corporate strategy assignment - nordstrom by amany hamza
TRANSCRIPT
Name Amany Hamza
Student number 21202244
Tutor Geoff Goddin
Course MBA Corporate Strategy
This is the final submitted hard copy for your consideration
2013
Figure 1 ndash Nordstrom (Source Google)
Nordstrom Corporate Strategy
Page | 1
Table of Contents 1 Executive Summary 4
2 Introduction 5
3 Dimensions of the industry development 6
4 The Paradoxical Choices 8
41 THE PARADOX of Compliance versus Choice to the industry development 8
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT 15
5 Conclusion 19
6 Acronyms 21
7 Reference 22
8 Appendices 25
Nordstrom Corporate Strategy
Page | 2
Table of Figures
Figure 1 ndash Nordstrom (Source Google) 0 Figure 2 ndash Nordstrom At A Glance (Source Adapted from Google) 3 Figure 3 ndash Nordstrom and its web of relational actors 7 Figure 4 ndash Retail Market Evolution Model 12 Figure 5 ndash Generation Share of Population 13 Figure 6 ndash Omni-channel Retailers 14 Figure 7 ndash Holistic Communication Strategy Across Omni-channelshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip17
Nordstrom Corporate Strategy
Page | 3
Figure 2 ndash Nordstrom At A Glance (Source Adapted from Google)
Nordstrom Corporate Strategy
Page | 4
1 Executive Summary
This report develops a critical assessment of Nordstrom Inc strategyrsquos implementations in
relation to its industry development and within its organisational context It analyses
Nordstrom Incrsquos distinctive business model that differs from its competitors whereas it is
driven by outpacing performance and its savvy competitive strategy This paper also outlines
the development of its integrative strategic thinking in a way to relieve the tension embodied by
the intense macro environmental forces or as a result of its passion to further grow on the
market and yet to sustain its business heritage as it has been operating in the marketplace for
more than 100 years
In addition the assessment cites the core competences of Nordstromrsquos leading position in the
American marketplace Yet this leading position is driven by strong inherent culture that counts
for the well execution of Nordstromrsquos strategies Nordstrom attributes its distinctive
performance in the marketplace to the implications of its integrated communications which is
tightly aligning between meeting customersrsquo needs and the company activities in order to
differentiate its products offerings and to seize the targeted segments Internally this integrated
communication structure which forms the control perspective allows a clear understanding of
Nordstromrsquos corporate objectives Empowerment which denotes the chaos perspective on the
other hand is highly regarded to create involvement and commitment in order to deliver these
strategies This internal formation is its gateway to lead the industry- whereas the US retail
market is moving towards a Post-Modern market evolution phase which signals an era defined
by wall-less Omni-channel stores (PWC 2012) Nordstrom was the first retailer to integrate its
stores into omni-channels back in 2008 (see Appendix PA-CVC-OC) It also adapts to the new
customers spending habits as noted further in the report And with Nordstromrsquos consistency in
paying attention to the new consumer trends and preferences Nordstrom will be the market
dominant
The conclusion encloses the imperatives for Nordstrom to sustain long term competitive
advantages in the industry and to run a profitable business through efficient anticipation to
what customers need or want and effective recognition to its employeersquos efforts with taking
into consideration the importance to give back to its communities The pillars of its forward
vision strategy will position the company to master the highly dynamic marketplace
Furthermore this format will generate an ethical business to benefit the industry and all
stakeholders
Nordstrom Corporate Strategy
Page | 5
2 Introduction
Nordstrom Inc the worlds number 16th most admired company for 2013 by Fortune is a
leading fashion specialty retailer offering compelling clothing shoes and accessories for men
women and children Since it was founded in 1901 it has been committed to providing its
customers with the best possible service selection quality and value (Nordstrom Company
History 2013) This philosophy has remained unchanged for over 100 years Today the
company mission is still the same
Nordstrom has developed its own niche in the retail industry as an affordable retailer
positioned between mid-tier retailers such as the Macys Inc stores and high-end luxury
retailers including Saks Fifth Avenue and privately-held Neiman Marcus (Wikinvest 2012) Thus
it offers a broad array of over 500 brands targeted toward the whole family through a strong
nationwide network of more than 248 stores situated across 33 states (Nordstrom Company
Facts 2013) Nordstrom differentiates itself by offering inclusive selection of quality
merchandise at affordable prices (see Appendix PA-CVC-AP) it reformed its pricing strategy to
adapt to the macro-environmental forces where its initial primary target market was the upper
echelons of society as noted in depth in the later descriptive analysis based on a proactive
pricing strategy which distinguishes it from other mall-based department store retailers and
benchmark against its rivals
Beyond differentiating its physical product and prices Nordstrom further differentiates itself
based on its services as of an exemplary one thereof its customer experience is characterised
by providing high value proposition that fills the void in the American market for luxury fashion
forward brands at attainable prices Hence Nordstrom has cultivated a distinctive brand in the
marketplace and while it is known for its selection of designer clothing its real claim to fame is
its quality customer service This is driven by a cohesive internal culture to best advocate the
underlying prerequisites of customer service that customers value over and above the product
theyre buying (Nordstrom 2012)
Nordstrom Corporate Strategy
Page | 6
3 Dimensions of the industry development
The branded fashion industry has benefited from demographic shifts and changes in consumer
preferences over time due to globalization and a rise in brand awareness (see Appendix PA-CVC-
ME) With fashion emerging as a means of self-expression consumers are increasingly choosing
branded fashion with images or logos over private label Despite the prolonged instability in the
world economy that has taken its toll on the branded products market - as a result of reduction
in household wealth falling consumer confidence frugal discretionary spending patterns and
shifting consumer demand to value for money bargains and has correlated to erode sales
growth over the last 5 years - the United States still represents the worldrsquos largest branded
apparel market having an estimated share of 29261 The retail fashion industry includes retail
stores and online (PEC Research 2012)
1 According to Global Industry Analysts Inc
Nordstrom Corporate Strategy
Page | 7
E
Threat on New
Entrants
Potential new
entrants face low
barriers ndash
generated by
direct-to-
consumer online
retailers
Buyer Power
Is high to
moderate due to
the empowered
customers with
internet
advances
01234
IncumbentRivals
BuyerPower
SupplierPower
Threat ofSubstitutes
Threat ofNew
Entrants
Competitive Landscape Lens
The impact of peak
cotton prices is associated with
long lag between the purchase of
raw materials and the appearance of
finished apparel goods on store
shelves (Euromonitor 2012)
Price-sensitive consumers trade down
or wait for promotions as a result of the
economic downturn (Euromonitor
2012)
Increasing fuel and transportation
costs as well as labour costs are
continue to rise as the standards of
living in the developing countries
that house many apparel
manufacturers drive inflation (Euromonito 2012)
Rivals-Fierce
competition
The high fragmentation
of the industry leads to
increased competitor
rivalry
Contemporary brands
such as teen fashion are
seeing explosive growth
(Nbcnewyork 2013)
The surge of post digital age
tends towards personalised and
customised products changing
the landscape on the
industry
S
The emerging
cutting-edge 21century
technology
migrates retailers
services online
The increasing pace of
technology is a double-
edged sword that both
enables and requires
agility and
adaptability
T
Each state across the
country has consumer
protection laws in place with
the goal of preventing
businesses from using
misleading marketing
campaigns as a means to
drive sales numbers (Chron
2013)
Labour Concerns Rise amid
Increased Competition amp
Costs
P L
Threat on
Substitutes
Is high because
of the increasing
number of
discount retailers
and supercentres
like Wal-market
Supplier
Power
Is low
because of
the large
number of
suppliers
available
Figure 3 ndash Nordstrom and its web of relational actors
Source Adapted from De Wit and Meyer 2010
Nordstrom Corporate Strategy
Page | 8
4 The Paradoxical Choices
41 THE PARADOX of Compliance versus Choice to the industry development
The low level of differentiation between the individual retailers and the fragmented nature
of the industry results in a very competitive environment which makes it difficult for the
industry to outperform the overall market (PEC Research 2012) Moreover despite the
improving trends witnessed in retail sales along with declining unemployment rate confirms
that the US economy continues to be on track for recovery there is still a general
uncertainty on the economic front with the GDP growth remaining sluggish Zacks Equity
Research (2013) suggested that this uncertainty in the retail industry development and the
instability noted early into the interplay economy forces underlie risky adaptation to this
industry orthodoxy which can even damage the industry itself on the long-term (De Wit and
Meyer 2010) The industry structure was characterised by many retailers being unprepared
for the sharp decline in consumer confidence that occurred in late 2007 opting for a bunker
mentality rather than a strategic one where the most common view was that many retailers
were cutting back in the wrong places of fewer products less service or even less inventory
(Gensler 2008) Another view was that other retailers chose to rest on their laurels without
connecting to the new customer behaviour which was the reason for them to be selected
out of the industry
De Wit and Meyer (2010) suggest that while compliance to the industry rules can be very
beneficial contradicting them can also be strategically valuable In the light of this
compliance to these poor underlying industry dynamics could jeopardise Nordstrom
corporate brand credibility Whereas the industry recipe was held towards trade-offs
between product quality cost and customer service Nordstrom successfully lived up to its
brand promise and has developed an integrative strategic thinking through its innovative
approach of the Omni-channel initiative in 2008 to create new ways of selling (see Appendix
PA-CVC-OC) as well as leverage a masstige2 pricing strategy to adapt to the accelerated pace
of consumers price sensitivity as they are trading down to lower price points or even
cheaper private label brands and also as a mean to reach out to a wide and diverse target
audience
2 Masstige products are defined as premium but attainable and there are two key tenets (1) They are considered luxury or premium products and (2) They have price points that fill the gap between mid-market and super premium (Wikipedia 2013)
Nordstrom Corporate Strategy
Page | 9
This paper illustrates the integrative ways of strategic thinking rather than a solution to
tackle infinity of hostile environmental forces where Nordstrom used the industry dynamics
as a powerful explanatory lens to understand the mainstay of the retail business the
consumers and even go beyond meeting their needs to a new concept of anticipating these
needs Hence it depicts on how to go beyond the crucial stage of transitioning from original
retail model into non-traditional to relate to the new future of retailing
Capitalising on blending both effectiveness and efficiency attributes to yielding a new
concept called ldquothe new efficiencyrdquo that is tied to the practice of attainable prices of high
end luxury products with emphasis on providing top of the line of customer services This
contrasted with the approach of the majority of retailers who are trimming their costs by
competing solely on price which resulted later in their failure to relate to consumersrsquo needs
and retain them This made Nordstrom stand out against its rivals Nordstrom developed an
innovative strategy which demonstrates characteristics of both dichotomous poles to reap
augmented value in the form of ROI (PWC 2012)
Despite applying the masstige pricing strategy service is not scarified even at the lower
priced Nordstrom Rack stores This entails from lowering its cost structure such as taking
the initiative of integrating its inventory by virtually pooling its online and in-store
inventories (see Appendix PA-CVC-IN) As a result of this Nordstrom keeps items in the
inventory for an average of 62 days hence its turning inventory is about twice as fast as its
competitors (Schermerhorn et al 2011) Also Nordstromrsquos dynamic strategy of being highly
responsive to address customersrsquo value-oriented buying behaviour results in the growing
number of its customers and the long term supplydemand balance which accelerate
revenues and lead to scale economies and lower costs with greater agility The perceived
value from adapting to the industry development embodies an opportunity rather than a
threat of not achieving profits because of lowering its prices
Most notably all Nordstrom transformations strategies have built up designated competitive
advantages based on both leadership and dynamics perspectives Right from the start when
Nordstrom was co-founded in 1901 as a shoe store it incorporated exceptional customer
services selection quality and value forming its brand equity Drawing from this mission it
expanded its stores in 1923 By the 1960rsquos the market reached maturity and in an attempt
to diversify itself it opened for the first time in history a department store which ventured
into the clothing market under the name of Nordstrom Best it offered a diverse products
no other competitors offered In order to retain its competitive advantage in 1973 it
Nordstrom Corporate Strategy
Page | 10
opened up its first Nordstrom Rack - the off priced stores - to reinvent new ways to induce
consumers to buy during the economic stagnation (Nordstrom Company History 2013) By
1975 it adapted to the industry dynamics at the time as getting out of the recession and
penetrated into the new American markets
As of Nordstrom recently despite the deterioration of economic conditions Nordstrom
weathered the recession better than most retailers with total sales surpassed $10 billion in
2012 where over $1 billion is coming from its direct sales a first in the companyrsquos history as
e-commerce achieved an impressive 37 per cent growth (Nordstrom Annual Report 2013)
Thereof Nordstrom enjoys a healthy financial position that entailed from diversifying its
portfolio marked with a high level of quality merchandise with strong brand presence in full-
line stores for the newest forward fashion with attainable prices which were at premium
prices before the recession -and in order to retain its customer base it employs tactical
marketing strategies of promotional pricing to offer the implied affordability without
damaging its brand on the long term In addition they also found a good presence in lower
priced value market for new brands with its Rack stores
While its supply chain expedites merchandise in the areas of handling highly innovative
fashion products partnerships are also enhancing the in-store and online experiences In
2012 Nordstrom achieved another pioneering advantage by becoming the only major US
retailer to sell a broad assortment from the renowned British fashion brands Topshop and
Topman to entice younger shoppers and to translate its engagement with young customers
through the digital media into compelling merchandise offering that they favour to push on
the sales (Nordstrom Company History 2013)
As a matter of fact Nordstrom is making all of the right moves to accelerate sales growth in
line with commitment to stay true to its reputation of having excellent customer service
(Inside FFM 2012) Hence its continuum customer centricity ranged from its liberal returns
policy to return items without a receipt to efforts by employees to make a connection with
existing customers and acquire potential ones (Nordstrom Annual Report 2012) Besides its
Fashion Rewards Program features as a shopping-based loyalty as Nordstrom operates in
credit segment through its owned federal savings bank to provide private label cards
(Reuters 2013) On one hand this has been highly regarded among customers and on the
other hand it resulted in robust sales as Nordstrom builds strong value-laden customer
relationships with its customers (Kotler et al 2012)
Nordstrom Corporate Strategy
Page | 11
Nordstromrsquos core competences are derived from its customer centric approach which has
created multiple growth opportunities that is coupled with savvy competitive strategy With
regard to this approach in 2009 Nordstrom aggregated its inventory across its network and
made it visible by displaying stock from both the Web warehouse and its stores all at once
(see Appendix PA-CVC-IN) This might not seem revolutionary in other industries but a
melding of Web site and store was surprisingly rare in the retailing world (The New York
Times 2010) Thus such fluidity was hard to find among Nordstromrsquos competitors therefore
many retailers at the time were experiencing YOY sales decreases at other stores Although
Nordstrom did have to hire more shipping employees to wrap and ship items from each
store the increased sales more than offset the operational costs (Banker 2011)
Selected by US News as one of Americas Most Connected Companies for its use of
technology to expand shopping options Nordstrom has been aggressive about snapping up
promising Internet ventures to diversify its business and experiment with new retail
platforms Its social media strategy extends well beyond the likes of Facebook Twitter and
YouTube to an array of buzz-generating fashion and photo-sharing sites Recognizing that its
customers always want to stay connected the company introduced complimentary Wi-Fi in
its high-end department stores in 2010 (see Appendix PA-CVC-TE)
Late 2011 it distributed in its flagship stores 6000 modified iTouch devices to sales staff that
can ring up purchases on the spot a process called mobile checkout and track inventory
(see Appendix PA-CVC-POS) Sales personnel also use iPads to assist customers with the
selection of everything from wedding wardrobes to cosmetics to business suits (Hatch 2012)
Despite the high cost of operating these mobile POS devices the integrative thinking of
reducing the potential amount of time customers have to think about their purchases before
they reach the register has translated into higher profits in both Nordstromrsquos 2012 March
Sales Report (see Appendix PA-CVC-SR) According to the company 2012 sales was $173
billion increased 153 per cent compared with total retail sales of $150 billion for the same
period in fiscal 2011 (Forbes 2012)
While customers are trading down Nordstrom has responded by expanding its off-price Rack
stores Moreover as Nordstrom has not been a typical retailer it evolved a new trend to
exploit the strength of the Rack division and benefit from its strong fundamentals in the off-
price space by opening one of its Rack stores a crosswalk away from its flagship in downtown
Seattle (Martinez 2012) It argued that around 60 per cent of the Rack divisions customers
also shop at Nordstroms flagship stores as they want the newest latest greatest thing so for
Nordstrom Corporate Strategy
Page | 12
their convenience they go across to the full-line store and get it the day it comes out
Nordstrom is challenging the conventional wisdom that a retailers full-price and off-price
stores cannibalize each other Much more complete this approach seems to contribute to
the industry risk averseness (De Wit amp Meyer 2010) However it addresses the two poles in
an efficient and effective way On one hand it allows customers from the Rack to shop at the
full line stores where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack they would benefit from just crossing the road and they could shop
there Most importantly is to divert customers from other stores with productsrsquo values are
competed away to the Rack for their less competitive products either less quality or high
prices in this way to increase customer base Nevertheless Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwCKantar Retail 2012)
Figure 4 ndash
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
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20
A1
pd
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
News
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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OPINION raquo
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BUSINESS raquo
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ARTS raquo
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Home World US NY Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top
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REPRINTS
INSIDE NYTIMESCOM
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
Game Of Thrones Season 3 Episode 9Game Of Thrones Season 3 Episode 9Review The Rains Of CastamereReview The Rains Of Castamere
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Democrats New Argument Its A GoodDemocrats New Argument Its A GoodThing That Obamacare DoublesThing That Obamacare DoublesIndividual Health InsuranceIndividual Health InsurancePremiumsPremiums +139678 views
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
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Amazon AWS Takes Down Netflix On ChristmasEve 102721 views
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Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
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IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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4 comments 2 called-out Comment Now Follow Comments
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
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Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 1
Table of Contents 1 Executive Summary 4
2 Introduction 5
3 Dimensions of the industry development 6
4 The Paradoxical Choices 8
41 THE PARADOX of Compliance versus Choice to the industry development 8
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT 15
5 Conclusion 19
6 Acronyms 21
7 Reference 22
8 Appendices 25
Nordstrom Corporate Strategy
Page | 2
Table of Figures
Figure 1 ndash Nordstrom (Source Google) 0 Figure 2 ndash Nordstrom At A Glance (Source Adapted from Google) 3 Figure 3 ndash Nordstrom and its web of relational actors 7 Figure 4 ndash Retail Market Evolution Model 12 Figure 5 ndash Generation Share of Population 13 Figure 6 ndash Omni-channel Retailers 14 Figure 7 ndash Holistic Communication Strategy Across Omni-channelshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip17
Nordstrom Corporate Strategy
Page | 3
Figure 2 ndash Nordstrom At A Glance (Source Adapted from Google)
Nordstrom Corporate Strategy
Page | 4
1 Executive Summary
This report develops a critical assessment of Nordstrom Inc strategyrsquos implementations in
relation to its industry development and within its organisational context It analyses
Nordstrom Incrsquos distinctive business model that differs from its competitors whereas it is
driven by outpacing performance and its savvy competitive strategy This paper also outlines
the development of its integrative strategic thinking in a way to relieve the tension embodied by
the intense macro environmental forces or as a result of its passion to further grow on the
market and yet to sustain its business heritage as it has been operating in the marketplace for
more than 100 years
In addition the assessment cites the core competences of Nordstromrsquos leading position in the
American marketplace Yet this leading position is driven by strong inherent culture that counts
for the well execution of Nordstromrsquos strategies Nordstrom attributes its distinctive
performance in the marketplace to the implications of its integrated communications which is
tightly aligning between meeting customersrsquo needs and the company activities in order to
differentiate its products offerings and to seize the targeted segments Internally this integrated
communication structure which forms the control perspective allows a clear understanding of
Nordstromrsquos corporate objectives Empowerment which denotes the chaos perspective on the
other hand is highly regarded to create involvement and commitment in order to deliver these
strategies This internal formation is its gateway to lead the industry- whereas the US retail
market is moving towards a Post-Modern market evolution phase which signals an era defined
by wall-less Omni-channel stores (PWC 2012) Nordstrom was the first retailer to integrate its
