbert Marcus Sr. Neiman Marcus Group Ltd LLC is an Omni-channel fashion retailer.

Annual sales: 4.7B Locations: 42 18 states

300 Trainer/Runner

250 Slip On

200 Skater

150 Low Top

100 High Top

50 Athletic

0 0

50

100

150

200

250

Shoe type

300

350

400

Under $150

$150-$299

$300-$499

$500-$999

Price range

$1000-$1999 $2000-$4999

What we do better?

Stable sales Wide price range Larger athletic shoes inventories

What they do better?

Strong and well-known luxury brand Customer loyalty program Better commitment give back to community

3 Six Month Buying Plan

SWOT

S

Variety of Brands & Private Labels

(Strong brand and private labels includes apparel, shoes, accessories,handbags, bath and beauty products , and home accents)

Operational Network

(344 stores in 40 states in the US with 6 distribution centers and 2 fulfillment centers. 1 data center)

Steady Revenue Growth

(Increase in online channels and Nordstrom Rack)

W

Declined Profitability Decline in turnover ratio and higher inventory turnover Involvement in a Lawsuit and legal proceedings

O

Growth & expansion in the E-Commerce Expansion in the Retail Market

(Investment in new store openings, relocations, remodels and technologies)

Increase in consumer spending (Growing personal income, disposable income)

Competitors

(Highly competitive industry, such as Saks,

T

Dillard's, JC penny, Neiman Marcus, and Macy's)

Increase in employee/manpower Pay

(Increase in minimum wage and higher proportion of full-time employees)

Changes in consumer wants

Six Month Buying Plan

Six Month Buying Plan Planned sales SS 2019 = $88,455,940 Last year sales = $83,057,221 6.5% increase Sales to stock = 2.8 Reductions = $17,691,188

Buying Plan

Reductions Distribution $25,000,000 $20,000,000 $15,000,000 $10,000,000

6 month buying plan Sales TY Sales (LY) % Planned Increase Sale-to-Stock Planned EOM for Period Initial Markup % Reductions $ Planned Reductions %

SALES DISTRIBUTION REDUCTIONS DISTRIBUTION PLANNED MONTHLY SALES PLANNED MONTHLY BOM PLANNED MONTHLY EOM PLANNED MONTHLY REDUCTIONS PLANNED PURCHASES AT RETAIL PLANNED PURCHASES AT COST

$ 88,455,940 $ 83,057,221 6.5% 2.8 $ 43,095,734 54% $ 17,691,188 20% FEB

13% 5% $ 11,499,272 $ 32,197,962 $ 29,721,196 $ 884,559 $ 9,907,065 $ 4,557,250

$5,000,000 $-

MAR

12% 5% $ 10,614,713 $ 29,721,196 $ 42,105,028 $ 884,559 $ 23,883,104 $ 10,986,228

APR

17% 10% $ 15,037,510 $ 42,105,028 $ 47,058,560 $ 1,769,119 $ 21,760,161 $ 10,009,674

FEB

MAR

MAY

19% 20% $ 16,806,629 $ 47,058,560 $ 39,628,261 $ 3,538,238 $ 12,914,567 $ 5,940,701

APR

JUNE

MAY

16% 30% $ 14,152,950 $ 39,628,261 $ 56,965,626 $ 5,307,356 $ 36,797,671 $ 16,926,929

JUNE

JULY

JULY

Totals

23% 30% $ 20,344,866 $ 56,965,626 $ 43,095,734 $ 5,307,356 $ 11,782,331 $ 117,044,900 $ 5,419,872

Assortment Plan

TOP BRANDS Nike

Nike

Athletic

Ecco

Casual

Nike

Comfort

Limited

Assortment

$ % TTL Athletic

Casual

Comfort

6%

80%

9%

recipts plan $

$

$

7,022,694

93,635,920

10,534,041

117,044,900

$

# of units 91,000

1,078,200

154,200

brand

Total

5%

$

5,852,245

$ 117,044,900

17,200

1,340,600

% of brand

recipts of brand

Nike

34%

$

2,387,716

Adidas

16%

$

1,123,631

Brooks

14%

$

983,177

Others

36%

$

2,528,170

Nike

17%

$

15,918,106

Converse

8%

$

7,490,874

Ecco

7%

$

6,554,514

Others

68%

$

63,672,426

Ecco

32%

$

49,344

New Balance

18%

$

27,756

9%

$

13,878

Others

41%

$

63,222

Nike

18%

$

3,096

Adidas

11%

$

1,892

Others

30%

$

5,160

Geox

Limited

88,455,940 tier all door mid door top door all door mid door top door all door mid door top door all door mid door top door all door mid door top door all door mid door top door all door mid door top door all door mid door top door all door mid door top door all door mid door top door all door mid door top door all door mid door top door all door mid door top door all door mid door top door all door mid door top door

