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COMPANY PROFILE Mission Statement Overview of Company Store Overview Customer Profiles
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COMPANY Marketplace Competitors SWOT Analysis Trends in Eveningwear
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BUYING PLAN 6 Month Buying Plan Individual Stores Assortment Plans
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FINAL NOTES Risk and Opportunity Sources of Information Meet the Buyers
Mission Statement
NORDSTROM AIMS TO INSPIRE CUSTOMERS AND CREATE AN EXCEPTIONAL SHOPPING EXPERIENCE, BY PROVIDING A VARIETY OF HIGH QUALITY PRODUCTS WITH THE CUSTOMER’S NEEDS AND EXPECTATIONS IN MIND.
overview of company
NORDSTROM FIRST STARTED AS A SMALL SHOE COMPANY IN 1901 BY JOHN W. NORDSTROM. THE COMPANY HAS GROWN AN EXCESSIVE AMOUNT IN THE PAST 114 YEARS. TODAY, NORDSTROM OFFERS MUCH MORE PRODUCTS. THE CATEGORIES NORDSTROM OFFERS ARE WOMEN’S APPAREL, MEN’S APPAREL, ACCESSORIES, FRAGRANCE AND BEAUTY, CHILDRENS WEAR, SHOES, AND HOME. NOT ONLY DOES NORDSTROM OFFER THIS WIDE SELECTION OF PRODUCTS, IT ALSO OFFERS A GREAT VARIETY OF BRANDS. JUST A FEW OF THE TOP BRANDS AT NORDSTROM ARE BURBERRY, KATE SPADE NEW YORK, DVF, JIMMY CHOO, PRADA, AND CHANEL.
Store Overview
NORDSTROM IS A COMPANY WITH OVER $13 BILLION IN REVENUE. IT HAS A PRESENCE IN 38 STATES, 117 “BRICK AND MORTAR” STORES, AND 173 OFF-PRICE “RACK” LOCATIONS. IT ALSO HAS TWO STORES IN CANADA.
THE CHAIN REACHES THOUSANDS OF CONSUMERS IN MORE THAN 93 COUNTRIES THROUGH NORDSTROM.COM.
NORDSTROM SHOPPERS TODAY HAVE THE ABILITY TO INTERACT WITH THE STORE THROUGH THE NORDSTROM APP, WEBSITE, FASHION BLOGS, AND SOCIAL MEDIA. THE COMPANY’S INTEGRATED OMNI CHANNEL PARTICIPATION IN THE FASHION MARKET IS PROBABLY THE MAIN REASON OF ITS CONTINUOUS SUCCESS.
customer profiles NORDSTROM’S WIDE TARGET MARKET DRAWS IN A VARIETY OF CUSTOMERS. THE BEST WAY TO UNDERSTAND THE NORDSTROM CUSTOMER IS TO UNDERSTAND THE VALUES, ATTITUDES, AND LIFESTYLES OF THE PEOPLE WHO SHOP IN THIS DEPARTMENT STORE.
customer profile: achievers ACHIEVERS ARE THE LARGEST GROUP OF SHOPPERS AT NORDSTROM’S. THEY HAVE GOAL-ORIENTED LIFESTYLES AND CARE DEEPLY ABOUT THEIR FAMILIES AND CAREERS. FOR THESE CUSTOMERS, THEY PREFER ESTABLISHED PRODUCTS AND SERVICES THAT PROVE SUCCESS TO THEIR PEERS. ACHIEVERS TEND TO LIVE BUSY LIVES AND ARE DRIVEN BY RECOGNITION, REWARDS, AND MATERIAL POSSESSIONS.
customer profile: innovators THE INNOVATORS OF NORDSTROM’S ARE VIEWED AS SUCCESSFUL, SOPHISTICATED, AND CONFIDENT. THEY TEND TO BE THE LEADERS OF CHANGE, AND ARE MOST RECEPTIVE OF NEW IDEAS AND TECHNOLOGIES. AS A CUSTOMER, THE INNOVATOR LOOKS FOR THE UPSCALE NICHE PRODUCTS AND SERVICES THAT NORDSTROM’S PROVIDES.
customer profile: Experiencers
EXPERIENCER’S ACCOUNT FOR THE YOUNGER DEMOGRAPHIC OF NORDSTROM’S CUSTOMER BASE. THESE IMPULSIVE CONSUMERS ARE MOTIVATED BY SELF-EXPRESSION AND THE POSSIBILITY OF NEW PRODUCTS AND DESIGNS. THEY ARE WILLING TO SPEND A LARGE SUM OF THEIR INCOME ON FASHION, ENTERTAINMENT, AND SOCIALIZING, CONSTANTLY LOOKING FOR “COOL” PURCHASES.