stores into omni-channels back in 2008 (see Appendix PA-CVC-OC) It also adapts to the new
customers spending habits as noted further in the report And with Nordstromrsquos consistency in
paying attention to the new consumer trends and preferences Nordstrom will be the market
dominant
The conclusion encloses the imperatives for Nordstrom to sustain long term competitive
advantages in the industry and to run a profitable business through efficient anticipation to
what customers need or want and effective recognition to its employeersquos efforts with taking
into consideration the importance to give back to its communities The pillars of its forward
vision strategy will position the company to master the highly dynamic marketplace
Furthermore this format will generate an ethical business to benefit the industry and all
stakeholders
Nordstrom Corporate Strategy
Page | 5
2 Introduction
Nordstrom Inc the worlds number 16th most admired company for 2013 by Fortune is a
leading fashion specialty retailer offering compelling clothing shoes and accessories for men
women and children Since it was founded in 1901 it has been committed to providing its
customers with the best possible service selection quality and value (Nordstrom Company
History 2013) This philosophy has remained unchanged for over 100 years Today the
company mission is still the same
Nordstrom has developed its own niche in the retail industry as an affordable retailer
positioned between mid-tier retailers such as the Macys Inc stores and high-end luxury
retailers including Saks Fifth Avenue and privately-held Neiman Marcus (Wikinvest 2012) Thus
it offers a broad array of over 500 brands targeted toward the whole family through a strong
nationwide network of more than 248 stores situated across 33 states (Nordstrom Company
Facts 2013) Nordstrom differentiates itself by offering inclusive selection of quality
merchandise at affordable prices (see Appendix PA-CVC-AP) it reformed its pricing strategy to
adapt to the macro-environmental forces where its initial primary target market was the upper
echelons of society as noted in depth in the later descriptive analysis based on a proactive
pricing strategy which distinguishes it from other mall-based department store retailers and
benchmark against its rivals
Beyond differentiating its physical product and prices Nordstrom further differentiates itself
based on its services as of an exemplary one thereof its customer experience is characterised
by providing high value proposition that fills the void in the American market for luxury fashion
forward brands at attainable prices Hence Nordstrom has cultivated a distinctive brand in the
marketplace and while it is known for its selection of designer clothing its real claim to fame is
its quality customer service This is driven by a cohesive internal culture to best advocate the
underlying prerequisites of customer service that customers value over and above the product
theyre buying (Nordstrom 2012)
Nordstrom Corporate Strategy
Page | 6
3 Dimensions of the industry development
The branded fashion industry has benefited from demographic shifts and changes in consumer
preferences over time due to globalization and a rise in brand awareness (see Appendix PA-CVC-
ME) With fashion emerging as a means of self-expression consumers are increasingly choosing
branded fashion with images or logos over private label Despite the prolonged instability in the
world economy that has taken its toll on the branded products market - as a result of reduction
in household wealth falling consumer confidence frugal discretionary spending patterns and
shifting consumer demand to value for money bargains and has correlated to erode sales
growth over the last 5 years - the United States still represents the worldrsquos largest branded
apparel market having an estimated share of 29261 The retail fashion industry includes retail
stores and online (PEC Research 2012)
1 According to Global Industry Analysts Inc
Nordstrom Corporate Strategy
Page | 7
E
Threat on New
Entrants
Potential new
entrants face low
barriers ndash
generated by
direct-to-
consumer online
retailers
Buyer Power
Is high to
moderate due to
the empowered
customers with
internet
advances
01234
IncumbentRivals
BuyerPower
SupplierPower
Threat ofSubstitutes
Threat ofNew
Entrants
Competitive Landscape Lens
The impact of peak
cotton prices is associated with
long lag between the purchase of
raw materials and the appearance of
finished apparel goods on store
shelves (Euromonitor 2012)
Price-sensitive consumers trade down
or wait for promotions as a result of the
economic downturn (Euromonitor
2012)
Increasing fuel and transportation
costs as well as labour costs are
continue to rise as the standards of
living in the developing countries
that house many apparel
manufacturers drive inflation (Euromonito 2012)
Rivals-Fierce
competition
The high fragmentation
of the industry leads to
increased competitor
rivalry
Contemporary brands
such as teen fashion are
seeing explosive growth
(Nbcnewyork 2013)
The surge of post digital age
tends towards personalised and
customised products changing
the landscape on the
industry
S
The emerging
cutting-edge 21century
technology
migrates retailers
services online
The increasing pace of
technology is a double-
edged sword that both
enables and requires
agility and
adaptability
T
Each state across the
country has consumer
protection laws in place with
the goal of preventing
businesses from using
misleading marketing
campaigns as a means to
drive sales numbers (Chron
2013)
Labour Concerns Rise amid
Increased Competition amp
Costs
P L
Threat on
Substitutes
Is high because
of the increasing
number of
discount retailers
and supercentres
like Wal-market
Supplier
Power
Is low
because of
the large
number of
suppliers
available
Figure 3 ndash Nordstrom and its web of relational actors
Source Adapted from De Wit and Meyer 2010
Nordstrom Corporate Strategy
Page | 8
4 The Paradoxical Choices
41 THE PARADOX of Compliance versus Choice to the industry development
The low level of differentiation between the individual retailers and the fragmented nature
of the industry results in a very competitive environment which makes it difficult for the
industry to outperform the overall market (PEC Research 2012) Moreover despite the
improving trends witnessed in retail sales along with declining unemployment rate confirms
that the US economy continues to be on track for recovery there is still a general
uncertainty on the economic front with the GDP growth remaining sluggish Zacks Equity
Research (2013) suggested that this uncertainty in the retail industry development and the
instability noted early into the interplay economy forces underlie risky adaptation to this
industry orthodoxy which can even damage the industry itself on the long-term (De Wit and
Meyer 2010) The industry structure was characterised by many retailers being unprepared
for the sharp decline in consumer confidence that occurred in late 2007 opting for a bunker
mentality rather than a strategic one where the most common view was that many retailers
were cutting back in the wrong places of fewer products less service or even less inventory
(Gensler 2008) Another view was that other retailers chose to rest on their laurels without
connecting to the new customer behaviour which was the reason for them to be selected
out of the industry
De Wit and Meyer (2010) suggest that while compliance to the industry rules can be very
beneficial contradicting them can also be strategically valuable In the light of this
compliance to these poor underlying industry dynamics could jeopardise Nordstrom
corporate brand credibility Whereas the industry recipe was held towards trade-offs
between product quality cost and customer service Nordstrom successfully lived up to its
brand promise and has developed an integrative strategic thinking through its innovative
approach of the Omni-channel initiative in 2008 to create new ways of selling (see Appendix
PA-CVC-OC) as well as leverage a masstige2 pricing strategy to adapt to the accelerated pace
of consumers price sensitivity as they are trading down to lower price points or even
cheaper private label brands and also as a mean to reach out to a wide and diverse target
audience
2 Masstige products are defined as premium but attainable and there are two key tenets (1) They are considered luxury or premium products and (2) They have price points that fill the gap between mid-market and super premium (Wikipedia 2013)
Nordstrom Corporate Strategy
Page | 9
This paper illustrates the integrative ways of strategic thinking rather than a solution to
tackle infinity of hostile environmental forces where Nordstrom used the industry dynamics
as a powerful explanatory lens to understand the mainstay of the retail business the
consumers and even go beyond meeting their needs to a new concept of anticipating these
needs Hence it depicts on how to go beyond the crucial stage of transitioning from original
retail model into non-traditional to relate to the new future of retailing
Capitalising on blending both effectiveness and efficiency attributes to yielding a new
concept called ldquothe new efficiencyrdquo that is tied to the practice of attainable prices of high
end luxury products with emphasis on providing top of the line of customer services This
contrasted with the approach of the majority of retailers who are trimming their costs by
competing solely on price which resulted later in their failure to relate to consumersrsquo needs
and retain them This made Nordstrom stand out against its rivals Nordstrom developed an
innovative strategy which demonstrates characteristics of both dichotomous poles to reap
augmented value in the form of ROI (PWC 2012)
Despite applying the masstige pricing strategy service is not scarified even at the lower
priced Nordstrom Rack stores This entails from lowering its cost structure such as taking
the initiative of integrating its inventory by virtually pooling its online and in-store
inventories (see Appendix PA-CVC-IN) As a result of this Nordstrom keeps items in the
inventory for an average of 62 days hence its turning inventory is about twice as fast as its
competitors (Schermerhorn et al 2011) Also Nordstromrsquos dynamic strategy of being highly
responsive to address customersrsquo value-oriented buying behaviour results in the growing
number of its customers and the long term supplydemand balance which accelerate
revenues and lead to scale economies and lower costs with greater agility The perceived
value from adapting to the industry development embodies an opportunity rather than a
threat of not achieving profits because of lowering its prices
Most notably all Nordstrom transformations strategies have built up designated competitive
advantages based on both leadership and dynamics perspectives Right from the start when
Nordstrom was co-founded in 1901 as a shoe store it incorporated exceptional customer
services selection quality and value forming its brand equity Drawing from this mission it
expanded its stores in 1923 By the 1960rsquos the market reached maturity and in an attempt
to diversify itself it opened for the first time in history a department store which ventured
into the clothing market under the name of Nordstrom Best it offered a diverse products
no other competitors offered In order to retain its competitive advantage in 1973 it
Nordstrom Corporate Strategy
Page | 10
opened up its first Nordstrom Rack - the off priced stores - to reinvent new ways to induce
consumers to buy during the economic stagnation (Nordstrom Company History 2013) By
1975 it adapted to the industry dynamics at the time as getting out of the recession and
penetrated into the new American markets
As of Nordstrom recently despite the deterioration of economic conditions Nordstrom
weathered the recession better than most retailers with total sales surpassed $10 billion in
2012 where over $1 billion is coming from its direct sales a first in the companyrsquos history as
e-commerce achieved an impressive 37 per cent growth (Nordstrom Annual Report 2013)
Thereof Nordstrom enjoys a healthy financial position that entailed from diversifying its
portfolio marked with a high level of quality merchandise with strong brand presence in full-
line stores for the newest forward fashion with attainable prices which were at premium
prices before the recession -and in order to retain its customer base it employs tactical
marketing strategies of promotional pricing to offer the implied affordability without
damaging its brand on the long term In addition they also found a good presence in lower
priced value market for new brands with its Rack stores
While its supply chain expedites merchandise in the areas of handling highly innovative
fashion products partnerships are also enhancing the in-store and online experiences In
2012 Nordstrom achieved another pioneering advantage by becoming the only major US
retailer to sell a broad assortment from the renowned British fashion brands Topshop and
Topman to entice younger shoppers and to translate its engagement with young customers
through the digital media into compelling merchandise offering that they favour to push on
the sales (Nordstrom Company History 2013)
As a matter of fact Nordstrom is making all of the right moves to accelerate sales growth in
line with commitment to stay true to its reputation of having excellent customer service
(Inside FFM 2012) Hence its continuum customer centricity ranged from its liberal returns
policy to return items without a receipt to efforts by employees to make a connection with
existing customers and acquire potential ones (Nordstrom Annual Report 2012) Besides its
Fashion Rewards Program features as a shopping-based loyalty as Nordstrom operates in
credit segment through its owned federal savings bank to provide private label cards
(Reuters 2013) On one hand this has been highly regarded among customers and on the
other hand it resulted in robust sales as Nordstrom builds strong value-laden customer
relationships with its customers (Kotler et al 2012)
Nordstrom Corporate Strategy
Page | 11
Nordstromrsquos core competences are derived from its customer centric approach which has
created multiple growth opportunities that is coupled with savvy competitive strategy With
regard to this approach in 2009 Nordstrom aggregated its inventory across its network and
made it visible by displaying stock from both the Web warehouse and its stores all at once
(see Appendix PA-CVC-IN) This might not seem revolutionary in other industries but a
melding of Web site and store was surprisingly rare in the retailing world (The New York
Times 2010) Thus such fluidity was hard to find among Nordstromrsquos competitors therefore
many retailers at the time were experiencing YOY sales decreases at other stores Although
Nordstrom did have to hire more shipping employees to wrap and ship items from each
store the increased sales more than offset the operational costs (Banker 2011)
Selected by US News as one of Americas Most Connected Companies for its use of
technology to expand shopping options Nordstrom has been aggressive about snapping up
promising Internet ventures to diversify its business and experiment with new retail
platforms Its social media strategy extends well beyond the likes of Facebook Twitter and
YouTube to an array of buzz-generating fashion and photo-sharing sites Recognizing that its
customers always want to stay connected the company introduced complimentary Wi-Fi in
its high-end department stores in 2010 (see Appendix PA-CVC-TE)
Late 2011 it distributed in its flagship stores 6000 modified iTouch devices to sales staff that
can ring up purchases on the spot a process called mobile checkout and track inventory
(see Appendix PA-CVC-POS) Sales personnel also use iPads to assist customers with the
selection of everything from wedding wardrobes to cosmetics to business suits (Hatch 2012)
Despite the high cost of operating these mobile POS devices the integrative thinking of
reducing the potential amount of time customers have to think about their purchases before
they reach the register has translated into higher profits in both Nordstromrsquos 2012 March
Sales Report (see Appendix PA-CVC-SR) According to the company 2012 sales was $173
billion increased 153 per cent compared with total retail sales of $150 billion for the same
period in fiscal 2011 (Forbes 2012)
While customers are trading down Nordstrom has responded by expanding its off-price Rack
stores Moreover as Nordstrom has not been a typical retailer it evolved a new trend to
exploit the strength of the Rack division and benefit from its strong fundamentals in the off-
price space by opening one of its Rack stores a crosswalk away from its flagship in downtown
Seattle (Martinez 2012) It argued that around 60 per cent of the Rack divisions customers
also shop at Nordstroms flagship stores as they want the newest latest greatest thing so for
Nordstrom Corporate Strategy
Page | 12
their convenience they go across to the full-line store and get it the day it comes out
Nordstrom is challenging the conventional wisdom that a retailers full-price and off-price
stores cannibalize each other Much more complete this approach seems to contribute to
the industry risk averseness (De Wit amp Meyer 2010) However it addresses the two poles in
an efficient and effective way On one hand it allows customers from the Rack to shop at the
full line stores where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack they would benefit from just crossing the road and they could shop
there Most importantly is to divert customers from other stores with productsrsquo values are
competed away to the Rack for their less competitive products either less quality or high
prices in this way to increase customer base Nevertheless Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwCKantar Retail 2012)
Figure 4 ndash
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
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httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
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companieaspx
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Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
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Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
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media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
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Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
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Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
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20
A1
pd
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
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fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
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Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
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Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
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billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
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246
281
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174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
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Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
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Safe Harbor
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Stock Information
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Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 2
Table of Figures
Figure 1 ndash Nordstrom (Source Google) 0 Figure 2 ndash Nordstrom At A Glance (Source Adapted from Google) 3 Figure 3 ndash Nordstrom and its web of relational actors 7 Figure 4 ndash Retail Market Evolution Model 12 Figure 5 ndash Generation Share of Population 13 Figure 6 ndash Omni-channel Retailers 14 Figure 7 ndash Holistic Communication Strategy Across Omni-channelshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip17
Nordstrom Corporate Strategy
Page | 3
Figure 2 ndash Nordstrom At A Glance (Source Adapted from Google)
Nordstrom Corporate Strategy
Page | 4
1 Executive Summary
This report develops a critical assessment of Nordstrom Inc strategyrsquos implementations in
relation to its industry development and within its organisational context It analyses
Nordstrom Incrsquos distinctive business model that differs from its competitors whereas it is
driven by outpacing performance and its savvy competitive strategy This paper also outlines
the development of its integrative strategic thinking in a way to relieve the tension embodied by
the intense macro environmental forces or as a result of its passion to further grow on the
market and yet to sustain its business heritage as it has been operating in the marketplace for
more than 100 years
In addition the assessment cites the core competences of Nordstromrsquos leading position in the
American marketplace Yet this leading position is driven by strong inherent culture that counts
for the well execution of Nordstromrsquos strategies Nordstrom attributes its distinctive
performance in the marketplace to the implications of its integrated communications which is
tightly aligning between meeting customersrsquo needs and the company activities in order to
differentiate its products offerings and to seize the targeted segments Internally this integrated
communication structure which forms the control perspective allows a clear understanding of
Nordstromrsquos corporate objectives Empowerment which denotes the chaos perspective on the
other hand is highly regarded to create involvement and commitment in order to deliver these
strategies This internal formation is its gateway to lead the industry- whereas the US retail
market is moving towards a Post-Modern market evolution phase which signals an era defined
by wall-less Omni-channel stores (PWC 2012) Nordstrom was the first retailer to integrate its
stores into omni-channels back in 2008 (see Appendix PA-CVC-OC) It also adapts to the new
customers spending habits as noted further in the report And with Nordstromrsquos consistency in
paying attention to the new consumer trends and preferences Nordstrom will be the market
dominant
The conclusion encloses the imperatives for Nordstrom to sustain long term competitive
advantages in the industry and to run a profitable business through efficient anticipation to
what customers need or want and effective recognition to its employeersquos efforts with taking
into consideration the importance to give back to its communities The pillars of its forward
vision strategy will position the company to master the highly dynamic marketplace
Furthermore this format will generate an ethical business to benefit the industry and all
stakeholders
Nordstrom Corporate Strategy
Page | 5
2 Introduction
Nordstrom Inc the worlds number 16th most admired company for 2013 by Fortune is a
leading fashion specialty retailer offering compelling clothing shoes and accessories for men
women and children Since it was founded in 1901 it has been committed to providing its
customers with the best possible service selection quality and value (Nordstrom Company
History 2013) This philosophy has remained unchanged for over 100 years Today the
company mission is still the same
Nordstrom has developed its own niche in the retail industry as an affordable retailer
positioned between mid-tier retailers such as the Macys Inc stores and high-end luxury
retailers including Saks Fifth Avenue and privately-held Neiman Marcus (Wikinvest 2012) Thus
it offers a broad array of over 500 brands targeted toward the whole family through a strong
nationwide network of more than 248 stores situated across 33 states (Nordstrom Company
Facts 2013) Nordstrom differentiates itself by offering inclusive selection of quality
merchandise at affordable prices (see Appendix PA-CVC-AP) it reformed its pricing strategy to
adapt to the macro-environmental forces where its initial primary target market was the upper
echelons of society as noted in depth in the later descriptive analysis based on a proactive
pricing strategy which distinguishes it from other mall-based department store retailers and
benchmark against its rivals
Beyond differentiating its physical product and prices Nordstrom further differentiates itself
based on its services as of an exemplary one thereof its customer experience is characterised
by providing high value proposition that fills the void in the American market for luxury fashion
forward brands at attainable prices Hence Nordstrom has cultivated a distinctive brand in the
marketplace and while it is known for its selection of designer clothing its real claim to fame is
its quality customer service This is driven by a cohesive internal culture to best advocate the
underlying prerequisites of customer service that customers value over and above the product
theyre buying (Nordstrom 2012)
Nordstrom Corporate Strategy
Page | 6
3 Dimensions of the industry development
The branded fashion industry has benefited from demographic shifts and changes in consumer
preferences over time due to globalization and a rise in brand awareness (see Appendix PA-CVC-
ME) With fashion emerging as a means of self-expression consumers are increasingly choosing