% of tiers

recipts of brand by tiers 60% 31% 9% 58% 32% 10% 57% 32% 11% 60% 30% 10% 64% 27% 9% 60% 32% 8% 56% 31% 13% 60% 30% 10% 50% 32% 18% 61% 33% 6% 62% 29% 9% 60% 30% 10% 0% 12% 88% 0% 9% 91% 0% 14% 86%

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

1,432,630 740,192 214,894 1,384,875 764,069 238,772 1,360,998 764,069 262,649 1,432,630 716,315 238,772 1,528,138 644,683 214,894 1,432,630 764,069 191,017 1,337,121 740,192 310,403 1,432,630 716,315 238,772 1,193,858 764,069 429,789 1,456,507 787,946 143,263 1,480,384 692,438 214,894 1,432,630 716,315 238,772 286,526 2,101,190 214,894 2,172,822 334,280 2,053,436

avg at retail price

units

# of styles

units per style

doors

units per door

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

70 110 140 75 125 160 75 115 130 73 117 143 80 140 160 75 95 135 100 140 180 78 138 147 100 140 160 90 120 140 100 145 180 97 135 160

20,466 6,729 1,535 18,465 6,113 1,492 18,147 6,644 2,020 19,536 6,140 1,666 19,102 4,605 1,343 19,102 8,043 1,415 13,371 5,287 1,724 18,367 5,178 1,628 11,939 5,458 2,686 16,183 6,566 1,023 14,804 4,775 1,194 14,769 5,306 1,492

7 5 3 6 4 2 5 3 1 6 4 2 8 6 4 7 5 3 6 4 2 7 5 3 9 7 5 8 6 4 9 7 5 10 8 6

2,924 1,346 512 3,078 1,528 746 3,629 2,215 2,020 3,256 1,535 833 2,388 767 336 2,729 1,609 472 2,229 1,322 862 2,624 1,036 543 1,327 780 537 2,023 1,094 256 1,645 682 239 1,477 663 249

123 58 27 123 55 24 123 55 24 123 56 23 123 54 26 123 55 24 123 55 24 123 56 27 123 56 25 123 54 25 123 53 26 123 57 22

24 23 19 25 28 31 30 40 84 26 27 36 19 14 13 22 29 20 18 24 36 21 18 20 11 14 21 16 20 10 13 13 9 12 12 11

$ $

190 190

1,508 11,059

5 3

302 3,686

54 23

6 160

$ $

170 170

1,264 12,781

3 2

421 6,391

54 23

8 278

$ $

200 200

1,671 10,267

4 6

418 1,711

54 23

8 74

Loyd

Athletic 6%

Limited Comfort 7% 8%

Seattle, WA Casual 79%

Loyd Athletic

Casual

% TTL 6% $

reciots plan sales 199,833 $

151,022

79% $

2,631,131

$

1,988,461

Comfort

8% $

266,444

$

201,363

Limited

7% $

233,138

$

176,193

100% $

3,330,546

$

2,517,039

% TTL 7% $

recipts plan 116,569

Total

Elmer Athletic

sales $

106,974

brand # of units 34000 Nike Adidas Brooks Others 559000 Nike Converse Ecco Others 71400 Ecco New Balance Geox Others 11467 Nike Adidas Others 675867

brand # of units 30000 Nike Adidas Brooks Others

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

recipts of brand by tiers 214,894 238,772 262,649 238,772 214,894 191,017 310,403 238,772 429,789 143,263 214,894 238,772 2,101,190 2,172,822 2,053,436

$ $ $ $

recipts of brand by tiers 740,192 764,069 764,069 716,315

units 1,535 1,492 2,020 1,666 1,343 1,415 1,724 1,628 2,686 1,023 1,194 1,492 11,059 12,781 10,267