customer profiles:
Thinkers
THINKERS ARE MOTIVATED BY IDEALS, KNOWLEDGE, AND RESPONSIBILITY. THEY TEND TO BE WELL EDUCATED AND ACTIVE IN SEEKING INFORMATION. WHEN SHOPPING, THINKERS ARE CONSERVATIVE, PRACTICAL AND LOOKING FOR FUNCTIONALITY AND VALUE.
customer profiles:
Strivers
THE SMALLEST GROUP OF CONSUMERS ARE THE STRIVERS. STRIVERS ARE MOTIVATED BY ACHIEVEMENT AND ARE CONCERNED ABOUT THE OPINIONS OF OTHERS. THEY PREFER STYLISH PRODUCTS THAT EMULATE THE PURCHASES OF THOSE MORE WEALTHY. BECAUSE OF THIS, THEY USE SHOPPING TO DEMONSTRATE THEIR ABILITY TO BUY, PUTTING THEM AT POSSIBLE FINANCIAL RISK.
swot analysis
strengths: Nordstrom’s values building strong client relationships. Because of this, they have received high customer satisfaction, which demonstrates their willingness to support their customers. Nordstrom always strives to offer prices in competition with other large department stores. They will gladly meet the competitor’s price if an item is available elsewhere, at a lower price. To support their sales associates, Nordstrom provides their employees with iPhone’s and iPad’s. These allow employees to help customers find products that may be available online.
weaknesses: Because of its department store setting, the younger generation views Nordstrom’s as being a store designed for older generation. This perceived image deters many shoppers from entering Nordstrom’s. Based on reviews, Nordstrom has had many complainants about their online customer service. Some shoppers feel that they are not receiving the same service and knowledge that they would in the store environment. As many stores may experience, it is difficult to keep a consistency between store locations. Nordstrom’s struggles to make sure that all their stores have a similar look and feel to the store environment.
opportunites: With Nordstrom’s continued growth, there is an increased need for more locations. With two stores located in Canada, there is an opportunity for openings in more international locations. In comparison with other similar department stores, Nordstrom’s is in need of a stronger website. Because of their ecommerce success, Nordstrom’s needs to expand improve of its product presentation online. By expanding their customer demographics, Nordstrom’s can improve their perceived image. This will bring in a wider range of consumers that never before envisioned themselves being loyal customers of Nordstrom’s.
threats: Many other department stores reaching the same demographic are seen as threats for Nordstrom’s. Stores like Saks Fifth Avenue and Bloomingdales provide similar products to consumers, and pull from Nordstrom’s target market. Because of how many products Nordstrom’s carries, it is a concern that these goods will be offered elsewhere. Competitors are constantly working to provide a wider variety of selection and at better prices. Due to ever changing trends, it is important that Nordstrom’s buyers stay on top of the upcoming trends for the new season. Forecasting these trends is imperative to keep new newest looks from the runway coming into the stores.
nordstrom’s competitors
LIKE EVERY BUSINESS, NORDSTROM HAS STRONG COMPETITORS. FOUR OF THE TOP COMPETITORS ARE NEIMAN MARCUS, SAKS FIFTH AVENUE, BLOOMINGDALE’S, AND MACY’S. THESE STORES ARE NORDSTROM’S BIGGEST COMPETITORS BECAUSE THEY OFFER A VARIETY OF PRODUCTS AND BRANDS JUST LIKE NORDSTROM.
neiman marcus
Neiman Marcus, just like Nordstrom, has been around since the early 1900’s as a specialty store. It was considered the first luxury retailer. Today, there are a huge variety of products offered at Neiman Marcus. However, these products have become a bit dated to the new generation. Their selection isn’t as appealing to the younger crowd as it is to the older crowd. This seems to be a weakness at Neiman Marcus. Also, according to several retail review sources, Neiman Marcus has poor customer service. Though they have these faults, they also have strengths with their strong loyalty programs.
bloomingdale’s & saks fifth avenue
Bloomingdale’s and Saks Fifth Avenue are very alike with the way they do business. Both have a respectful image. They are looked at to be very classy companies that offer good quality products. They also have a stronger website design than Nordstrom and offer more brands. Something that may deter consumers away is their high price points.
macy’s Macy’s has a large amount of stores, more so than Nordstrom. However, they do not carry a positive image. Consumers are not as impressed with Macy’s as they are with their competitors. Though this is one of their weaknesses, something that does attract consumers is their low price points.