branded fashion with images or logos over private label Despite the prolonged instability in the
world economy that has taken its toll on the branded products market - as a result of reduction
in household wealth falling consumer confidence frugal discretionary spending patterns and
shifting consumer demand to value for money bargains and has correlated to erode sales
growth over the last 5 years - the United States still represents the worldrsquos largest branded
apparel market having an estimated share of 29261 The retail fashion industry includes retail
stores and online (PEC Research 2012)
1 According to Global Industry Analysts Inc
Nordstrom Corporate Strategy
Page | 7
E
Threat on New
Entrants
Potential new
entrants face low
barriers ndash
generated by
direct-to-
consumer online
retailers
Buyer Power
Is high to
moderate due to
the empowered
customers with
internet
advances
01234
IncumbentRivals
BuyerPower
SupplierPower
Threat ofSubstitutes
Threat ofNew
Entrants
Competitive Landscape Lens
The impact of peak
cotton prices is associated with
long lag between the purchase of
raw materials and the appearance of
finished apparel goods on store
shelves (Euromonitor 2012)
Price-sensitive consumers trade down
or wait for promotions as a result of the
economic downturn (Euromonitor
2012)
Increasing fuel and transportation
costs as well as labour costs are
continue to rise as the standards of
living in the developing countries
that house many apparel
manufacturers drive inflation (Euromonito 2012)
Rivals-Fierce
competition
The high fragmentation
of the industry leads to
increased competitor
rivalry
Contemporary brands
such as teen fashion are
seeing explosive growth
(Nbcnewyork 2013)
The surge of post digital age
tends towards personalised and
customised products changing
the landscape on the
industry
S
The emerging
cutting-edge 21century
technology
migrates retailers
services online
The increasing pace of
technology is a double-
edged sword that both
enables and requires
agility and
adaptability
T
Each state across the
country has consumer
protection laws in place with
the goal of preventing
businesses from using
misleading marketing
campaigns as a means to
drive sales numbers (Chron
2013)
Labour Concerns Rise amid
Increased Competition amp
Costs
P L
Threat on
Substitutes
Is high because
of the increasing
number of
discount retailers
and supercentres
like Wal-market
Supplier
Power
Is low
because of
the large
number of
suppliers
available
Figure 3 ndash Nordstrom and its web of relational actors
Source Adapted from De Wit and Meyer 2010
Nordstrom Corporate Strategy
Page | 8
4 The Paradoxical Choices
41 THE PARADOX of Compliance versus Choice to the industry development
The low level of differentiation between the individual retailers and the fragmented nature
of the industry results in a very competitive environment which makes it difficult for the
industry to outperform the overall market (PEC Research 2012) Moreover despite the
improving trends witnessed in retail sales along with declining unemployment rate confirms
that the US economy continues to be on track for recovery there is still a general
uncertainty on the economic front with the GDP growth remaining sluggish Zacks Equity
Research (2013) suggested that this uncertainty in the retail industry development and the
instability noted early into the interplay economy forces underlie risky adaptation to this
industry orthodoxy which can even damage the industry itself on the long-term (De Wit and
Meyer 2010) The industry structure was characterised by many retailers being unprepared
for the sharp decline in consumer confidence that occurred in late 2007 opting for a bunker
mentality rather than a strategic one where the most common view was that many retailers
were cutting back in the wrong places of fewer products less service or even less inventory
(Gensler 2008) Another view was that other retailers chose to rest on their laurels without
connecting to the new customer behaviour which was the reason for them to be selected
out of the industry
De Wit and Meyer (2010) suggest that while compliance to the industry rules can be very
beneficial contradicting them can also be strategically valuable In the light of this
compliance to these poor underlying industry dynamics could jeopardise Nordstrom
corporate brand credibility Whereas the industry recipe was held towards trade-offs
between product quality cost and customer service Nordstrom successfully lived up to its
brand promise and has developed an integrative strategic thinking through its innovative
approach of the Omni-channel initiative in 2008 to create new ways of selling (see Appendix
PA-CVC-OC) as well as leverage a masstige2 pricing strategy to adapt to the accelerated pace
of consumers price sensitivity as they are trading down to lower price points or even
cheaper private label brands and also as a mean to reach out to a wide and diverse target
audience
2 Masstige products are defined as premium but attainable and there are two key tenets (1) They are considered luxury or premium products and (2) They have price points that fill the gap between mid-market and super premium (Wikipedia 2013)
Nordstrom Corporate Strategy
Page | 9
This paper illustrates the integrative ways of strategic thinking rather than a solution to
tackle infinity of hostile environmental forces where Nordstrom used the industry dynamics
as a powerful explanatory lens to understand the mainstay of the retail business the
consumers and even go beyond meeting their needs to a new concept of anticipating these
needs Hence it depicts on how to go beyond the crucial stage of transitioning from original
retail model into non-traditional to relate to the new future of retailing
Capitalising on blending both effectiveness and efficiency attributes to yielding a new
concept called ldquothe new efficiencyrdquo that is tied to the practice of attainable prices of high
end luxury products with emphasis on providing top of the line of customer services This
contrasted with the approach of the majority of retailers who are trimming their costs by
competing solely on price which resulted later in their failure to relate to consumersrsquo needs
and retain them This made Nordstrom stand out against its rivals Nordstrom developed an
innovative strategy which demonstrates characteristics of both dichotomous poles to reap
augmented value in the form of ROI (PWC 2012)
Despite applying the masstige pricing strategy service is not scarified even at the lower
priced Nordstrom Rack stores This entails from lowering its cost structure such as taking
the initiative of integrating its inventory by virtually pooling its online and in-store
inventories (see Appendix PA-CVC-IN) As a result of this Nordstrom keeps items in the
inventory for an average of 62 days hence its turning inventory is about twice as fast as its
competitors (Schermerhorn et al 2011) Also Nordstromrsquos dynamic strategy of being highly
responsive to address customersrsquo value-oriented buying behaviour results in the growing
number of its customers and the long term supplydemand balance which accelerate
revenues and lead to scale economies and lower costs with greater agility The perceived
value from adapting to the industry development embodies an opportunity rather than a
threat of not achieving profits because of lowering its prices
Most notably all Nordstrom transformations strategies have built up designated competitive
advantages based on both leadership and dynamics perspectives Right from the start when
Nordstrom was co-founded in 1901 as a shoe store it incorporated exceptional customer
services selection quality and value forming its brand equity Drawing from this mission it
expanded its stores in 1923 By the 1960rsquos the market reached maturity and in an attempt
to diversify itself it opened for the first time in history a department store which ventured
into the clothing market under the name of Nordstrom Best it offered a diverse products
no other competitors offered In order to retain its competitive advantage in 1973 it
Nordstrom Corporate Strategy
Page | 10
opened up its first Nordstrom Rack - the off priced stores - to reinvent new ways to induce
consumers to buy during the economic stagnation (Nordstrom Company History 2013) By
1975 it adapted to the industry dynamics at the time as getting out of the recession and
penetrated into the new American markets
As of Nordstrom recently despite the deterioration of economic conditions Nordstrom
weathered the recession better than most retailers with total sales surpassed $10 billion in
2012 where over $1 billion is coming from its direct sales a first in the companyrsquos history as
e-commerce achieved an impressive 37 per cent growth (Nordstrom Annual Report 2013)
Thereof Nordstrom enjoys a healthy financial position that entailed from diversifying its
portfolio marked with a high level of quality merchandise with strong brand presence in full-
line stores for the newest forward fashion with attainable prices which were at premium
prices before the recession -and in order to retain its customer base it employs tactical
marketing strategies of promotional pricing to offer the implied affordability without
damaging its brand on the long term In addition they also found a good presence in lower
priced value market for new brands with its Rack stores
While its supply chain expedites merchandise in the areas of handling highly innovative
fashion products partnerships are also enhancing the in-store and online experiences In
2012 Nordstrom achieved another pioneering advantage by becoming the only major US
retailer to sell a broad assortment from the renowned British fashion brands Topshop and
Topman to entice younger shoppers and to translate its engagement with young customers
through the digital media into compelling merchandise offering that they favour to push on
the sales (Nordstrom Company History 2013)
As a matter of fact Nordstrom is making all of the right moves to accelerate sales growth in
line with commitment to stay true to its reputation of having excellent customer service
(Inside FFM 2012) Hence its continuum customer centricity ranged from its liberal returns
policy to return items without a receipt to efforts by employees to make a connection with
existing customers and acquire potential ones (Nordstrom Annual Report 2012) Besides its
Fashion Rewards Program features as a shopping-based loyalty as Nordstrom operates in
credit segment through its owned federal savings bank to provide private label cards
(Reuters 2013) On one hand this has been highly regarded among customers and on the
other hand it resulted in robust sales as Nordstrom builds strong value-laden customer
relationships with its customers (Kotler et al 2012)
Nordstrom Corporate Strategy
Page | 11
Nordstromrsquos core competences are derived from its customer centric approach which has
created multiple growth opportunities that is coupled with savvy competitive strategy With
regard to this approach in 2009 Nordstrom aggregated its inventory across its network and
made it visible by displaying stock from both the Web warehouse and its stores all at once
(see Appendix PA-CVC-IN) This might not seem revolutionary in other industries but a
melding of Web site and store was surprisingly rare in the retailing world (The New York
Times 2010) Thus such fluidity was hard to find among Nordstromrsquos competitors therefore
many retailers at the time were experiencing YOY sales decreases at other stores Although
Nordstrom did have to hire more shipping employees to wrap and ship items from each
store the increased sales more than offset the operational costs (Banker 2011)
Selected by US News as one of Americas Most Connected Companies for its use of
technology to expand shopping options Nordstrom has been aggressive about snapping up
promising Internet ventures to diversify its business and experiment with new retail
platforms Its social media strategy extends well beyond the likes of Facebook Twitter and
YouTube to an array of buzz-generating fashion and photo-sharing sites Recognizing that its
customers always want to stay connected the company introduced complimentary Wi-Fi in
its high-end department stores in 2010 (see Appendix PA-CVC-TE)
Late 2011 it distributed in its flagship stores 6000 modified iTouch devices to sales staff that
can ring up purchases on the spot a process called mobile checkout and track inventory
(see Appendix PA-CVC-POS) Sales personnel also use iPads to assist customers with the
selection of everything from wedding wardrobes to cosmetics to business suits (Hatch 2012)
Despite the high cost of operating these mobile POS devices the integrative thinking of
reducing the potential amount of time customers have to think about their purchases before
they reach the register has translated into higher profits in both Nordstromrsquos 2012 March
Sales Report (see Appendix PA-CVC-SR) According to the company 2012 sales was $173
billion increased 153 per cent compared with total retail sales of $150 billion for the same
period in fiscal 2011 (Forbes 2012)
While customers are trading down Nordstrom has responded by expanding its off-price Rack
stores Moreover as Nordstrom has not been a typical retailer it evolved a new trend to
exploit the strength of the Rack division and benefit from its strong fundamentals in the off-
price space by opening one of its Rack stores a crosswalk away from its flagship in downtown
Seattle (Martinez 2012) It argued that around 60 per cent of the Rack divisions customers
also shop at Nordstroms flagship stores as they want the newest latest greatest thing so for
Nordstrom Corporate Strategy
Page | 12
their convenience they go across to the full-line store and get it the day it comes out
Nordstrom is challenging the conventional wisdom that a retailers full-price and off-price
stores cannibalize each other Much more complete this approach seems to contribute to
the industry risk averseness (De Wit amp Meyer 2010) However it addresses the two poles in
an efficient and effective way On one hand it allows customers from the Rack to shop at the
full line stores where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack they would benefit from just crossing the road and they could shop
there Most importantly is to divert customers from other stores with productsrsquo values are
competed away to the Rack for their less competitive products either less quality or high
prices in this way to increase customer base Nevertheless Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwCKantar Retail 2012)
Figure 4 ndash
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
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Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
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20
A1
pd
f
6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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SCIENCE raquo
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OPINION raquo
Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
BUSINESS raquo
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ARTS raquo
John Oliv er Prepares toHost lsquoThe Daily Showrsquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
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Check out the 10 Best Jobs of
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Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
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246
281
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174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
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Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
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E-mail Alerts
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Printer-friendly
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News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 3
Figure 2 ndash Nordstrom At A Glance (Source Adapted from Google)
Nordstrom Corporate Strategy
Page | 4
1 Executive Summary
This report develops a critical assessment of Nordstrom Inc strategyrsquos implementations in
relation to its industry development and within its organisational context It analyses
Nordstrom Incrsquos distinctive business model that differs from its competitors whereas it is
driven by outpacing performance and its savvy competitive strategy This paper also outlines
the development of its integrative strategic thinking in a way to relieve the tension embodied by
the intense macro environmental forces or as a result of its passion to further grow on the
market and yet to sustain its business heritage as it has been operating in the marketplace for
more than 100 years
In addition the assessment cites the core competences of Nordstromrsquos leading position in the
American marketplace Yet this leading position is driven by strong inherent culture that counts
for the well execution of Nordstromrsquos strategies Nordstrom attributes its distinctive
performance in the marketplace to the implications of its integrated communications which is
tightly aligning between meeting customersrsquo needs and the company activities in order to
differentiate its products offerings and to seize the targeted segments Internally this integrated
communication structure which forms the control perspective allows a clear understanding of
Nordstromrsquos corporate objectives Empowerment which denotes the chaos perspective on the
other hand is highly regarded to create involvement and commitment in order to deliver these
strategies This internal formation is its gateway to lead the industry- whereas the US retail
market is moving towards a Post-Modern market evolution phase which signals an era defined
by wall-less Omni-channel stores (PWC 2012) Nordstrom was the first retailer to integrate its
stores into omni-channels back in 2008 (see Appendix PA-CVC-OC) It also adapts to the new
customers spending habits as noted further in the report And with Nordstromrsquos consistency in
paying attention to the new consumer trends and preferences Nordstrom will be the market
dominant
The conclusion encloses the imperatives for Nordstrom to sustain long term competitive
advantages in the industry and to run a profitable business through efficient anticipation to
what customers need or want and effective recognition to its employeersquos efforts with taking
into consideration the importance to give back to its communities The pillars of its forward
vision strategy will position the company to master the highly dynamic marketplace
Furthermore this format will generate an ethical business to benefit the industry and all
stakeholders
Nordstrom Corporate Strategy
Page | 5
2 Introduction
Nordstrom Inc the worlds number 16th most admired company for 2013 by Fortune is a
leading fashion specialty retailer offering compelling clothing shoes and accessories for men
women and children Since it was founded in 1901 it has been committed to providing its
customers with the best possible service selection quality and value (Nordstrom Company
History 2013) This philosophy has remained unchanged for over 100 years Today the
company mission is still the same
Nordstrom has developed its own niche in the retail industry as an affordable retailer
positioned between mid-tier retailers such as the Macys Inc stores and high-end luxury
retailers including Saks Fifth Avenue and privately-held Neiman Marcus (Wikinvest 2012) Thus
it offers a broad array of over 500 brands targeted toward the whole family through a strong
nationwide network of more than 248 stores situated across 33 states (Nordstrom Company
Facts 2013) Nordstrom differentiates itself by offering inclusive selection of quality
merchandise at affordable prices (see Appendix PA-CVC-AP) it reformed its pricing strategy to
adapt to the macro-environmental forces where its initial primary target market was the upper
echelons of society as noted in depth in the later descriptive analysis based on a proactive
pricing strategy which distinguishes it from other mall-based department store retailers and
benchmark against its rivals
Beyond differentiating its physical product and prices Nordstrom further differentiates itself
based on its services as of an exemplary one thereof its customer experience is characterised
by providing high value proposition that fills the void in the American market for luxury fashion
forward brands at attainable prices Hence Nordstrom has cultivated a distinctive brand in the
marketplace and while it is known for its selection of designer clothing its real claim to fame is
its quality customer service This is driven by a cohesive internal culture to best advocate the
underlying prerequisites of customer service that customers value over and above the product
theyre buying (Nordstrom 2012)
Nordstrom Corporate Strategy
Page | 6
3 Dimensions of the industry development
The branded fashion industry has benefited from demographic shifts and changes in consumer
preferences over time due to globalization and a rise in brand awareness (see Appendix PA-CVC-
ME) With fashion emerging as a means of self-expression consumers are increasingly choosing
branded fashion with images or logos over private label Despite the prolonged instability in the
world economy that has taken its toll on the branded products market - as a result of reduction
in household wealth falling consumer confidence frugal discretionary spending patterns and
shifting consumer demand to value for money bargains and has correlated to erode sales
growth over the last 5 years - the United States still represents the worldrsquos largest branded
apparel market having an estimated share of 29261 The retail fashion industry includes retail
stores and online (PEC Research 2012)
1 According to Global Industry Analysts Inc
Nordstrom Corporate Strategy
Page | 7
E
Threat on New
Entrants
Potential new
entrants face low
barriers ndash
generated by
direct-to-
consumer online
retailers
Buyer Power
Is high to
moderate due to
the empowered
customers with
internet
advances
01234
IncumbentRivals
BuyerPower
SupplierPower
Threat ofSubstitutes
Threat ofNew
Entrants
Competitive Landscape Lens
The impact of peak
cotton prices is associated with
long lag between the purchase of
raw materials and the appearance of
finished apparel goods on store
shelves (Euromonitor 2012)
Price-sensitive consumers trade down
or wait for promotions as a result of the
economic downturn (Euromonitor
2012)
Increasing fuel and transportation
costs as well as labour costs are
continue to rise as the standards of
living in the developing countries
that house many apparel
manufacturers drive inflation (Euromonito 2012)
Rivals-Fierce
competition
The high fragmentation
of the industry leads to
increased competitor
rivalry
Contemporary brands
such as teen fashion are
seeing explosive growth
(Nbcnewyork 2013)
The surge of post digital age
tends towards personalised and
customised products changing
the landscape on the
industry
S
The emerging
cutting-edge 21century
technology
migrates retailers
services online
The increasing pace of
technology is a double-
edged sword that both
enables and requires
agility and
adaptability
T
Each state across the
country has consumer
protection laws in place with
the goal of preventing
businesses from using
misleading marketing
campaigns as a means to
drive sales numbers (Chron
2013)
Labour Concerns Rise amid
Increased Competition amp
Costs
P L
Threat on
Substitutes
Is high because
of the increasing
number of
discount retailers
and supercentres
like Wal-market
Supplier
Power
Is low
because of
the large
number of
suppliers
available
Figure 3 ndash Nordstrom and its web of relational actors
Source Adapted from De Wit and Meyer 2010
Nordstrom Corporate Strategy
Page | 8
4 The Paradoxical Choices
41 THE PARADOX of Compliance versus Choice to the industry development
The low level of differentiation between the individual retailers and the fragmented nature
of the industry results in a very competitive environment which makes it difficult for the
industry to outperform the overall market (PEC Research 2012) Moreover despite the
improving trends witnessed in retail sales along with declining unemployment rate confirms
that the US economy continues to be on track for recovery there is still a general
uncertainty on the economic front with the GDP growth remaining sluggish Zacks Equity
Research (2013) suggested that this uncertainty in the retail industry development and the
instability noted early into the interplay economy forces underlie risky adaptation to this
industry orthodoxy which can even damage the industry itself on the long-term (De Wit and
Meyer 2010) The industry structure was characterised by many retailers being unprepared
for the sharp decline in consumer confidence that occurred in late 2007 opting for a bunker
mentality rather than a strategic one where the most common view was that many retailers
were cutting back in the wrong places of fewer products less service or even less inventory
(Gensler 2008) Another view was that other retailers chose to rest on their laurels without
connecting to the new customer behaviour which was the reason for them to be selected
out of the industry
De Wit and Meyer (2010) suggest that while compliance to the industry rules can be very
beneficial contradicting them can also be strategically valuable In the light of this
compliance to these poor underlying industry dynamics could jeopardise Nordstrom