# of styles 3 2 1 2 4 3 2 3 5 4 5 6 3 2 6

units per style 512 746 2,020 833 336 472 862 543 537 256 239 249 3,686 6,391 1,711

doors

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

avg at retail price 140 160 130 143 160 135 180 147 160 140 180 160 190 170 200

units 6,729 6,113 6,644 6,932

# of styles

units per style 1,346 1,528 2,215 1,733

doors

$ $ $ $

avg at retail price 110 125 115 103

5 4 3 4

27 24 24 23 26 24 24 27 25 25 26 22 23 23 23

units per door 19 31 84 36 13 20 36 20 21 10 9 11 160 278 74

58 55 55 56

units per door 23 28 40 31

Loyd

Elmer

Athletic

Casual

% TTL 6% $

reciots plan sales 199,833 $

151,022

Towson, MD

79% $

2,631,131

$

1,988,461

Comfort

8% $

266,444

$

201,363

Limited

7% $

233,138

$

176,193

100% $

3,330,546

$

2,517,039

% TTL 7% $

recipts plan 116,569

Casual

80% $

1,332,218

$

1,222,562

Comfort

10% $

166,527

$

152,820

Limited

3% $

41,632

$

38,205

100% $

1,665,273

$

1,528,202

% TTL 7% $

recipts plan 49,958

Total

Elmer Athletic

Total

Everette Athletic

sales $

sales $

106,974

37,756

brand # of units 34000 Nike Adidas Brooks Others 559000 Nike Converse Ecco Others 71400 Ecco New Balance Geox Others 11467 Nike Adidas Others 675867

brand # of units 30000 Nike Adidas Brooks Others 359400 Nike Converse Ecco Others 51400 Ecco New Balance Geox Others 5733 Nike Adidas Others 446533

brand # of units 27000 Nike Adidas Brooks Others

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

recipts of brand by tiers 214,894 238,772 262,649 238,772 214,894 191,017 310,403 238,772 429,789 143,263 214,894 238,772 2,101,190 2,172,822 2,053,436

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

recipts of brand by tiers 740,192 764,069 764,069 716,315 644,683 764,069 740,192 716,315 764,069 787,946 692,438 716,315 286,526 214,894 334,280

$ $ $ $

recipts of brand by tiers 1,432,630 1,384,875 1,360,998 1,432,630

doors

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

avg at retail price units # of styles units per style Athletic Limited Comfort 1,535 140 3 512 3% 7% 746 160 10% 1,492 2 130 2,020 1 2,020 143 1,666 2 833 160 1,343 4 336 135 1,415 3 472 180 1,724 2 862 147 1,628 3 543 160 2,686 5 537 140 1,023 4 256 Casual 180 1,194 5 239 160 1,492 680% 249 190 11,059 3 3,686 170 12,781 2 6,391 200 10,267 6 1,711

27 24 24 23 26 24 24 27 25 25 26 22 23 23 23

units per door 19 31 84 36 13 20 36 20 21 10 9 11 160 278 74

units 6,729 6,113 6,644 6,932 4,605 8,043 5,287 5,178 5,458 6,566 4,775 5,306 1,508 1,264 1,671

# of styles 5 4 3 4 6 5 4 5 7 6 7 8 5 3 4

units per style 1,346 1,528 2,215 1,733 767 1,609 1,322 1,036 780 1,094 682 663 302 421 418

doors

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

avg at retail price 110 125 115 103 140 95 140 138 140 120 145 135 190 170 200

58 55 55 56 54 55 55 56 56 54 53 57 54 54 54

units per door 23 28 40 31 14 29 24 18 14 20 13 12 6 8 8

units 20,466 18,465 18,147 15,918

# of styles

$ $ $ $

avg at retail price 70 75 75 90

7 6 5 6

units per style 2,924 3,078 3,629 2,653

doors 123 123 123 123

units per door 24 25 30 22

Total

100% $

3,330,546

Everette

Elmer

Athletic

% TTL 7% $

recipts plan 116,569

$

sales $

2,517,039

106,974

Jacksonville, FL

Casual

80% $

1,332,218

$

1,222,562

Comfort

10% $

166,527

$

152,820

Limited

3% $

41,632

$

38,205

100% $

1,665,273

$

1,528,202

% TTL 7% $

recipts plan 49,958

Casual

83% $

592,361

$

447,673

Comfort

10% $

71,369

$

53,937

Limited

0% $

-

$

-

Total

Everette Athletic

Total

100% $

713,688

sales $

$

37,756

539,365

675867

Adidas Others

brand # of units 30000 Nike Adidas Brooks Others 359400 Nike Converse Ecco Others 51400 Ecco New Balance Geox Others 5733 Nike Adidas Others 446533

brand # of units 27000 Nike Adidas Brooks Others 159800 Nike Converse Ecco Others 31400 Ecco New Balance Geox Others 0 Nike Adidas Others 218200