Trend: fluid and flowy
THIS TREND IS ALL ABOUT MOVEMENT AND VOLUME USING SOFT AND FLOWY FABRICS. FOR EXAMPLE, CHIFFONS, SILK, TULLE, AND ORGANZA. WE SEE A MIX OF LAYERS (OVERLAYS) USING VIBRANT COLORS INSPIRED FROM A BOHEMIAN STYLE SEEN IN SS RW COLLECTIONS. IN THIS TREND THERE IS ALSO GOWNS WITH SHEER ELEMENTS ON SLEEVES AND BODICES AS WELL AS INCORPORATION OF METALLIC EMBELLISHMENTS. AS ACCESSORY ELEMENTS, SOME DRESSES ARE BELTED.
Trend: All covered up
IN THIS TREND, THERE ARE VERY LONG AND LEAN SILHOUETTES AND DESIGNS HIGHLIGHTING HIGH NECKLINES. INCREASED COVERAGE CREATES A CLASSIER LOOK. WE SEE A LOT OF SHEERNESS ON SLEEVES, A MIX OR FABRICS AND OVERLAYS AS WELL AS EMBROIDERY AND MIX OF PATTERNS.
Trend: COVERED IN SEQUINS
SEQUINS ARE SOMETHING THAT ALWAYS WORKS FOR EVENING WEAR. IT GIVES THE GARMENT A SENSE OF ELEGANCE, SOPHISTICATION AND EXPENSIVENESS. THIS TREND WAS EVIDENT DURING FASHION WEEK WHERE SEQUINS GAVE THE GARMENTS POPS OF INNOVATION AND MODERNISM. THE SHINY QUALITY OF SEQUINS GIVE A SHIELD-LIKE EFFECT/STYLE LOOKING FUTURISTIC AND POWERFUL.
Trend: FRINGE AND FEATHERS WE GROUPED THESE TWO TRENDS IN ONE BECAUSE WE BELIEVE BOTH BRING A MODERN 3 DIMENSIONAL VIBE. IT ADDS GREAT CONTRAST BETWEEN ETHEREAL, DELICACY, ROMANTICISM (FEATHERS) AND THE BOLDNESS AND BOHEMIAN STYLE (FRINGES). THESE TWO FEATURES ARE APPLIED TO FABRIC IN DIFFERENT SHAPES AND VOLUMES, SOME CREATING PATTERNS, OTHERS CREATING TEXTURE TO THE GARMENT, AND ULTIMATLEY BOTH CREATE DRAMA
6 MONTH BUYING PLAN
• Planned Net sales are $345,000,000 because Fall offers event opportunities • Our planned growth is 8.15% compared to last years. • The average stock on hand is $187,402,100, with an Inventory Turnover of 1.84.
• Planned Reductions are $55,200,000 for the season, and will be split over 6 months.
• December is the highest rate of markdowns for the season in the Corporate plan. • Planned Initial Markup for the season is 55% based on profit, expense, reductions, cash discounts, alteration costs, and net sales.
seatle store
• Net Sales are $7,000,000 for the Flagship store in Seattle.
• Because Nordstrom’s is based in Seattle, customers are very loyal to the store. • Due to the traditional seasonal events in November and December, the highest amount of sales is estimated for these months.
Dadeland mall miami
• Net Sales are $4,000,000 for the Dadeland Mall in Miami.
• International and seasonal visitors draw traffic into the store during the season. • December and January have the highest percentage of Net Sales because of the great demand for evening wear due to tourists and seasonal events.
ASSORTMENT PLAN
RISK & OPPORTUNITY IN OUR BUYING PLAN
WE SEE A GREAT DEAL OF OPPORTUNITY IN THIS BUYING PLAN BECAUSE NEW TRENDS ARE ALWAYS EMERGING IN EVENING WEAR. EVENING WEAR IS A STAPLE AND IS ALWAY A NECESSITY, SO WITH THE NEW EMERGING TRENDS WE FEEL CONFIDENT THAT WE CAN MEET A VARIETY OF CUSTOMER NEEDS. GIVEN THESE FACTS, WE FEEL THAT ADDITIONAL SALES MAY BE POSSIBLE TO ACHIEVE BEYOND THOSE IDENTIFIED IN THE 6-MONTH BUYING PLAN.
sources of information
http://www.wgsn.com/en/ http://wgsncolourarchive.tumblr.com
http://shop.nordstrom.com
http://www.strategicbusinessinsights. com/vals/ustypes.shtml
Meet the buyers
erin clancy wyrosdick
maggie dillon
kaleigh mattingly
mericia ramirez