corporate brand credibility Whereas the industry recipe was held towards trade-offs
between product quality cost and customer service Nordstrom successfully lived up to its
brand promise and has developed an integrative strategic thinking through its innovative
approach of the Omni-channel initiative in 2008 to create new ways of selling (see Appendix
PA-CVC-OC) as well as leverage a masstige2 pricing strategy to adapt to the accelerated pace
of consumers price sensitivity as they are trading down to lower price points or even
cheaper private label brands and also as a mean to reach out to a wide and diverse target
audience
2 Masstige products are defined as premium but attainable and there are two key tenets (1) They are considered luxury or premium products and (2) They have price points that fill the gap between mid-market and super premium (Wikipedia 2013)
Nordstrom Corporate Strategy
Page | 9
This paper illustrates the integrative ways of strategic thinking rather than a solution to
tackle infinity of hostile environmental forces where Nordstrom used the industry dynamics
as a powerful explanatory lens to understand the mainstay of the retail business the
consumers and even go beyond meeting their needs to a new concept of anticipating these
needs Hence it depicts on how to go beyond the crucial stage of transitioning from original
retail model into non-traditional to relate to the new future of retailing
Capitalising on blending both effectiveness and efficiency attributes to yielding a new
concept called ldquothe new efficiencyrdquo that is tied to the practice of attainable prices of high
end luxury products with emphasis on providing top of the line of customer services This
contrasted with the approach of the majority of retailers who are trimming their costs by
competing solely on price which resulted later in their failure to relate to consumersrsquo needs
and retain them This made Nordstrom stand out against its rivals Nordstrom developed an
innovative strategy which demonstrates characteristics of both dichotomous poles to reap
augmented value in the form of ROI (PWC 2012)
Despite applying the masstige pricing strategy service is not scarified even at the lower
priced Nordstrom Rack stores This entails from lowering its cost structure such as taking
the initiative of integrating its inventory by virtually pooling its online and in-store
inventories (see Appendix PA-CVC-IN) As a result of this Nordstrom keeps items in the
inventory for an average of 62 days hence its turning inventory is about twice as fast as its
competitors (Schermerhorn et al 2011) Also Nordstromrsquos dynamic strategy of being highly
responsive to address customersrsquo value-oriented buying behaviour results in the growing
number of its customers and the long term supplydemand balance which accelerate
revenues and lead to scale economies and lower costs with greater agility The perceived
value from adapting to the industry development embodies an opportunity rather than a
threat of not achieving profits because of lowering its prices
Most notably all Nordstrom transformations strategies have built up designated competitive
advantages based on both leadership and dynamics perspectives Right from the start when
Nordstrom was co-founded in 1901 as a shoe store it incorporated exceptional customer
services selection quality and value forming its brand equity Drawing from this mission it
expanded its stores in 1923 By the 1960rsquos the market reached maturity and in an attempt
to diversify itself it opened for the first time in history a department store which ventured
into the clothing market under the name of Nordstrom Best it offered a diverse products
no other competitors offered In order to retain its competitive advantage in 1973 it
Nordstrom Corporate Strategy
Page | 10
opened up its first Nordstrom Rack - the off priced stores - to reinvent new ways to induce
consumers to buy during the economic stagnation (Nordstrom Company History 2013) By
1975 it adapted to the industry dynamics at the time as getting out of the recession and
penetrated into the new American markets
As of Nordstrom recently despite the deterioration of economic conditions Nordstrom
weathered the recession better than most retailers with total sales surpassed $10 billion in
2012 where over $1 billion is coming from its direct sales a first in the companyrsquos history as
e-commerce achieved an impressive 37 per cent growth (Nordstrom Annual Report 2013)
Thereof Nordstrom enjoys a healthy financial position that entailed from diversifying its
portfolio marked with a high level of quality merchandise with strong brand presence in full-
line stores for the newest forward fashion with attainable prices which were at premium
prices before the recession -and in order to retain its customer base it employs tactical
marketing strategies of promotional pricing to offer the implied affordability without
damaging its brand on the long term In addition they also found a good presence in lower
priced value market for new brands with its Rack stores
While its supply chain expedites merchandise in the areas of handling highly innovative
fashion products partnerships are also enhancing the in-store and online experiences In
2012 Nordstrom achieved another pioneering advantage by becoming the only major US
retailer to sell a broad assortment from the renowned British fashion brands Topshop and
Topman to entice younger shoppers and to translate its engagement with young customers
through the digital media into compelling merchandise offering that they favour to push on
the sales (Nordstrom Company History 2013)
As a matter of fact Nordstrom is making all of the right moves to accelerate sales growth in
line with commitment to stay true to its reputation of having excellent customer service
(Inside FFM 2012) Hence its continuum customer centricity ranged from its liberal returns
policy to return items without a receipt to efforts by employees to make a connection with
existing customers and acquire potential ones (Nordstrom Annual Report 2012) Besides its
Fashion Rewards Program features as a shopping-based loyalty as Nordstrom operates in
credit segment through its owned federal savings bank to provide private label cards
(Reuters 2013) On one hand this has been highly regarded among customers and on the
other hand it resulted in robust sales as Nordstrom builds strong value-laden customer
relationships with its customers (Kotler et al 2012)
Nordstrom Corporate Strategy
Page | 11
Nordstromrsquos core competences are derived from its customer centric approach which has
created multiple growth opportunities that is coupled with savvy competitive strategy With
regard to this approach in 2009 Nordstrom aggregated its inventory across its network and
made it visible by displaying stock from both the Web warehouse and its stores all at once
(see Appendix PA-CVC-IN) This might not seem revolutionary in other industries but a
melding of Web site and store was surprisingly rare in the retailing world (The New York
Times 2010) Thus such fluidity was hard to find among Nordstromrsquos competitors therefore
many retailers at the time were experiencing YOY sales decreases at other stores Although
Nordstrom did have to hire more shipping employees to wrap and ship items from each
store the increased sales more than offset the operational costs (Banker 2011)
Selected by US News as one of Americas Most Connected Companies for its use of
technology to expand shopping options Nordstrom has been aggressive about snapping up
promising Internet ventures to diversify its business and experiment with new retail
platforms Its social media strategy extends well beyond the likes of Facebook Twitter and
YouTube to an array of buzz-generating fashion and photo-sharing sites Recognizing that its
customers always want to stay connected the company introduced complimentary Wi-Fi in
its high-end department stores in 2010 (see Appendix PA-CVC-TE)
Late 2011 it distributed in its flagship stores 6000 modified iTouch devices to sales staff that
can ring up purchases on the spot a process called mobile checkout and track inventory
(see Appendix PA-CVC-POS) Sales personnel also use iPads to assist customers with the
selection of everything from wedding wardrobes to cosmetics to business suits (Hatch 2012)
Despite the high cost of operating these mobile POS devices the integrative thinking of
reducing the potential amount of time customers have to think about their purchases before
they reach the register has translated into higher profits in both Nordstromrsquos 2012 March
Sales Report (see Appendix PA-CVC-SR) According to the company 2012 sales was $173
billion increased 153 per cent compared with total retail sales of $150 billion for the same
period in fiscal 2011 (Forbes 2012)
While customers are trading down Nordstrom has responded by expanding its off-price Rack
stores Moreover as Nordstrom has not been a typical retailer it evolved a new trend to
exploit the strength of the Rack division and benefit from its strong fundamentals in the off-
price space by opening one of its Rack stores a crosswalk away from its flagship in downtown
Seattle (Martinez 2012) It argued that around 60 per cent of the Rack divisions customers
also shop at Nordstroms flagship stores as they want the newest latest greatest thing so for
Nordstrom Corporate Strategy
Page | 12
their convenience they go across to the full-line store and get it the day it comes out
Nordstrom is challenging the conventional wisdom that a retailers full-price and off-price
stores cannibalize each other Much more complete this approach seems to contribute to
the industry risk averseness (De Wit amp Meyer 2010) However it addresses the two poles in
an efficient and effective way On one hand it allows customers from the Rack to shop at the
full line stores where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack they would benefit from just crossing the road and they could shop
there Most importantly is to divert customers from other stores with productsrsquo values are
competed away to the Rack for their less competitive products either less quality or high
prices in this way to increase customer base Nevertheless Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwCKantar Retail 2012)
Figure 4 ndash
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
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0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
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20
A1
pd
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
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RELATED CONTENT
Survey Back-to-school sales may
soar 16
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engage w ith customers
Let the converged retailing evolution
begin
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social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
News
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SPECS Show
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Digital Edition
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
Go to Complete List raquo
Log in to see w hat your friends are sharingon nytimescom Privacy Policy | WhatrsquosThis
Whatrsquos Popular Now
Most Popular - Business
1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
1 0 Googlersquos Washington Insider
Trash Burning With a Clean-Energy TwistSPECIAL REPORT SMART BUSINESS raquo
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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wwwsamanagecomAsset_Management
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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BUSINESS raquo
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ARTS raquo
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REPRINTS
INSIDE NYTIMESCOM
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
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Democrats New Argument Its A GoodDemocrats New Argument Its A GoodThing That Obamacare DoublesThing That Obamacare DoublesIndividual Health InsuranceIndividual Health InsurancePremiumsPremiums +139678 views
War In Syria Highlights Why USWar In Syria Highlights Why USNeeds Fifth-Gen FightersNeeds Fifth-Gen Fighters +37973 views
Dept of Homeland Security Forced toDept of Homeland Security Forced toRelease List of Keywords Used toRelease List of Keywords Used toMonitor Social Networking SitesMonitor Social Networking Sites
+31924 views
246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
check if an alternative size or color is available elsewhere without needing a
register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
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A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
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Nordstromcom | About Us
investor relations press room nordstrom cares
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News Release
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ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 4
1 Executive Summary
This report develops a critical assessment of Nordstrom Inc strategyrsquos implementations in
relation to its industry development and within its organisational context It analyses
Nordstrom Incrsquos distinctive business model that differs from its competitors whereas it is
driven by outpacing performance and its savvy competitive strategy This paper also outlines
the development of its integrative strategic thinking in a way to relieve the tension embodied by
the intense macro environmental forces or as a result of its passion to further grow on the
market and yet to sustain its business heritage as it has been operating in the marketplace for
more than 100 years
In addition the assessment cites the core competences of Nordstromrsquos leading position in the
American marketplace Yet this leading position is driven by strong inherent culture that counts
for the well execution of Nordstromrsquos strategies Nordstrom attributes its distinctive
performance in the marketplace to the implications of its integrated communications which is
tightly aligning between meeting customersrsquo needs and the company activities in order to
differentiate its products offerings and to seize the targeted segments Internally this integrated
communication structure which forms the control perspective allows a clear understanding of
Nordstromrsquos corporate objectives Empowerment which denotes the chaos perspective on the
other hand is highly regarded to create involvement and commitment in order to deliver these
strategies This internal formation is its gateway to lead the industry- whereas the US retail
market is moving towards a Post-Modern market evolution phase which signals an era defined
by wall-less Omni-channel stores (PWC 2012) Nordstrom was the first retailer to integrate its
stores into omni-channels back in 2008 (see Appendix PA-CVC-OC) It also adapts to the new
customers spending habits as noted further in the report And with Nordstromrsquos consistency in
paying attention to the new consumer trends and preferences Nordstrom will be the market
dominant
The conclusion encloses the imperatives for Nordstrom to sustain long term competitive
advantages in the industry and to run a profitable business through efficient anticipation to
what customers need or want and effective recognition to its employeersquos efforts with taking
into consideration the importance to give back to its communities The pillars of its forward
vision strategy will position the company to master the highly dynamic marketplace
Furthermore this format will generate an ethical business to benefit the industry and all
stakeholders
Nordstrom Corporate Strategy
Page | 5
2 Introduction
Nordstrom Inc the worlds number 16th most admired company for 2013 by Fortune is a
leading fashion specialty retailer offering compelling clothing shoes and accessories for men
women and children Since it was founded in 1901 it has been committed to providing its
customers with the best possible service selection quality and value (Nordstrom Company
History 2013) This philosophy has remained unchanged for over 100 years Today the
company mission is still the same
Nordstrom has developed its own niche in the retail industry as an affordable retailer
positioned between mid-tier retailers such as the Macys Inc stores and high-end luxury
retailers including Saks Fifth Avenue and privately-held Neiman Marcus (Wikinvest 2012) Thus
it offers a broad array of over 500 brands targeted toward the whole family through a strong
nationwide network of more than 248 stores situated across 33 states (Nordstrom Company
Facts 2013) Nordstrom differentiates itself by offering inclusive selection of quality
merchandise at affordable prices (see Appendix PA-CVC-AP) it reformed its pricing strategy to
adapt to the macro-environmental forces where its initial primary target market was the upper
echelons of society as noted in depth in the later descriptive analysis based on a proactive
pricing strategy which distinguishes it from other mall-based department store retailers and
benchmark against its rivals
Beyond differentiating its physical product and prices Nordstrom further differentiates itself
based on its services as of an exemplary one thereof its customer experience is characterised
by providing high value proposition that fills the void in the American market for luxury fashion
forward brands at attainable prices Hence Nordstrom has cultivated a distinctive brand in the
marketplace and while it is known for its selection of designer clothing its real claim to fame is
its quality customer service This is driven by a cohesive internal culture to best advocate the
underlying prerequisites of customer service that customers value over and above the product
theyre buying (Nordstrom 2012)
Nordstrom Corporate Strategy
Page | 6
3 Dimensions of the industry development
The branded fashion industry has benefited from demographic shifts and changes in consumer
preferences over time due to globalization and a rise in brand awareness (see Appendix PA-CVC-
ME) With fashion emerging as a means of self-expression consumers are increasingly choosing
branded fashion with images or logos over private label Despite the prolonged instability in the
world economy that has taken its toll on the branded products market - as a result of reduction
in household wealth falling consumer confidence frugal discretionary spending patterns and
shifting consumer demand to value for money bargains and has correlated to erode sales
growth over the last 5 years - the United States still represents the worldrsquos largest branded
apparel market having an estimated share of 29261 The retail fashion industry includes retail
stores and online (PEC Research 2012)
1 According to Global Industry Analysts Inc
Nordstrom Corporate Strategy
Page | 7
E
Threat on New
Entrants
Potential new
entrants face low
barriers ndash
generated by
direct-to-
consumer online
retailers
Buyer Power
Is high to
moderate due to
the empowered
customers with
internet
advances
01234
IncumbentRivals
BuyerPower
SupplierPower
Threat ofSubstitutes
Threat ofNew
Entrants
Competitive Landscape Lens
The impact of peak
cotton prices is associated with
long lag between the purchase of
raw materials and the appearance of
finished apparel goods on store
shelves (Euromonitor 2012)
Price-sensitive consumers trade down
or wait for promotions as a result of the
economic downturn (Euromonitor
2012)
Increasing fuel and transportation
costs as well as labour costs are
continue to rise as the standards of
living in the developing countries
that house many apparel
manufacturers drive inflation (Euromonito 2012)
Rivals-Fierce
competition
The high fragmentation
of the industry leads to
increased competitor
rivalry
Contemporary brands
such as teen fashion are
seeing explosive growth
(Nbcnewyork 2013)
The surge of post digital age
tends towards personalised and
customised products changing
the landscape on the
industry
S
The emerging
cutting-edge 21century
technology
migrates retailers
services online
The increasing pace of
technology is a double-
edged sword that both
enables and requires
agility and
adaptability
T
Each state across the
country has consumer
protection laws in place with
the goal of preventing
businesses from using
misleading marketing
campaigns as a means to
drive sales numbers (Chron
2013)
Labour Concerns Rise amid
Increased Competition amp
Costs
P L
Threat on
Substitutes
Is high because
of the increasing
number of
discount retailers
and supercentres
like Wal-market
Supplier
Power
Is low
because of
the large
number of
suppliers
available
Figure 3 ndash Nordstrom and its web of relational actors
Source Adapted from De Wit and Meyer 2010
Nordstrom Corporate Strategy
Page | 8
4 The Paradoxical Choices
41 THE PARADOX of Compliance versus Choice to the industry development
The low level of differentiation between the individual retailers and the fragmented nature
of the industry results in a very competitive environment which makes it difficult for the
industry to outperform the overall market (PEC Research 2012) Moreover despite the
improving trends witnessed in retail sales along with declining unemployment rate confirms
that the US economy continues to be on track for recovery there is still a general
uncertainty on the economic front with the GDP growth remaining sluggish Zacks Equity
Research (2013) suggested that this uncertainty in the retail industry development and the
instability noted early into the interplay economy forces underlie risky adaptation to this
industry orthodoxy which can even damage the industry itself on the long-term (De Wit and
Meyer 2010) The industry structure was characterised by many retailers being unprepared
for the sharp decline in consumer confidence that occurred in late 2007 opting for a bunker
mentality rather than a strategic one where the most common view was that many retailers
were cutting back in the wrong places of fewer products less service or even less inventory
(Gensler 2008) Another view was that other retailers chose to rest on their laurels without
connecting to the new customer behaviour which was the reason for them to be selected
out of the industry
De Wit and Meyer (2010) suggest that while compliance to the industry rules can be very
beneficial contradicting them can also be strategically valuable In the light of this
compliance to these poor underlying industry dynamics could jeopardise Nordstrom
corporate brand credibility Whereas the industry recipe was held towards trade-offs
between product quality cost and customer service Nordstrom successfully lived up to its
brand promise and has developed an integrative strategic thinking through its innovative
approach of the Omni-channel initiative in 2008 to create new ways of selling (see Appendix
PA-CVC-OC) as well as leverage a masstige2 pricing strategy to adapt to the accelerated pace
of consumers price sensitivity as they are trading down to lower price points or even
cheaper private label brands and also as a mean to reach out to a wide and diverse target
audience
2 Masstige products are defined as premium but attainable and there are two key tenets (1) They are considered luxury or premium products and (2) They have price points that fill the gap between mid-market and super premium (Wikipedia 2013)
Nordstrom Corporate Strategy
Page | 9
This paper illustrates the integrative ways of strategic thinking rather than a solution to
tackle infinity of hostile environmental forces where Nordstrom used the industry dynamics
as a powerful explanatory lens to understand the mainstay of the retail business the
consumers and even go beyond meeting their needs to a new concept of anticipating these
needs Hence it depicts on how to go beyond the crucial stage of transitioning from original
retail model into non-traditional to relate to the new future of retailing
Capitalising on blending both effectiveness and efficiency attributes to yielding a new
concept called ldquothe new efficiencyrdquo that is tied to the practice of attainable prices of high
end luxury products with emphasis on providing top of the line of customer services This
contrasted with the approach of the majority of retailers who are trimming their costs by
competing solely on price which resulted later in their failure to relate to consumersrsquo needs
and retain them This made Nordstrom stand out against its rivals Nordstrom developed an
innovative strategy which demonstrates characteristics of both dichotomous poles to reap
augmented value in the form of ROI (PWC 2012)
Despite applying the masstige pricing strategy service is not scarified even at the lower
priced Nordstrom Rack stores This entails from lowering its cost structure such as taking
the initiative of integrating its inventory by virtually pooling its online and in-store
inventories (see Appendix PA-CVC-IN) As a result of this Nordstrom keeps items in the
inventory for an average of 62 days hence its turning inventory is about twice as fast as its
competitors (Schermerhorn et al 2011) Also Nordstromrsquos dynamic strategy of being highly
responsive to address customersrsquo value-oriented buying behaviour results in the growing
number of its customers and the long term supplydemand balance which accelerate
revenues and lead to scale economies and lower costs with greater agility The perceived
value from adapting to the industry development embodies an opportunity rather than a