$ $

2,172,822 2,053,436

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

recipts of brand by tiers 740,192 764,069 764,069 716,315 644,683 764,069 740,192 716,315 764,069 787,946 692,438 716,315 286,526 214,894 334,280

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

recipts of brand by tiers 1,432,630 1,384,875 1,360,998 1,432,630 1,528,138 1,432,630 1,337,121 1,432,630 1,193,858 1,456,507 1,480,384 1,432,630 -

$ $

170 200

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

avg at retail price 110 125 115 103 140 95 140 138 140 120 145 135 190 170 200

$ $ $ $ $ $ $ $ $ $ $ $

avg at retail price 70 75 75 90 80 75 100 78 100 90 100 97

12,781 10,267

Limited units 0%6,729

2 6

# of styles

6,113 Comfort 6,644 10% 6,932 4,605 8,043 5,287 5,178 5,458 6,566 4,775 5,306 1,508 1,264 1,671

units 20,466 18,465 18,147 15,918 19,102 19,102 13,371 18,367 11,939 16,183 14,804 14,769

5 4 3 4 6 5 4 5 7 Casual 6 83% 7 8 5 3 4

# of styles 7 6 5 6 8 7 6 7 9 8 9 10

6,391 1,711

23 23

278 74

Athletic units per style 7% 1,346

doors

1,528 2,215 1,733 767 1,609 1,322 1,036 780 1,094 682 663 302 421 418

58 55 55 56 54 55 55 56 56 54 53 57 54 54 54

units per door 23 28 40 31 14 29 24 18 14 20 13 12 6 8 8

units per style 2,924 3,078 3,629 2,653 2,388 2,729 2,229 2,624 1,327 2,023 1,645 1,477

doors 123 123 123 123 123 123 123 123 123 123 123 123

units per door 24 25 30 22 19 22 18 21 11 16 13 12

New Products/ Collaboration

Anya Hindmarch Anya Hindmarch is a British designer known for her patchwork and embellishments. Her eponymous label “Anya Hindmarch” as to offer from her main lines of handbags to shoes, luggage, leather goods, beach, & a small ready-to-wear collection.

We think Anya Hindmarch fits the Nordstrom demographic perfectly. We already sell most of her handbags and leather goods so venturing into the sneaker department is not much of a risk. Our competitors like Barneys and Neiman’s already carry the products line. Their prices range from 160 dollars a pair to 500 dollars pair.

Smiley Wink Leather Sneakers $ 295

Apex Leather Sneakers $450

All Over Stickers Sneakers $625

Veja A brand that is socially and culturally relevant. They stand by sustainability and the power of actions, not words. Today the customer is growing more into this mentality and their beliefs on the impact that we have in our environment when it comes to fashion.

Their prices range from an 80 dollar pair of sneaker to a 500 dollar pair. Our competitors already offer the brand while limiting it to a few models while we could branch out first through a Nordstrom Pop-Up and lead in from there to test the customers wants and needs.

Wata Canvas Sneakers $90

Low-top Sneakers $121

3-Lock Logo Sneakers $135

Nike X Rocky Barnes Our collaboration with Nike wishes to eliminate the thin line between athletic and fashion.

Nordstrom x Nike houses limited-edition products introduced each month, curated collections of activewear, performance and lifestyle footwear, accessories, tech and more.

The idea to collaborate with Rocky Barns is to bring in the lifestyle and influence of the it girl today. This girl is laid back and trendy which is a perfect correlation to Rocky Barns fresh and casual feel.

Our Future

Throughout our allocations of budget for all of our stores, our buying decisions reflect the increased popularity of women's sneakers. Our plan for each tier of store will promise stronger sales and increase our footprint in the sneaker market.