threat of not achieving profits because of lowering its prices
Most notably all Nordstrom transformations strategies have built up designated competitive
advantages based on both leadership and dynamics perspectives Right from the start when
Nordstrom was co-founded in 1901 as a shoe store it incorporated exceptional customer
services selection quality and value forming its brand equity Drawing from this mission it
expanded its stores in 1923 By the 1960rsquos the market reached maturity and in an attempt
to diversify itself it opened for the first time in history a department store which ventured
into the clothing market under the name of Nordstrom Best it offered a diverse products
no other competitors offered In order to retain its competitive advantage in 1973 it
Nordstrom Corporate Strategy
Page | 10
opened up its first Nordstrom Rack - the off priced stores - to reinvent new ways to induce
consumers to buy during the economic stagnation (Nordstrom Company History 2013) By
1975 it adapted to the industry dynamics at the time as getting out of the recession and
penetrated into the new American markets
As of Nordstrom recently despite the deterioration of economic conditions Nordstrom
weathered the recession better than most retailers with total sales surpassed $10 billion in
2012 where over $1 billion is coming from its direct sales a first in the companyrsquos history as
e-commerce achieved an impressive 37 per cent growth (Nordstrom Annual Report 2013)
Thereof Nordstrom enjoys a healthy financial position that entailed from diversifying its
portfolio marked with a high level of quality merchandise with strong brand presence in full-
line stores for the newest forward fashion with attainable prices which were at premium
prices before the recession -and in order to retain its customer base it employs tactical
marketing strategies of promotional pricing to offer the implied affordability without
damaging its brand on the long term In addition they also found a good presence in lower
priced value market for new brands with its Rack stores
While its supply chain expedites merchandise in the areas of handling highly innovative
fashion products partnerships are also enhancing the in-store and online experiences In
2012 Nordstrom achieved another pioneering advantage by becoming the only major US
retailer to sell a broad assortment from the renowned British fashion brands Topshop and
Topman to entice younger shoppers and to translate its engagement with young customers
through the digital media into compelling merchandise offering that they favour to push on
the sales (Nordstrom Company History 2013)
As a matter of fact Nordstrom is making all of the right moves to accelerate sales growth in
line with commitment to stay true to its reputation of having excellent customer service
(Inside FFM 2012) Hence its continuum customer centricity ranged from its liberal returns
policy to return items without a receipt to efforts by employees to make a connection with
existing customers and acquire potential ones (Nordstrom Annual Report 2012) Besides its
Fashion Rewards Program features as a shopping-based loyalty as Nordstrom operates in
credit segment through its owned federal savings bank to provide private label cards
(Reuters 2013) On one hand this has been highly regarded among customers and on the
other hand it resulted in robust sales as Nordstrom builds strong value-laden customer
relationships with its customers (Kotler et al 2012)
Nordstrom Corporate Strategy
Page | 11
Nordstromrsquos core competences are derived from its customer centric approach which has
created multiple growth opportunities that is coupled with savvy competitive strategy With
regard to this approach in 2009 Nordstrom aggregated its inventory across its network and
made it visible by displaying stock from both the Web warehouse and its stores all at once
(see Appendix PA-CVC-IN) This might not seem revolutionary in other industries but a
melding of Web site and store was surprisingly rare in the retailing world (The New York
Times 2010) Thus such fluidity was hard to find among Nordstromrsquos competitors therefore
many retailers at the time were experiencing YOY sales decreases at other stores Although
Nordstrom did have to hire more shipping employees to wrap and ship items from each
store the increased sales more than offset the operational costs (Banker 2011)
Selected by US News as one of Americas Most Connected Companies for its use of
technology to expand shopping options Nordstrom has been aggressive about snapping up
promising Internet ventures to diversify its business and experiment with new retail
platforms Its social media strategy extends well beyond the likes of Facebook Twitter and
YouTube to an array of buzz-generating fashion and photo-sharing sites Recognizing that its
customers always want to stay connected the company introduced complimentary Wi-Fi in
its high-end department stores in 2010 (see Appendix PA-CVC-TE)
Late 2011 it distributed in its flagship stores 6000 modified iTouch devices to sales staff that
can ring up purchases on the spot a process called mobile checkout and track inventory
(see Appendix PA-CVC-POS) Sales personnel also use iPads to assist customers with the
selection of everything from wedding wardrobes to cosmetics to business suits (Hatch 2012)
Despite the high cost of operating these mobile POS devices the integrative thinking of
reducing the potential amount of time customers have to think about their purchases before
they reach the register has translated into higher profits in both Nordstromrsquos 2012 March
Sales Report (see Appendix PA-CVC-SR) According to the company 2012 sales was $173
billion increased 153 per cent compared with total retail sales of $150 billion for the same
period in fiscal 2011 (Forbes 2012)
While customers are trading down Nordstrom has responded by expanding its off-price Rack
stores Moreover as Nordstrom has not been a typical retailer it evolved a new trend to
exploit the strength of the Rack division and benefit from its strong fundamentals in the off-
price space by opening one of its Rack stores a crosswalk away from its flagship in downtown
Seattle (Martinez 2012) It argued that around 60 per cent of the Rack divisions customers
also shop at Nordstroms flagship stores as they want the newest latest greatest thing so for
Nordstrom Corporate Strategy
Page | 12
their convenience they go across to the full-line store and get it the day it comes out
Nordstrom is challenging the conventional wisdom that a retailers full-price and off-price
stores cannibalize each other Much more complete this approach seems to contribute to
the industry risk averseness (De Wit amp Meyer 2010) However it addresses the two poles in
an efficient and effective way On one hand it allows customers from the Rack to shop at the
full line stores where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack they would benefit from just crossing the road and they could shop
there Most importantly is to divert customers from other stores with productsrsquo values are
competed away to the Rack for their less competitive products either less quality or high
prices in this way to increase customer base Nevertheless Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwCKantar Retail 2012)
Figure 4 ndash
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
n
20
A1
pd
f
6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
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Diamond Chain Store Age
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Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
Go to Complete List raquo
Log in to see w hat your friends are sharingon nytimescom Privacy Policy | WhatrsquosThis
Whatrsquos Popular Now
Most Popular - Business
1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
1 0 Googlersquos Washington Insider
Trash Burning With a Clean-Energy TwistSPECIAL REPORT SMART BUSINESS raquo
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Lessons Learned Czech Banks Thrive
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
Ads by Google whats this
You Could Be Owed pound2400If Youve Had A Credit Card
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BOOMING raquo
A Reluctant West PointPrince on Prom Night
OPINION raquo
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SCIENCE raquo
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OPINION raquo
Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
BUSINESS raquo
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ARTS raquo
John Oliv er Prepares toHost lsquoThe Daily Showrsquo
Home World US NY Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top
SIGN IN TO E-
REPRINTS
INSIDE NYTIMESCOM
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
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See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
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ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 5
2 Introduction
Nordstrom Inc the worlds number 16th most admired company for 2013 by Fortune is a
leading fashion specialty retailer offering compelling clothing shoes and accessories for men
women and children Since it was founded in 1901 it has been committed to providing its
customers with the best possible service selection quality and value (Nordstrom Company
History 2013) This philosophy has remained unchanged for over 100 years Today the
company mission is still the same
Nordstrom has developed its own niche in the retail industry as an affordable retailer
positioned between mid-tier retailers such as the Macys Inc stores and high-end luxury
retailers including Saks Fifth Avenue and privately-held Neiman Marcus (Wikinvest 2012) Thus
it offers a broad array of over 500 brands targeted toward the whole family through a strong
nationwide network of more than 248 stores situated across 33 states (Nordstrom Company
Facts 2013) Nordstrom differentiates itself by offering inclusive selection of quality
merchandise at affordable prices (see Appendix PA-CVC-AP) it reformed its pricing strategy to
adapt to the macro-environmental forces where its initial primary target market was the upper
echelons of society as noted in depth in the later descriptive analysis based on a proactive
pricing strategy which distinguishes it from other mall-based department store retailers and
benchmark against its rivals
Beyond differentiating its physical product and prices Nordstrom further differentiates itself
based on its services as of an exemplary one thereof its customer experience is characterised
by providing high value proposition that fills the void in the American market for luxury fashion
forward brands at attainable prices Hence Nordstrom has cultivated a distinctive brand in the
marketplace and while it is known for its selection of designer clothing its real claim to fame is
its quality customer service This is driven by a cohesive internal culture to best advocate the
underlying prerequisites of customer service that customers value over and above the product
theyre buying (Nordstrom 2012)
Nordstrom Corporate Strategy
Page | 6
3 Dimensions of the industry development
The branded fashion industry has benefited from demographic shifts and changes in consumer
preferences over time due to globalization and a rise in brand awareness (see Appendix PA-CVC-
ME) With fashion emerging as a means of self-expression consumers are increasingly choosing
branded fashion with images or logos over private label Despite the prolonged instability in the
world economy that has taken its toll on the branded products market - as a result of reduction
in household wealth falling consumer confidence frugal discretionary spending patterns and
shifting consumer demand to value for money bargains and has correlated to erode sales
growth over the last 5 years - the United States still represents the worldrsquos largest branded
apparel market having an estimated share of 29261 The retail fashion industry includes retail
stores and online (PEC Research 2012)
1 According to Global Industry Analysts Inc
Nordstrom Corporate Strategy
Page | 7
E
Threat on New
Entrants
Potential new
entrants face low
barriers ndash
generated by
direct-to-
consumer online
retailers
Buyer Power
Is high to
moderate due to
the empowered
customers with
internet
advances
01234
IncumbentRivals
BuyerPower
SupplierPower
Threat ofSubstitutes
Threat ofNew
Entrants
Competitive Landscape Lens
The impact of peak
cotton prices is associated with
long lag between the purchase of
raw materials and the appearance of
finished apparel goods on store
shelves (Euromonitor 2012)
Price-sensitive consumers trade down
or wait for promotions as a result of the
economic downturn (Euromonitor
2012)
Increasing fuel and transportation
costs as well as labour costs are
continue to rise as the standards of
living in the developing countries
that house many apparel
manufacturers drive inflation (Euromonito 2012)
Rivals-Fierce
competition
The high fragmentation
of the industry leads to
increased competitor
rivalry
Contemporary brands
such as teen fashion are
seeing explosive growth
(Nbcnewyork 2013)
The surge of post digital age
tends towards personalised and
customised products changing
the landscape on the
industry
S
The emerging
cutting-edge 21century
technology
migrates retailers
services online
The increasing pace of
technology is a double-
edged sword that both
enables and requires
agility and
adaptability
T
Each state across the
country has consumer
protection laws in place with
the goal of preventing
businesses from using
misleading marketing
campaigns as a means to
drive sales numbers (Chron
2013)
Labour Concerns Rise amid
Increased Competition amp
Costs
P L
Threat on
Substitutes
Is high because
of the increasing
number of
discount retailers
and supercentres
like Wal-market
Supplier
Power
Is low
because of
the large
number of
suppliers
available
Figure 3 ndash Nordstrom and its web of relational actors
Source Adapted from De Wit and Meyer 2010
Nordstrom Corporate Strategy
Page | 8
4 The Paradoxical Choices
41 THE PARADOX of Compliance versus Choice to the industry development
The low level of differentiation between the individual retailers and the fragmented nature
of the industry results in a very competitive environment which makes it difficult for the
industry to outperform the overall market (PEC Research 2012) Moreover despite the
improving trends witnessed in retail sales along with declining unemployment rate confirms
that the US economy continues to be on track for recovery there is still a general
uncertainty on the economic front with the GDP growth remaining sluggish Zacks Equity
Research (2013) suggested that this uncertainty in the retail industry development and the
instability noted early into the interplay economy forces underlie risky adaptation to this
industry orthodoxy which can even damage the industry itself on the long-term (De Wit and
Meyer 2010) The industry structure was characterised by many retailers being unprepared
for the sharp decline in consumer confidence that occurred in late 2007 opting for a bunker
mentality rather than a strategic one where the most common view was that many retailers
were cutting back in the wrong places of fewer products less service or even less inventory
(Gensler 2008) Another view was that other retailers chose to rest on their laurels without
connecting to the new customer behaviour which was the reason for them to be selected
out of the industry
De Wit and Meyer (2010) suggest that while compliance to the industry rules can be very
beneficial contradicting them can also be strategically valuable In the light of this
compliance to these poor underlying industry dynamics could jeopardise Nordstrom
corporate brand credibility Whereas the industry recipe was held towards trade-offs
between product quality cost and customer service Nordstrom successfully lived up to its
brand promise and has developed an integrative strategic thinking through its innovative
approach of the Omni-channel initiative in 2008 to create new ways of selling (see Appendix
PA-CVC-OC) as well as leverage a masstige2 pricing strategy to adapt to the accelerated pace
of consumers price sensitivity as they are trading down to lower price points or even
cheaper private label brands and also as a mean to reach out to a wide and diverse target
audience
2 Masstige products are defined as premium but attainable and there are two key tenets (1) They are considered luxury or premium products and (2) They have price points that fill the gap between mid-market and super premium (Wikipedia 2013)
Nordstrom Corporate Strategy
Page | 9
This paper illustrates the integrative ways of strategic thinking rather than a solution to
tackle infinity of hostile environmental forces where Nordstrom used the industry dynamics
as a powerful explanatory lens to understand the mainstay of the retail business the
consumers and even go beyond meeting their needs to a new concept of anticipating these
needs Hence it depicts on how to go beyond the crucial stage of transitioning from original
retail model into non-traditional to relate to the new future of retailing
Capitalising on blending both effectiveness and efficiency attributes to yielding a new
concept called ldquothe new efficiencyrdquo that is tied to the practice of attainable prices of high
end luxury products with emphasis on providing top of the line of customer services This
contrasted with the approach of the majority of retailers who are trimming their costs by
competing solely on price which resulted later in their failure to relate to consumersrsquo needs
and retain them This made Nordstrom stand out against its rivals Nordstrom developed an
innovative strategy which demonstrates characteristics of both dichotomous poles to reap
augmented value in the form of ROI (PWC 2012)
Despite applying the masstige pricing strategy service is not scarified even at the lower
priced Nordstrom Rack stores This entails from lowering its cost structure such as taking
the initiative of integrating its inventory by virtually pooling its online and in-store
inventories (see Appendix PA-CVC-IN) As a result of this Nordstrom keeps items in the
inventory for an average of 62 days hence its turning inventory is about twice as fast as its
competitors (Schermerhorn et al 2011) Also Nordstromrsquos dynamic strategy of being highly
responsive to address customersrsquo value-oriented buying behaviour results in the growing
number of its customers and the long term supplydemand balance which accelerate
revenues and lead to scale economies and lower costs with greater agility The perceived
value from adapting to the industry development embodies an opportunity rather than a
threat of not achieving profits because of lowering its prices
Most notably all Nordstrom transformations strategies have built up designated competitive
advantages based on both leadership and dynamics perspectives Right from the start when
Nordstrom was co-founded in 1901 as a shoe store it incorporated exceptional customer
services selection quality and value forming its brand equity Drawing from this mission it
expanded its stores in 1923 By the 1960rsquos the market reached maturity and in an attempt
to diversify itself it opened for the first time in history a department store which ventured
into the clothing market under the name of Nordstrom Best it offered a diverse products
no other competitors offered In order to retain its competitive advantage in 1973 it
Nordstrom Corporate Strategy
Page | 10
opened up its first Nordstrom Rack - the off priced stores - to reinvent new ways to induce
consumers to buy during the economic stagnation (Nordstrom Company History 2013) By
1975 it adapted to the industry dynamics at the time as getting out of the recession and
penetrated into the new American markets
As of Nordstrom recently despite the deterioration of economic conditions Nordstrom
weathered the recession better than most retailers with total sales surpassed $10 billion in
2012 where over $1 billion is coming from its direct sales a first in the companyrsquos history as
e-commerce achieved an impressive 37 per cent growth (Nordstrom Annual Report 2013)
Thereof Nordstrom enjoys a healthy financial position that entailed from diversifying its
portfolio marked with a high level of quality merchandise with strong brand presence in full-
line stores for the newest forward fashion with attainable prices which were at premium
prices before the recession -and in order to retain its customer base it employs tactical
marketing strategies of promotional pricing to offer the implied affordability without
damaging its brand on the long term In addition they also found a good presence in lower
priced value market for new brands with its Rack stores
While its supply chain expedites merchandise in the areas of handling highly innovative
fashion products partnerships are also enhancing the in-store and online experiences In
2012 Nordstrom achieved another pioneering advantage by becoming the only major US
retailer to sell a broad assortment from the renowned British fashion brands Topshop and
Topman to entice younger shoppers and to translate its engagement with young customers
through the digital media into compelling merchandise offering that they favour to push on
the sales (Nordstrom Company History 2013)
As a matter of fact Nordstrom is making all of the right moves to accelerate sales growth in
line with commitment to stay true to its reputation of having excellent customer service
(Inside FFM 2012) Hence its continuum customer centricity ranged from its liberal returns
policy to return items without a receipt to efforts by employees to make a connection with
existing customers and acquire potential ones (Nordstrom Annual Report 2012) Besides its
Fashion Rewards Program features as a shopping-based loyalty as Nordstrom operates in
credit segment through its owned federal savings bank to provide private label cards
(Reuters 2013) On one hand this has been highly regarded among customers and on the
other hand it resulted in robust sales as Nordstrom builds strong value-laden customer
relationships with its customers (Kotler et al 2012)
Nordstrom Corporate Strategy
Page | 11
Nordstromrsquos core competences are derived from its customer centric approach which has
created multiple growth opportunities that is coupled with savvy competitive strategy With
regard to this approach in 2009 Nordstrom aggregated its inventory across its network and
made it visible by displaying stock from both the Web warehouse and its stores all at once
(see Appendix PA-CVC-IN) This might not seem revolutionary in other industries but a
melding of Web site and store was surprisingly rare in the retailing world (The New York
Times 2010) Thus such fluidity was hard to find among Nordstromrsquos competitors therefore
many retailers at the time were experiencing YOY sales decreases at other stores Although
Nordstrom did have to hire more shipping employees to wrap and ship items from each
store the increased sales more than offset the operational costs (Banker 2011)
Selected by US News as one of Americas Most Connected Companies for its use of
technology to expand shopping options Nordstrom has been aggressive about snapping up
promising Internet ventures to diversify its business and experiment with new retail
platforms Its social media strategy extends well beyond the likes of Facebook Twitter and
YouTube to an array of buzz-generating fashion and photo-sharing sites Recognizing that its
customers always want to stay connected the company introduced complimentary Wi-Fi in
its high-end department stores in 2010 (see Appendix PA-CVC-TE)
Late 2011 it distributed in its flagship stores 6000 modified iTouch devices to sales staff that
can ring up purchases on the spot a process called mobile checkout and track inventory
(see Appendix PA-CVC-POS) Sales personnel also use iPads to assist customers with the
selection of everything from wedding wardrobes to cosmetics to business suits (Hatch 2012)
Despite the high cost of operating these mobile POS devices the integrative thinking of
reducing the potential amount of time customers have to think about their purchases before
they reach the register has translated into higher profits in both Nordstromrsquos 2012 March
Sales Report (see Appendix PA-CVC-SR) According to the company 2012 sales was $173
billion increased 153 per cent compared with total retail sales of $150 billion for the same
period in fiscal 2011 (Forbes 2012)
While customers are trading down Nordstrom has responded by expanding its off-price Rack
stores Moreover as Nordstrom has not been a typical retailer it evolved a new trend to
exploit the strength of the Rack division and benefit from its strong fundamentals in the off-
price space by opening one of its Rack stores a crosswalk away from its flagship in downtown
Seattle (Martinez 2012) It argued that around 60 per cent of the Rack divisions customers
also shop at Nordstroms flagship stores as they want the newest latest greatest thing so for
Nordstrom Corporate Strategy
Page | 12
their convenience they go across to the full-line store and get it the day it comes out
Nordstrom is challenging the conventional wisdom that a retailers full-price and off-price
stores cannibalize each other Much more complete this approach seems to contribute to
the industry risk averseness (De Wit amp Meyer 2010) However it addresses the two poles in
an efficient and effective way On one hand it allows customers from the Rack to shop at the
full line stores where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack they would benefit from just crossing the road and they could shop
there Most importantly is to divert customers from other stores with productsrsquo values are
competed away to the Rack for their less competitive products either less quality or high
prices in this way to increase customer base Nevertheless Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwCKantar Retail 2012)
Figure 4 ndash
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
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20
A1
pd
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
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7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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BUSINESS raquo
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ARTS raquo
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REPRINTS
INSIDE NYTIMESCOM
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
Game Of Thrones Season 3 Episode 9Game Of Thrones Season 3 Episode 9Review The Rains Of CastamereReview The Rains Of Castamere
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Democrats New Argument Its A GoodDemocrats New Argument Its A GoodThing That Obamacare DoublesThing That Obamacare DoublesIndividual Health InsuranceIndividual Health InsurancePremiumsPremiums +139678 views
War In Syria Highlights Why USWar In Syria Highlights Why USNeeds Fifth-Gen FightersNeeds Fifth-Gen Fighters +37973 views
Dept of Homeland Security Forced toDept of Homeland Security Forced toRelease List of Keywords Used toRelease List of Keywords Used toMonitor Social Networking SitesMonitor Social Networking Sites
+31924 views
246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
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See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
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Amazon AWS Takes Down Netflix On ChristmasEve 102721 views
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Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
MO RE F RO M K EL L Y C L A Y
IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
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Stock Information
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Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 6
3 Dimensions of the industry development
The branded fashion industry has benefited from demographic shifts and changes in consumer
preferences over time due to globalization and a rise in brand awareness (see Appendix PA-CVC-
ME) With fashion emerging as a means of self-expression consumers are increasingly choosing
branded fashion with images or logos over private label Despite the prolonged instability in the
world economy that has taken its toll on the branded products market - as a result of reduction
in household wealth falling consumer confidence frugal discretionary spending patterns and
shifting consumer demand to value for money bargains and has correlated to erode sales
growth over the last 5 years - the United States still represents the worldrsquos largest branded
apparel market having an estimated share of 29261 The retail fashion industry includes retail
stores and online (PEC Research 2012)
1 According to Global Industry Analysts Inc
Nordstrom Corporate Strategy
Page | 7
E
Threat on New
Entrants
Potential new
entrants face low
barriers ndash
generated by
direct-to-
consumer online
retailers
Buyer Power
Is high to
moderate due to
the empowered
customers with
internet
advances
01234
IncumbentRivals
BuyerPower
SupplierPower
Threat ofSubstitutes
Threat ofNew
Entrants
Competitive Landscape Lens
The impact of peak
cotton prices is associated with
long lag between the purchase of
raw materials and the appearance of
finished apparel goods on store
shelves (Euromonitor 2012)
Price-sensitive consumers trade down
or wait for promotions as a result of the
economic downturn (Euromonitor
2012)
Increasing fuel and transportation
costs as well as labour costs are
continue to rise as the standards of
living in the developing countries
that house many apparel
manufacturers drive inflation (Euromonito 2012)
Rivals-Fierce
competition
The high fragmentation
of the industry leads to
increased competitor
rivalry
Contemporary brands
such as teen fashion are
seeing explosive growth
(Nbcnewyork 2013)
The surge of post digital age
tends towards personalised and
customised products changing
the landscape on the
industry
S
The emerging
cutting-edge 21century
technology
migrates retailers
services online
The increasing pace of
technology is a double-
edged sword that both
enables and requires
agility and
adaptability
T
Each state across the
country has consumer
protection laws in place with
the goal of preventing
businesses from using
misleading marketing
campaigns as a means to
drive sales numbers (Chron
2013)
Labour Concerns Rise amid
Increased Competition amp
Costs
P L
Threat on
Substitutes
Is high because
of the increasing
number of
discount retailers
and supercentres
like Wal-market
Supplier
Power
Is low
because of
the large
number of
suppliers
available
Figure 3 ndash Nordstrom and its web of relational actors
Source Adapted from De Wit and Meyer 2010
Nordstrom Corporate Strategy
Page | 8
4 The Paradoxical Choices
41 THE PARADOX of Compliance versus Choice to the industry development
The low level of differentiation between the individual retailers and the fragmented nature
of the industry results in a very competitive environment which makes it difficult for the
industry to outperform the overall market (PEC Research 2012) Moreover despite the
improving trends witnessed in retail sales along with declining unemployment rate confirms
that the US economy continues to be on track for recovery there is still a general
uncertainty on the economic front with the GDP growth remaining sluggish Zacks Equity
Research (2013) suggested that this uncertainty in the retail industry development and the
instability noted early into the interplay economy forces underlie risky adaptation to this
industry orthodoxy which can even damage the industry itself on the long-term (De Wit and
Meyer 2010) The industry structure was characterised by many retailers being unprepared
for the sharp decline in consumer confidence that occurred in late 2007 opting for a bunker
mentality rather than a strategic one where the most common view was that many retailers
were cutting back in the wrong places of fewer products less service or even less inventory
(Gensler 2008) Another view was that other retailers chose to rest on their laurels without
connecting to the new customer behaviour which was the reason for them to be selected
out of the industry
De Wit and Meyer (2010) suggest that while compliance to the industry rules can be very
beneficial contradicting them can also be strategically valuable In the light of this
compliance to these poor underlying industry dynamics could jeopardise Nordstrom
corporate brand credibility Whereas the industry recipe was held towards trade-offs
between product quality cost and customer service Nordstrom successfully lived up to its
brand promise and has developed an integrative strategic thinking through its innovative
approach of the Omni-channel initiative in 2008 to create new ways of selling (see Appendix
PA-CVC-OC) as well as leverage a masstige2 pricing strategy to adapt to the accelerated pace
of consumers price sensitivity as they are trading down to lower price points or even
cheaper private label brands and also as a mean to reach out to a wide and diverse target
audience
2 Masstige products are defined as premium but attainable and there are two key tenets (1) They are considered luxury or premium products and (2) They have price points that fill the gap between mid-market and super premium (Wikipedia 2013)
Nordstrom Corporate Strategy
Page | 9
This paper illustrates the integrative ways of strategic thinking rather than a solution to
tackle infinity of hostile environmental forces where Nordstrom used the industry dynamics
as a powerful explanatory lens to understand the mainstay of the retail business the
consumers and even go beyond meeting their needs to a new concept of anticipating these
needs Hence it depicts on how to go beyond the crucial stage of transitioning from original
retail model into non-traditional to relate to the new future of retailing
Capitalising on blending both effectiveness and efficiency attributes to yielding a new
concept called ldquothe new efficiencyrdquo that is tied to the practice of attainable prices of high
end luxury products with emphasis on providing top of the line of customer services This
contrasted with the approach of the majority of retailers who are trimming their costs by
competing solely on price which resulted later in their failure to relate to consumersrsquo needs
and retain them This made Nordstrom stand out against its rivals Nordstrom developed an
innovative strategy which demonstrates characteristics of both dichotomous poles to reap
augmented value in the form of ROI (PWC 2012)
Despite applying the masstige pricing strategy service is not scarified even at the lower
priced Nordstrom Rack stores This entails from lowering its cost structure such as taking
the initiative of integrating its inventory by virtually pooling its online and in-store
inventories (see Appendix PA-CVC-IN) As a result of this Nordstrom keeps items in the
inventory for an average of 62 days hence its turning inventory is about twice as fast as its
competitors (Schermerhorn et al 2011) Also Nordstromrsquos dynamic strategy of being highly
responsive to address customersrsquo value-oriented buying behaviour results in the growing
number of its customers and the long term supplydemand balance which accelerate
revenues and lead to scale economies and lower costs with greater agility The perceived
value from adapting to the industry development embodies an opportunity rather than a
threat of not achieving profits because of lowering its prices
Most notably all Nordstrom transformations strategies have built up designated competitive
advantages based on both leadership and dynamics perspectives Right from the start when
Nordstrom was co-founded in 1901 as a shoe store it incorporated exceptional customer
services selection quality and value forming its brand equity Drawing from this mission it
expanded its stores in 1923 By the 1960rsquos the market reached maturity and in an attempt
to diversify itself it opened for the first time in history a department store which ventured
into the clothing market under the name of Nordstrom Best it offered a diverse products
no other competitors offered In order to retain its competitive advantage in 1973 it
Nordstrom Corporate Strategy
Page | 10
opened up its first Nordstrom Rack - the off priced stores - to reinvent new ways to induce
consumers to buy during the economic stagnation (Nordstrom Company History 2013) By
1975 it adapted to the industry dynamics at the time as getting out of the recession and
penetrated into the new American markets
As of Nordstrom recently despite the deterioration of economic conditions Nordstrom
weathered the recession better than most retailers with total sales surpassed $10 billion in
2012 where over $1 billion is coming from its direct sales a first in the companyrsquos history as
e-commerce achieved an impressive 37 per cent growth (Nordstrom Annual Report 2013)
Thereof Nordstrom enjoys a healthy financial position that entailed from diversifying its
portfolio marked with a high level of quality merchandise with strong brand presence in full-
line stores for the newest forward fashion with attainable prices which were at premium
prices before the recession -and in order to retain its customer base it employs tactical
marketing strategies of promotional pricing to offer the implied affordability without
damaging its brand on the long term In addition they also found a good presence in lower
priced value market for new brands with its Rack stores
While its supply chain expedites merchandise in the areas of handling highly innovative
fashion products partnerships are also enhancing the in-store and online experiences In
2012 Nordstrom achieved another pioneering advantage by becoming the only major US
retailer to sell a broad assortment from the renowned British fashion brands Topshop and
Topman to entice younger shoppers and to translate its engagement with young customers
through the digital media into compelling merchandise offering that they favour to push on
the sales (Nordstrom Company History 2013)
As a matter of fact Nordstrom is making all of the right moves to accelerate sales growth in
line with commitment to stay true to its reputation of having excellent customer service
(Inside FFM 2012) Hence its continuum customer centricity ranged from its liberal returns
policy to return items without a receipt to efforts by employees to make a connection with
existing customers and acquire potential ones (Nordstrom Annual Report 2012) Besides its
Fashion Rewards Program features as a shopping-based loyalty as Nordstrom operates in
credit segment through its owned federal savings bank to provide private label cards
(Reuters 2013) On one hand this has been highly regarded among customers and on the
other hand it resulted in robust sales as Nordstrom builds strong value-laden customer
relationships with its customers (Kotler et al 2012)
Nordstrom Corporate Strategy
Page | 11
Nordstromrsquos core competences are derived from its customer centric approach which has
created multiple growth opportunities that is coupled with savvy competitive strategy With
regard to this approach in 2009 Nordstrom aggregated its inventory across its network and
made it visible by displaying stock from both the Web warehouse and its stores all at once
(see Appendix PA-CVC-IN) This might not seem revolutionary in other industries but a
melding of Web site and store was surprisingly rare in the retailing world (The New York
Times 2010) Thus such fluidity was hard to find among Nordstromrsquos competitors therefore
many retailers at the time were experiencing YOY sales decreases at other stores Although
Nordstrom did have to hire more shipping employees to wrap and ship items from each
store the increased sales more than offset the operational costs (Banker 2011)
Selected by US News as one of Americas Most Connected Companies for its use of
technology to expand shopping options Nordstrom has been aggressive about snapping up
promising Internet ventures to diversify its business and experiment with new retail
platforms Its social media strategy extends well beyond the likes of Facebook Twitter and
YouTube to an array of buzz-generating fashion and photo-sharing sites Recognizing that its
customers always want to stay connected the company introduced complimentary Wi-Fi in
its high-end department stores in 2010 (see Appendix PA-CVC-TE)
Late 2011 it distributed in its flagship stores 6000 modified iTouch devices to sales staff that
can ring up purchases on the spot a process called mobile checkout and track inventory
(see Appendix PA-CVC-POS) Sales personnel also use iPads to assist customers with the
selection of everything from wedding wardrobes to cosmetics to business suits (Hatch 2012)
Despite the high cost of operating these mobile POS devices the integrative thinking of
reducing the potential amount of time customers have to think about their purchases before
they reach the register has translated into higher profits in both Nordstromrsquos 2012 March
Sales Report (see Appendix PA-CVC-SR) According to the company 2012 sales was $173
billion increased 153 per cent compared with total retail sales of $150 billion for the same
period in fiscal 2011 (Forbes 2012)
While customers are trading down Nordstrom has responded by expanding its off-price Rack
stores Moreover as Nordstrom has not been a typical retailer it evolved a new trend to
exploit the strength of the Rack division and benefit from its strong fundamentals in the off-
price space by opening one of its Rack stores a crosswalk away from its flagship in downtown
Seattle (Martinez 2012) It argued that around 60 per cent of the Rack divisions customers
also shop at Nordstroms flagship stores as they want the newest latest greatest thing so for
Nordstrom Corporate Strategy
Page | 12
their convenience they go across to the full-line store and get it the day it comes out
Nordstrom is challenging the conventional wisdom that a retailers full-price and off-price
stores cannibalize each other Much more complete this approach seems to contribute to
the industry risk averseness (De Wit amp Meyer 2010) However it addresses the two poles in
an efficient and effective way On one hand it allows customers from the Rack to shop at the
full line stores where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack they would benefit from just crossing the road and they could shop
there Most importantly is to divert customers from other stores with productsrsquo values are
competed away to the Rack for their less competitive products either less quality or high
prices in this way to increase customer base Nevertheless Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwCKantar Retail 2012)
Figure 4 ndash
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
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BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
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Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
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consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
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Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
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companieaspx
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Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
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introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
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Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
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Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
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media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
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King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
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Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
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Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
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Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
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PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
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Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
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Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
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Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
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laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
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0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
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ix P
A-C
VC
-OC
htt
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Ses
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
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Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
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Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
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246
281
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174
454
18
2
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New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
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Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
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Investor FAQ
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Stock Information
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Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 7
E
Threat on New
Entrants
Potential new
entrants face low
barriers ndash
generated by
direct-to-
consumer online
retailers
Buyer Power
Is high to
moderate due to
the empowered
customers with
internet
advances
01234
IncumbentRivals
BuyerPower
SupplierPower
Threat ofSubstitutes
Threat ofNew
Entrants
Competitive Landscape Lens
The impact of peak
cotton prices is associated with
long lag between the purchase of
raw materials and the appearance of
finished apparel goods on store
shelves (Euromonitor 2012)
Price-sensitive consumers trade down
or wait for promotions as a result of the
economic downturn (Euromonitor
2012)
Increasing fuel and transportation
costs as well as labour costs are
continue to rise as the standards of
living in the developing countries
that house many apparel
manufacturers drive inflation (Euromonito 2012)
Rivals-Fierce
competition
The high fragmentation
of the industry leads to
increased competitor
rivalry
Contemporary brands
such as teen fashion are
seeing explosive growth
(Nbcnewyork 2013)
The surge of post digital age
tends towards personalised and
customised products changing
the landscape on the
industry
S
The emerging
cutting-edge 21century
technology
migrates retailers
services online
The increasing pace of
technology is a double-
edged sword that both
enables and requires
agility and
adaptability
T
Each state across the
country has consumer
protection laws in place with
the goal of preventing
businesses from using
misleading marketing
campaigns as a means to
drive sales numbers (Chron
2013)
Labour Concerns Rise amid
Increased Competition amp
Costs
P L
Threat on
Substitutes
Is high because
of the increasing
number of
discount retailers
and supercentres
like Wal-market
Supplier
Power
Is low
because of
the large
number of
suppliers
available
Figure 3 ndash Nordstrom and its web of relational actors
Source Adapted from De Wit and Meyer 2010
Nordstrom Corporate Strategy
Page | 8
4 The Paradoxical Choices
41 THE PARADOX of Compliance versus Choice to the industry development
The low level of differentiation between the individual retailers and the fragmented nature
of the industry results in a very competitive environment which makes it difficult for the
industry to outperform the overall market (PEC Research 2012) Moreover despite the
improving trends witnessed in retail sales along with declining unemployment rate confirms
that the US economy continues to be on track for recovery there is still a general
uncertainty on the economic front with the GDP growth remaining sluggish Zacks Equity
Research (2013) suggested that this uncertainty in the retail industry development and the
instability noted early into the interplay economy forces underlie risky adaptation to this
industry orthodoxy which can even damage the industry itself on the long-term (De Wit and
Meyer 2010) The industry structure was characterised by many retailers being unprepared
for the sharp decline in consumer confidence that occurred in late 2007 opting for a bunker
mentality rather than a strategic one where the most common view was that many retailers
were cutting back in the wrong places of fewer products less service or even less inventory
(Gensler 2008) Another view was that other retailers chose to rest on their laurels without
connecting to the new customer behaviour which was the reason for them to be selected
out of the industry
De Wit and Meyer (2010) suggest that while compliance to the industry rules can be very
beneficial contradicting them can also be strategically valuable In the light of this
compliance to these poor underlying industry dynamics could jeopardise Nordstrom
corporate brand credibility Whereas the industry recipe was held towards trade-offs
between product quality cost and customer service Nordstrom successfully lived up to its
brand promise and has developed an integrative strategic thinking through its innovative
approach of the Omni-channel initiative in 2008 to create new ways of selling (see Appendix
PA-CVC-OC) as well as leverage a masstige2 pricing strategy to adapt to the accelerated pace
of consumers price sensitivity as they are trading down to lower price points or even
cheaper private label brands and also as a mean to reach out to a wide and diverse target
audience
2 Masstige products are defined as premium but attainable and there are two key tenets (1) They are considered luxury or premium products and (2) They have price points that fill the gap between mid-market and super premium (Wikipedia 2013)
Nordstrom Corporate Strategy
Page | 9
This paper illustrates the integrative ways of strategic thinking rather than a solution to
tackle infinity of hostile environmental forces where Nordstrom used the industry dynamics
as a powerful explanatory lens to understand the mainstay of the retail business the
consumers and even go beyond meeting their needs to a new concept of anticipating these
needs Hence it depicts on how to go beyond the crucial stage of transitioning from original