Reference Annual Report. (n.d.). Retrieved from http://investor.nordstrom.com/phoenix.zhtml?c=93295&p=irol-irhome Chairman's Circle at Neiman Marcus. (n.d.). Retrieved from https://www.incircle.com/category.jsp?itemId=cat105007&parentId=cat103411&masterId=cat000001 Cheng, A. (2018, February 09). The Athleisure Trend Isn't Taking A Rest Break. Retrieved from https://www.forbes.com/sites/andriacheng/2018/02/09/ here-are-some-more-signs-athleisure-trend-still-has-legs/#1d8b2a6f33cb Cheng, A. (2018, February 09). The Athleisure Trend Isn't Taking A Rest Break. Retrieved from https://www.forbes.com/sites/andriacheng/2018/02/09/ here-are-some-more-signs-athleisure-trend-still-has-legs/#1d8b2a6f33cb Favorite sports apparel brands of consumers in the U.S. 2016, by gender (n.d) Retrieved from https://www.statista.com/statistics/640867/ favorite-sports-apparel-brands-of-us-consumers-by-gender/ Footwear in US (n.d) Retrieved from https://0-www.statista.com.library.scad.edu/outlook/11000000/109/footwear/united-states# Gender pay gap in the United States. (2018, April 26). Retrieved from https://en.wikipedia.org/wiki/Gender_pay_gap_in_the_United_States#/media/File:US_womens_ earnings_as_a_percentage_of_mens_1979-2005.svg Ipsos. (n.d.). Expenditure of affluent households in the United States on women's shoes during the past 12 months in 2017. In Statista - The Statistics Portal. Retrieved May 1, 2018, from https://www.statista.com/statistics/240978/expenditure-of-affluent-us-households-on-womens-shoes/ Johns, N. (2018, April 04). The New Shoe Floor at Bloomingdale's Is Massively Impressive. Retrieved from http://footwearnews.com/2018/business/retail/ bloomingdales-new-york-flagship-shoe-floor-renovation-1202545241/ Nordstrom Online & In Store: Shoes, Jewelry, Clothing, Makeup, Dresses. (n.d.). Retrieved from https://shop.nordstrom.com/ Nordstrom Rewards Benefits. (n.d.). Retrieved from https://shop.nordstrom.com/c/rewards-benefits?breadcrumb=Home/Nordstrom Rewards/Benefits Nordstrom Stock Falls as Proposal to Go Private Fails. (n.d.). Retrieved from https://marketrealist.com/2018/03/nordstrom-stock-falls-as-proposal-to-go-private-fails Nordstrom's Target Customers. (n.d.). Retrieved from https://marketrealist.com/2015/02/nordstroms-target-customers McCall, T. (2016, July 28). How Shoes of Prey's Design Technology Could Change the Way We Shop. Retrieved from https://fashionista.com/2016/07/ shoes-of-prey-technology Morgan, B. (2017, December 08). Five Trends Shaping The Future Of Customer Experience In 2018. Retrieved from https://www.forbes.com/sites/blakemorgan/2017/12/05/ five-trends-shaping-the-future-of-customer-experience-in-2018/#591d9b682d9c MSW-ARS Research/The Brand Strength Monitor. (n.d.). United States: Women's brand preferences for women's athletic shoes in 2016, by age group. In Statista - The Statistics Portal. Retrieved May 1, 2018, from https://0-www.statista.com.library.scad.edu/statistics/623499/us-women-s-brand-preferences-for-women-s-athletic-shoesage-group/ R. (n.d.). Home. Retrieved from http://www.364analyze.com/2018/04/25/women-casual-shoes-market-to-perceive-substantial-growth-by-2025/ Rose, C., Zaratian, E., Nguyen, D., & Katie Christian. (2018, February 21). Meet the Dogs: Behind the Scenes with Our Pop-In Stars. Retrieved from https://blogs.nordstrom. com/fashion/category/pop-in-at-nordstrom/ Salpini, C. (2018, March 28). What's driving retail's sneaker obsession? Retrieved from https://www.retaildive.com/news/whats-driving-retails-sneaker-obsession/518625/ Statista Survey. (n.d.). How often do you purchase sports shoes online and in store?. In Statista - The Statistics Portal. Retrieved from https://0-www.statista.com.library.scad. edu/statistics/631247/frequency-of-purchasing-sports-shoes-online-and-in-store/

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