retail model into non-traditional to relate to the new future of retailing
Capitalising on blending both effectiveness and efficiency attributes to yielding a new
concept called ldquothe new efficiencyrdquo that is tied to the practice of attainable prices of high
end luxury products with emphasis on providing top of the line of customer services This
contrasted with the approach of the majority of retailers who are trimming their costs by
competing solely on price which resulted later in their failure to relate to consumersrsquo needs
and retain them This made Nordstrom stand out against its rivals Nordstrom developed an
innovative strategy which demonstrates characteristics of both dichotomous poles to reap
augmented value in the form of ROI (PWC 2012)
Despite applying the masstige pricing strategy service is not scarified even at the lower
priced Nordstrom Rack stores This entails from lowering its cost structure such as taking
the initiative of integrating its inventory by virtually pooling its online and in-store
inventories (see Appendix PA-CVC-IN) As a result of this Nordstrom keeps items in the
inventory for an average of 62 days hence its turning inventory is about twice as fast as its
competitors (Schermerhorn et al 2011) Also Nordstromrsquos dynamic strategy of being highly
responsive to address customersrsquo value-oriented buying behaviour results in the growing
number of its customers and the long term supplydemand balance which accelerate
revenues and lead to scale economies and lower costs with greater agility The perceived
value from adapting to the industry development embodies an opportunity rather than a
threat of not achieving profits because of lowering its prices
Most notably all Nordstrom transformations strategies have built up designated competitive
advantages based on both leadership and dynamics perspectives Right from the start when
Nordstrom was co-founded in 1901 as a shoe store it incorporated exceptional customer
services selection quality and value forming its brand equity Drawing from this mission it
expanded its stores in 1923 By the 1960rsquos the market reached maturity and in an attempt
to diversify itself it opened for the first time in history a department store which ventured
into the clothing market under the name of Nordstrom Best it offered a diverse products
no other competitors offered In order to retain its competitive advantage in 1973 it
Nordstrom Corporate Strategy
Page | 10
opened up its first Nordstrom Rack - the off priced stores - to reinvent new ways to induce
consumers to buy during the economic stagnation (Nordstrom Company History 2013) By
1975 it adapted to the industry dynamics at the time as getting out of the recession and
penetrated into the new American markets
As of Nordstrom recently despite the deterioration of economic conditions Nordstrom
weathered the recession better than most retailers with total sales surpassed $10 billion in
2012 where over $1 billion is coming from its direct sales a first in the companyrsquos history as
e-commerce achieved an impressive 37 per cent growth (Nordstrom Annual Report 2013)
Thereof Nordstrom enjoys a healthy financial position that entailed from diversifying its
portfolio marked with a high level of quality merchandise with strong brand presence in full-
line stores for the newest forward fashion with attainable prices which were at premium
prices before the recession -and in order to retain its customer base it employs tactical
marketing strategies of promotional pricing to offer the implied affordability without
damaging its brand on the long term In addition they also found a good presence in lower
priced value market for new brands with its Rack stores
While its supply chain expedites merchandise in the areas of handling highly innovative
fashion products partnerships are also enhancing the in-store and online experiences In
2012 Nordstrom achieved another pioneering advantage by becoming the only major US
retailer to sell a broad assortment from the renowned British fashion brands Topshop and
Topman to entice younger shoppers and to translate its engagement with young customers
through the digital media into compelling merchandise offering that they favour to push on
the sales (Nordstrom Company History 2013)
As a matter of fact Nordstrom is making all of the right moves to accelerate sales growth in
line with commitment to stay true to its reputation of having excellent customer service
(Inside FFM 2012) Hence its continuum customer centricity ranged from its liberal returns
policy to return items without a receipt to efforts by employees to make a connection with
existing customers and acquire potential ones (Nordstrom Annual Report 2012) Besides its
Fashion Rewards Program features as a shopping-based loyalty as Nordstrom operates in
credit segment through its owned federal savings bank to provide private label cards
(Reuters 2013) On one hand this has been highly regarded among customers and on the
other hand it resulted in robust sales as Nordstrom builds strong value-laden customer
relationships with its customers (Kotler et al 2012)
Nordstrom Corporate Strategy
Page | 11
Nordstromrsquos core competences are derived from its customer centric approach which has
created multiple growth opportunities that is coupled with savvy competitive strategy With
regard to this approach in 2009 Nordstrom aggregated its inventory across its network and
made it visible by displaying stock from both the Web warehouse and its stores all at once
(see Appendix PA-CVC-IN) This might not seem revolutionary in other industries but a
melding of Web site and store was surprisingly rare in the retailing world (The New York
Times 2010) Thus such fluidity was hard to find among Nordstromrsquos competitors therefore
many retailers at the time were experiencing YOY sales decreases at other stores Although
Nordstrom did have to hire more shipping employees to wrap and ship items from each
store the increased sales more than offset the operational costs (Banker 2011)
Selected by US News as one of Americas Most Connected Companies for its use of
technology to expand shopping options Nordstrom has been aggressive about snapping up
promising Internet ventures to diversify its business and experiment with new retail
platforms Its social media strategy extends well beyond the likes of Facebook Twitter and
YouTube to an array of buzz-generating fashion and photo-sharing sites Recognizing that its
customers always want to stay connected the company introduced complimentary Wi-Fi in
its high-end department stores in 2010 (see Appendix PA-CVC-TE)
Late 2011 it distributed in its flagship stores 6000 modified iTouch devices to sales staff that
can ring up purchases on the spot a process called mobile checkout and track inventory
(see Appendix PA-CVC-POS) Sales personnel also use iPads to assist customers with the
selection of everything from wedding wardrobes to cosmetics to business suits (Hatch 2012)
Despite the high cost of operating these mobile POS devices the integrative thinking of
reducing the potential amount of time customers have to think about their purchases before
they reach the register has translated into higher profits in both Nordstromrsquos 2012 March
Sales Report (see Appendix PA-CVC-SR) According to the company 2012 sales was $173
billion increased 153 per cent compared with total retail sales of $150 billion for the same
period in fiscal 2011 (Forbes 2012)
While customers are trading down Nordstrom has responded by expanding its off-price Rack
stores Moreover as Nordstrom has not been a typical retailer it evolved a new trend to
exploit the strength of the Rack division and benefit from its strong fundamentals in the off-
price space by opening one of its Rack stores a crosswalk away from its flagship in downtown
Seattle (Martinez 2012) It argued that around 60 per cent of the Rack divisions customers
also shop at Nordstroms flagship stores as they want the newest latest greatest thing so for
Nordstrom Corporate Strategy
Page | 12
their convenience they go across to the full-line store and get it the day it comes out
Nordstrom is challenging the conventional wisdom that a retailers full-price and off-price
stores cannibalize each other Much more complete this approach seems to contribute to
the industry risk averseness (De Wit amp Meyer 2010) However it addresses the two poles in
an efficient and effective way On one hand it allows customers from the Rack to shop at the
full line stores where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack they would benefit from just crossing the road and they could shop
there Most importantly is to divert customers from other stores with productsrsquo values are
competed away to the Rack for their less competitive products either less quality or high
prices in this way to increase customer base Nevertheless Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwCKantar Retail 2012)
Figure 4 ndash
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
n
20
A1
pd
f
6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
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RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
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Ret a il Grou p
Chain Store Age
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
Go to Complete List raquo
Log in to see w hat your friends are sharingon nytimescom Privacy Policy | WhatrsquosThis
Whatrsquos Popular Now
Most Popular - Business
1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
1 0 Googlersquos Washington Insider
Trash Burning With a Clean-Energy TwistSPECIAL REPORT SMART BUSINESS raquo
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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BOOMING raquo
A Reluctant West PointPrince on Prom Night
OPINION raquo
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SCIENCE raquo
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OPINION raquo
Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
BUSINESS raquo
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ARTS raquo
John Oliv er Prepares toHost lsquoThe Daily Showrsquo
Home World US NY Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top
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REPRINTS
INSIDE NYTIMESCOM
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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Check out the 10 Best Jobs of
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Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
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War In Syria Highlights Why USWar In Syria Highlights Why USNeeds Fifth-Gen FightersNeeds Fifth-Gen Fighters +37973 views
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+31924 views
246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
check if an alternative size or color is available elsewhere without needing a
register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
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A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
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Nordstromcom | About Us
investor relations press room nordstrom cares
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News Release
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ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 8
4 The Paradoxical Choices
41 THE PARADOX of Compliance versus Choice to the industry development
The low level of differentiation between the individual retailers and the fragmented nature
of the industry results in a very competitive environment which makes it difficult for the
industry to outperform the overall market (PEC Research 2012) Moreover despite the
improving trends witnessed in retail sales along with declining unemployment rate confirms
that the US economy continues to be on track for recovery there is still a general
uncertainty on the economic front with the GDP growth remaining sluggish Zacks Equity
Research (2013) suggested that this uncertainty in the retail industry development and the
instability noted early into the interplay economy forces underlie risky adaptation to this
industry orthodoxy which can even damage the industry itself on the long-term (De Wit and
Meyer 2010) The industry structure was characterised by many retailers being unprepared
for the sharp decline in consumer confidence that occurred in late 2007 opting for a bunker
mentality rather than a strategic one where the most common view was that many retailers
were cutting back in the wrong places of fewer products less service or even less inventory
(Gensler 2008) Another view was that other retailers chose to rest on their laurels without
connecting to the new customer behaviour which was the reason for them to be selected
out of the industry
De Wit and Meyer (2010) suggest that while compliance to the industry rules can be very
beneficial contradicting them can also be strategically valuable In the light of this
compliance to these poor underlying industry dynamics could jeopardise Nordstrom
corporate brand credibility Whereas the industry recipe was held towards trade-offs
between product quality cost and customer service Nordstrom successfully lived up to its
brand promise and has developed an integrative strategic thinking through its innovative
approach of the Omni-channel initiative in 2008 to create new ways of selling (see Appendix
PA-CVC-OC) as well as leverage a masstige2 pricing strategy to adapt to the accelerated pace
of consumers price sensitivity as they are trading down to lower price points or even
cheaper private label brands and also as a mean to reach out to a wide and diverse target
audience
2 Masstige products are defined as premium but attainable and there are two key tenets (1) They are considered luxury or premium products and (2) They have price points that fill the gap between mid-market and super premium (Wikipedia 2013)
Nordstrom Corporate Strategy
Page | 9
This paper illustrates the integrative ways of strategic thinking rather than a solution to
tackle infinity of hostile environmental forces where Nordstrom used the industry dynamics
as a powerful explanatory lens to understand the mainstay of the retail business the
consumers and even go beyond meeting their needs to a new concept of anticipating these
needs Hence it depicts on how to go beyond the crucial stage of transitioning from original
retail model into non-traditional to relate to the new future of retailing
Capitalising on blending both effectiveness and efficiency attributes to yielding a new
concept called ldquothe new efficiencyrdquo that is tied to the practice of attainable prices of high
end luxury products with emphasis on providing top of the line of customer services This
contrasted with the approach of the majority of retailers who are trimming their costs by
competing solely on price which resulted later in their failure to relate to consumersrsquo needs
and retain them This made Nordstrom stand out against its rivals Nordstrom developed an
innovative strategy which demonstrates characteristics of both dichotomous poles to reap
augmented value in the form of ROI (PWC 2012)
Despite applying the masstige pricing strategy service is not scarified even at the lower
priced Nordstrom Rack stores This entails from lowering its cost structure such as taking
the initiative of integrating its inventory by virtually pooling its online and in-store
inventories (see Appendix PA-CVC-IN) As a result of this Nordstrom keeps items in the
inventory for an average of 62 days hence its turning inventory is about twice as fast as its
competitors (Schermerhorn et al 2011) Also Nordstromrsquos dynamic strategy of being highly
responsive to address customersrsquo value-oriented buying behaviour results in the growing
number of its customers and the long term supplydemand balance which accelerate
revenues and lead to scale economies and lower costs with greater agility The perceived
value from adapting to the industry development embodies an opportunity rather than a
threat of not achieving profits because of lowering its prices
Most notably all Nordstrom transformations strategies have built up designated competitive
advantages based on both leadership and dynamics perspectives Right from the start when
Nordstrom was co-founded in 1901 as a shoe store it incorporated exceptional customer
services selection quality and value forming its brand equity Drawing from this mission it
expanded its stores in 1923 By the 1960rsquos the market reached maturity and in an attempt
to diversify itself it opened for the first time in history a department store which ventured
into the clothing market under the name of Nordstrom Best it offered a diverse products
no other competitors offered In order to retain its competitive advantage in 1973 it
Nordstrom Corporate Strategy
Page | 10
opened up its first Nordstrom Rack - the off priced stores - to reinvent new ways to induce
consumers to buy during the economic stagnation (Nordstrom Company History 2013) By
1975 it adapted to the industry dynamics at the time as getting out of the recession and
penetrated into the new American markets
As of Nordstrom recently despite the deterioration of economic conditions Nordstrom
weathered the recession better than most retailers with total sales surpassed $10 billion in
2012 where over $1 billion is coming from its direct sales a first in the companyrsquos history as
e-commerce achieved an impressive 37 per cent growth (Nordstrom Annual Report 2013)
Thereof Nordstrom enjoys a healthy financial position that entailed from diversifying its
portfolio marked with a high level of quality merchandise with strong brand presence in full-
line stores for the newest forward fashion with attainable prices which were at premium
prices before the recession -and in order to retain its customer base it employs tactical
marketing strategies of promotional pricing to offer the implied affordability without
damaging its brand on the long term In addition they also found a good presence in lower
priced value market for new brands with its Rack stores
While its supply chain expedites merchandise in the areas of handling highly innovative
fashion products partnerships are also enhancing the in-store and online experiences In
2012 Nordstrom achieved another pioneering advantage by becoming the only major US
retailer to sell a broad assortment from the renowned British fashion brands Topshop and
Topman to entice younger shoppers and to translate its engagement with young customers
through the digital media into compelling merchandise offering that they favour to push on
the sales (Nordstrom Company History 2013)
As a matter of fact Nordstrom is making all of the right moves to accelerate sales growth in
line with commitment to stay true to its reputation of having excellent customer service
(Inside FFM 2012) Hence its continuum customer centricity ranged from its liberal returns
policy to return items without a receipt to efforts by employees to make a connection with
existing customers and acquire potential ones (Nordstrom Annual Report 2012) Besides its
Fashion Rewards Program features as a shopping-based loyalty as Nordstrom operates in
credit segment through its owned federal savings bank to provide private label cards
(Reuters 2013) On one hand this has been highly regarded among customers and on the
other hand it resulted in robust sales as Nordstrom builds strong value-laden customer
relationships with its customers (Kotler et al 2012)
Nordstrom Corporate Strategy
Page | 11
Nordstromrsquos core competences are derived from its customer centric approach which has
created multiple growth opportunities that is coupled with savvy competitive strategy With
regard to this approach in 2009 Nordstrom aggregated its inventory across its network and
made it visible by displaying stock from both the Web warehouse and its stores all at once
(see Appendix PA-CVC-IN) This might not seem revolutionary in other industries but a
melding of Web site and store was surprisingly rare in the retailing world (The New York
Times 2010) Thus such fluidity was hard to find among Nordstromrsquos competitors therefore
many retailers at the time were experiencing YOY sales decreases at other stores Although
Nordstrom did have to hire more shipping employees to wrap and ship items from each
store the increased sales more than offset the operational costs (Banker 2011)
Selected by US News as one of Americas Most Connected Companies for its use of
technology to expand shopping options Nordstrom has been aggressive about snapping up
promising Internet ventures to diversify its business and experiment with new retail
platforms Its social media strategy extends well beyond the likes of Facebook Twitter and
YouTube to an array of buzz-generating fashion and photo-sharing sites Recognizing that its
customers always want to stay connected the company introduced complimentary Wi-Fi in
its high-end department stores in 2010 (see Appendix PA-CVC-TE)
Late 2011 it distributed in its flagship stores 6000 modified iTouch devices to sales staff that
can ring up purchases on the spot a process called mobile checkout and track inventory
(see Appendix PA-CVC-POS) Sales personnel also use iPads to assist customers with the
selection of everything from wedding wardrobes to cosmetics to business suits (Hatch 2012)
Despite the high cost of operating these mobile POS devices the integrative thinking of
reducing the potential amount of time customers have to think about their purchases before
they reach the register has translated into higher profits in both Nordstromrsquos 2012 March
Sales Report (see Appendix PA-CVC-SR) According to the company 2012 sales was $173
billion increased 153 per cent compared with total retail sales of $150 billion for the same
period in fiscal 2011 (Forbes 2012)
While customers are trading down Nordstrom has responded by expanding its off-price Rack
stores Moreover as Nordstrom has not been a typical retailer it evolved a new trend to
exploit the strength of the Rack division and benefit from its strong fundamentals in the off-
price space by opening one of its Rack stores a crosswalk away from its flagship in downtown
Seattle (Martinez 2012) It argued that around 60 per cent of the Rack divisions customers
also shop at Nordstroms flagship stores as they want the newest latest greatest thing so for
Nordstrom Corporate Strategy
Page | 12
their convenience they go across to the full-line store and get it the day it comes out
Nordstrom is challenging the conventional wisdom that a retailers full-price and off-price
stores cannibalize each other Much more complete this approach seems to contribute to
the industry risk averseness (De Wit amp Meyer 2010) However it addresses the two poles in
an efficient and effective way On one hand it allows customers from the Rack to shop at the
full line stores where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack they would benefit from just crossing the road and they could shop
there Most importantly is to divert customers from other stores with productsrsquo values are
competed away to the Rack for their less competitive products either less quality or high
prices in this way to increase customer base Nevertheless Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwCKantar Retail 2012)
Figure 4 ndash
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
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20
A1
pd
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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SCIENCE raquo
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OPINION raquo
Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
BUSINESS raquo
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ARTS raquo
John Oliv er Prepares toHost lsquoThe Daily Showrsquo
Home World US NY Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top
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REPRINTS
INSIDE NYTIMESCOM
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
Game Of Thrones Season 3 Episode 9Game Of Thrones Season 3 Episode 9Review The Rains Of CastamereReview The Rains Of Castamere
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Democrats New Argument Its A GoodDemocrats New Argument Its A GoodThing That Obamacare DoublesThing That Obamacare DoublesIndividual Health InsuranceIndividual Health InsurancePremiumsPremiums +139678 views
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
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See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
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Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
MO RE F RO M K EL L Y C L A Y
IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
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Stock Information
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Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 9
This paper illustrates the integrative ways of strategic thinking rather than a solution to
tackle infinity of hostile environmental forces where Nordstrom used the industry dynamics
as a powerful explanatory lens to understand the mainstay of the retail business the
consumers and even go beyond meeting their needs to a new concept of anticipating these
needs Hence it depicts on how to go beyond the crucial stage of transitioning from original
retail model into non-traditional to relate to the new future of retailing
Capitalising on blending both effectiveness and efficiency attributes to yielding a new
concept called ldquothe new efficiencyrdquo that is tied to the practice of attainable prices of high
end luxury products with emphasis on providing top of the line of customer services This
contrasted with the approach of the majority of retailers who are trimming their costs by
competing solely on price which resulted later in their failure to relate to consumersrsquo needs
and retain them This made Nordstrom stand out against its rivals Nordstrom developed an
innovative strategy which demonstrates characteristics of both dichotomous poles to reap
augmented value in the form of ROI (PWC 2012)
Despite applying the masstige pricing strategy service is not scarified even at the lower
priced Nordstrom Rack stores This entails from lowering its cost structure such as taking
the initiative of integrating its inventory by virtually pooling its online and in-store
inventories (see Appendix PA-CVC-IN) As a result of this Nordstrom keeps items in the
inventory for an average of 62 days hence its turning inventory is about twice as fast as its
competitors (Schermerhorn et al 2011) Also Nordstromrsquos dynamic strategy of being highly
responsive to address customersrsquo value-oriented buying behaviour results in the growing
number of its customers and the long term supplydemand balance which accelerate
revenues and lead to scale economies and lower costs with greater agility The perceived
value from adapting to the industry development embodies an opportunity rather than a
threat of not achieving profits because of lowering its prices
Most notably all Nordstrom transformations strategies have built up designated competitive
advantages based on both leadership and dynamics perspectives Right from the start when
Nordstrom was co-founded in 1901 as a shoe store it incorporated exceptional customer
services selection quality and value forming its brand equity Drawing from this mission it
expanded its stores in 1923 By the 1960rsquos the market reached maturity and in an attempt
to diversify itself it opened for the first time in history a department store which ventured
into the clothing market under the name of Nordstrom Best it offered a diverse products
no other competitors offered In order to retain its competitive advantage in 1973 it
Nordstrom Corporate Strategy
Page | 10
opened up its first Nordstrom Rack - the off priced stores - to reinvent new ways to induce
consumers to buy during the economic stagnation (Nordstrom Company History 2013) By
1975 it adapted to the industry dynamics at the time as getting out of the recession and
penetrated into the new American markets
As of Nordstrom recently despite the deterioration of economic conditions Nordstrom
weathered the recession better than most retailers with total sales surpassed $10 billion in
2012 where over $1 billion is coming from its direct sales a first in the companyrsquos history as
e-commerce achieved an impressive 37 per cent growth (Nordstrom Annual Report 2013)
Thereof Nordstrom enjoys a healthy financial position that entailed from diversifying its
portfolio marked with a high level of quality merchandise with strong brand presence in full-
line stores for the newest forward fashion with attainable prices which were at premium
prices before the recession -and in order to retain its customer base it employs tactical
marketing strategies of promotional pricing to offer the implied affordability without
damaging its brand on the long term In addition they also found a good presence in lower
priced value market for new brands with its Rack stores
While its supply chain expedites merchandise in the areas of handling highly innovative
fashion products partnerships are also enhancing the in-store and online experiences In
2012 Nordstrom achieved another pioneering advantage by becoming the only major US
retailer to sell a broad assortment from the renowned British fashion brands Topshop and
Topman to entice younger shoppers and to translate its engagement with young customers
through the digital media into compelling merchandise offering that they favour to push on
the sales (Nordstrom Company History 2013)
As a matter of fact Nordstrom is making all of the right moves to accelerate sales growth in
line with commitment to stay true to its reputation of having excellent customer service
(Inside FFM 2012) Hence its continuum customer centricity ranged from its liberal returns
policy to return items without a receipt to efforts by employees to make a connection with
existing customers and acquire potential ones (Nordstrom Annual Report 2012) Besides its
Fashion Rewards Program features as a shopping-based loyalty as Nordstrom operates in
credit segment through its owned federal savings bank to provide private label cards
(Reuters 2013) On one hand this has been highly regarded among customers and on the
other hand it resulted in robust sales as Nordstrom builds strong value-laden customer
relationships with its customers (Kotler et al 2012)
Nordstrom Corporate Strategy
Page | 11
Nordstromrsquos core competences are derived from its customer centric approach which has
created multiple growth opportunities that is coupled with savvy competitive strategy With
regard to this approach in 2009 Nordstrom aggregated its inventory across its network and
made it visible by displaying stock from both the Web warehouse and its stores all at once
(see Appendix PA-CVC-IN) This might not seem revolutionary in other industries but a
melding of Web site and store was surprisingly rare in the retailing world (The New York
Times 2010) Thus such fluidity was hard to find among Nordstromrsquos competitors therefore
many retailers at the time were experiencing YOY sales decreases at other stores Although
Nordstrom did have to hire more shipping employees to wrap and ship items from each
store the increased sales more than offset the operational costs (Banker 2011)
Selected by US News as one of Americas Most Connected Companies for its use of
technology to expand shopping options Nordstrom has been aggressive about snapping up
promising Internet ventures to diversify its business and experiment with new retail
platforms Its social media strategy extends well beyond the likes of Facebook Twitter and
YouTube to an array of buzz-generating fashion and photo-sharing sites Recognizing that its
customers always want to stay connected the company introduced complimentary Wi-Fi in
its high-end department stores in 2010 (see Appendix PA-CVC-TE)
Late 2011 it distributed in its flagship stores 6000 modified iTouch devices to sales staff that
can ring up purchases on the spot a process called mobile checkout and track inventory
(see Appendix PA-CVC-POS) Sales personnel also use iPads to assist customers with the
selection of everything from wedding wardrobes to cosmetics to business suits (Hatch 2012)
Despite the high cost of operating these mobile POS devices the integrative thinking of
reducing the potential amount of time customers have to think about their purchases before
they reach the register has translated into higher profits in both Nordstromrsquos 2012 March
Sales Report (see Appendix PA-CVC-SR) According to the company 2012 sales was $173
billion increased 153 per cent compared with total retail sales of $150 billion for the same
period in fiscal 2011 (Forbes 2012)
While customers are trading down Nordstrom has responded by expanding its off-price Rack
stores Moreover as Nordstrom has not been a typical retailer it evolved a new trend to
exploit the strength of the Rack division and benefit from its strong fundamentals in the off-
price space by opening one of its Rack stores a crosswalk away from its flagship in downtown
Seattle (Martinez 2012) It argued that around 60 per cent of the Rack divisions customers
also shop at Nordstroms flagship stores as they want the newest latest greatest thing so for
Nordstrom Corporate Strategy
Page | 12
their convenience they go across to the full-line store and get it the day it comes out
Nordstrom is challenging the conventional wisdom that a retailers full-price and off-price
stores cannibalize each other Much more complete this approach seems to contribute to
the industry risk averseness (De Wit amp Meyer 2010) However it addresses the two poles in
an efficient and effective way On one hand it allows customers from the Rack to shop at the
full line stores where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack they would benefit from just crossing the road and they could shop
there Most importantly is to divert customers from other stores with productsrsquo values are
competed away to the Rack for their less competitive products either less quality or high
prices in this way to increase customer base Nevertheless Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwCKantar Retail 2012)
Figure 4 ndash
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
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0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
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20
A1
pd
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
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Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
News
Most Recent
Finance
Technology
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Tech Bytes
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Operations Real Estate
Community
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SPECS Show
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Digital Edition
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
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Whatrsquos Popular Now
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1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
1 0 Googlersquos Washington Insider
Trash Burning With a Clean-Energy TwistSPECIAL REPORT SMART BUSINESS raquo
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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BUSINESS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
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Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
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Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
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Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
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Earnings
Earnings Estimates
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E-mail Alerts
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Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 10
opened up its first Nordstrom Rack - the off priced stores - to reinvent new ways to induce
consumers to buy during the economic stagnation (Nordstrom Company History 2013) By
1975 it adapted to the industry dynamics at the time as getting out of the recession and
penetrated into the new American markets
As of Nordstrom recently despite the deterioration of economic conditions Nordstrom
weathered the recession better than most retailers with total sales surpassed $10 billion in
2012 where over $1 billion is coming from its direct sales a first in the companyrsquos history as
e-commerce achieved an impressive 37 per cent growth (Nordstrom Annual Report 2013)
Thereof Nordstrom enjoys a healthy financial position that entailed from diversifying its
portfolio marked with a high level of quality merchandise with strong brand presence in full-
line stores for the newest forward fashion with attainable prices which were at premium
prices before the recession -and in order to retain its customer base it employs tactical
marketing strategies of promotional pricing to offer the implied affordability without
damaging its brand on the long term In addition they also found a good presence in lower
priced value market for new brands with its Rack stores
While its supply chain expedites merchandise in the areas of handling highly innovative
fashion products partnerships are also enhancing the in-store and online experiences In
2012 Nordstrom achieved another pioneering advantage by becoming the only major US
retailer to sell a broad assortment from the renowned British fashion brands Topshop and
Topman to entice younger shoppers and to translate its engagement with young customers
through the digital media into compelling merchandise offering that they favour to push on
the sales (Nordstrom Company History 2013)
As a matter of fact Nordstrom is making all of the right moves to accelerate sales growth in
line with commitment to stay true to its reputation of having excellent customer service
(Inside FFM 2012) Hence its continuum customer centricity ranged from its liberal returns
policy to return items without a receipt to efforts by employees to make a connection with
existing customers and acquire potential ones (Nordstrom Annual Report 2012) Besides its
Fashion Rewards Program features as a shopping-based loyalty as Nordstrom operates in
credit segment through its owned federal savings bank to provide private label cards
(Reuters 2013) On one hand this has been highly regarded among customers and on the
other hand it resulted in robust sales as Nordstrom builds strong value-laden customer
relationships with its customers (Kotler et al 2012)
Nordstrom Corporate Strategy
Page | 11
Nordstromrsquos core competences are derived from its customer centric approach which has
created multiple growth opportunities that is coupled with savvy competitive strategy With
regard to this approach in 2009 Nordstrom aggregated its inventory across its network and
made it visible by displaying stock from both the Web warehouse and its stores all at once
(see Appendix PA-CVC-IN) This might not seem revolutionary in other industries but a
melding of Web site and store was surprisingly rare in the retailing world (The New York
Times 2010) Thus such fluidity was hard to find among Nordstromrsquos competitors therefore
many retailers at the time were experiencing YOY sales decreases at other stores Although
Nordstrom did have to hire more shipping employees to wrap and ship items from each
store the increased sales more than offset the operational costs (Banker 2011)
Selected by US News as one of Americas Most Connected Companies for its use of
technology to expand shopping options Nordstrom has been aggressive about snapping up
promising Internet ventures to diversify its business and experiment with new retail
platforms Its social media strategy extends well beyond the likes of Facebook Twitter and
YouTube to an array of buzz-generating fashion and photo-sharing sites Recognizing that its
customers always want to stay connected the company introduced complimentary Wi-Fi in
its high-end department stores in 2010 (see Appendix PA-CVC-TE)
Late 2011 it distributed in its flagship stores 6000 modified iTouch devices to sales staff that
can ring up purchases on the spot a process called mobile checkout and track inventory
(see Appendix PA-CVC-POS) Sales personnel also use iPads to assist customers with the
selection of everything from wedding wardrobes to cosmetics to business suits (Hatch 2012)
Despite the high cost of operating these mobile POS devices the integrative thinking of
reducing the potential amount of time customers have to think about their purchases before
they reach the register has translated into higher profits in both Nordstromrsquos 2012 March
Sales Report (see Appendix PA-CVC-SR) According to the company 2012 sales was $173
billion increased 153 per cent compared with total retail sales of $150 billion for the same
period in fiscal 2011 (Forbes 2012)
While customers are trading down Nordstrom has responded by expanding its off-price Rack
stores Moreover as Nordstrom has not been a typical retailer it evolved a new trend to
exploit the strength of the Rack division and benefit from its strong fundamentals in the off-
price space by opening one of its Rack stores a crosswalk away from its flagship in downtown
Seattle (Martinez 2012) It argued that around 60 per cent of the Rack divisions customers
also shop at Nordstroms flagship stores as they want the newest latest greatest thing so for
Nordstrom Corporate Strategy
Page | 12
their convenience they go across to the full-line store and get it the day it comes out
Nordstrom is challenging the conventional wisdom that a retailers full-price and off-price
stores cannibalize each other Much more complete this approach seems to contribute to
the industry risk averseness (De Wit amp Meyer 2010) However it addresses the two poles in
an efficient and effective way On one hand it allows customers from the Rack to shop at the
full line stores where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack they would benefit from just crossing the road and they could shop
there Most importantly is to divert customers from other stores with productsrsquo values are
competed away to the Rack for their less competitive products either less quality or high
prices in this way to increase customer base Nevertheless Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwCKantar Retail 2012)
Figure 4 ndash
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
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20
A1
pd
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
News
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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SCIENCE raquo
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OPINION raquo
Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
BUSINESS raquo
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ARTS raquo
John Oliv er Prepares toHost lsquoThe Daily Showrsquo
Home World US NY Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top
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REPRINTS
INSIDE NYTIMESCOM
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
RANKINGS LISTS
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
Game Of Thrones Season 3 Episode 9Game Of Thrones Season 3 Episode 9Review The Rains Of CastamereReview The Rains Of Castamere
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Democrats New Argument Its A GoodDemocrats New Argument Its A GoodThing That Obamacare DoublesThing That Obamacare DoublesIndividual Health InsuranceIndividual Health InsurancePremiumsPremiums +139678 views
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
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See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
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Amazon AWS Takes Down Netflix On ChristmasEve 102721 views
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Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
MO RE F RO M K EL L Y C L A Y
IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
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Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 11
Nordstromrsquos core competences are derived from its customer centric approach which has
created multiple growth opportunities that is coupled with savvy competitive strategy With
regard to this approach in 2009 Nordstrom aggregated its inventory across its network and
made it visible by displaying stock from both the Web warehouse and its stores all at once
(see Appendix PA-CVC-IN) This might not seem revolutionary in other industries but a
melding of Web site and store was surprisingly rare in the retailing world (The New York
Times 2010) Thus such fluidity was hard to find among Nordstromrsquos competitors therefore
many retailers at the time were experiencing YOY sales decreases at other stores Although
Nordstrom did have to hire more shipping employees to wrap and ship items from each
store the increased sales more than offset the operational costs (Banker 2011)
Selected by US News as one of Americas Most Connected Companies for its use of
technology to expand shopping options Nordstrom has been aggressive about snapping up
promising Internet ventures to diversify its business and experiment with new retail
platforms Its social media strategy extends well beyond the likes of Facebook Twitter and
YouTube to an array of buzz-generating fashion and photo-sharing sites Recognizing that its
customers always want to stay connected the company introduced complimentary Wi-Fi in
its high-end department stores in 2010 (see Appendix PA-CVC-TE)
Late 2011 it distributed in its flagship stores 6000 modified iTouch devices to sales staff that
can ring up purchases on the spot a process called mobile checkout and track inventory
(see Appendix PA-CVC-POS) Sales personnel also use iPads to assist customers with the
selection of everything from wedding wardrobes to cosmetics to business suits (Hatch 2012)
Despite the high cost of operating these mobile POS devices the integrative thinking of
reducing the potential amount of time customers have to think about their purchases before
they reach the register has translated into higher profits in both Nordstromrsquos 2012 March
Sales Report (see Appendix PA-CVC-SR) According to the company 2012 sales was $173
billion increased 153 per cent compared with total retail sales of $150 billion for the same
period in fiscal 2011 (Forbes 2012)
While customers are trading down Nordstrom has responded by expanding its off-price Rack
stores Moreover as Nordstrom has not been a typical retailer it evolved a new trend to
exploit the strength of the Rack division and benefit from its strong fundamentals in the off-
price space by opening one of its Rack stores a crosswalk away from its flagship in downtown
Seattle (Martinez 2012) It argued that around 60 per cent of the Rack divisions customers
also shop at Nordstroms flagship stores as they want the newest latest greatest thing so for
Nordstrom Corporate Strategy
Page | 12
their convenience they go across to the full-line store and get it the day it comes out
Nordstrom is challenging the conventional wisdom that a retailers full-price and off-price
stores cannibalize each other Much more complete this approach seems to contribute to
the industry risk averseness (De Wit amp Meyer 2010) However it addresses the two poles in
an efficient and effective way On one hand it allows customers from the Rack to shop at the
full line stores where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack they would benefit from just crossing the road and they could shop
there Most importantly is to divert customers from other stores with productsrsquo values are
competed away to the Rack for their less competitive products either less quality or high
prices in this way to increase customer base Nevertheless Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwCKantar Retail 2012)
Figure 4 ndash
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
n
20
A1
pd
f
6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
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ProDealer Industry Summit
SPECS
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RetailNet
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Diario IP Mark Distribucion Actualidad
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
Go to Complete List raquo
Log in to see w hat your friends are sharingon nytimescom Privacy Policy | WhatrsquosThis
Whatrsquos Popular Now
Most Popular - Business
1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
1 0 Googlersquos Washington Insider
Trash Burning With a Clean-Energy TwistSPECIAL REPORT SMART BUSINESS raquo
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Lessons Learned Czech Banks Thrive
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
Ads by Google whats this
You Could Be Owed pound2400If Youve Had A Credit Card
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BOOMING raquo
A Reluctant West PointPrince on Prom Night
OPINION raquo
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SCIENCE raquo
Apocaly pse and OtherLov e Stories
OPINION raquo
Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
BUSINESS raquo
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ARTS raquo
John Oliv er Prepares toHost lsquoThe Daily Showrsquo
Home World US NY Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top
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REPRINTS
INSIDE NYTIMESCOM
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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Check out the 10 Best Jobs of
2012
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Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
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Most Pow er fu l Wom en
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$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
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See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
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News Release
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ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 12
their convenience they go across to the full-line store and get it the day it comes out
Nordstrom is challenging the conventional wisdom that a retailers full-price and off-price
stores cannibalize each other Much more complete this approach seems to contribute to
the industry risk averseness (De Wit amp Meyer 2010) However it addresses the two poles in
an efficient and effective way On one hand it allows customers from the Rack to shop at the
full line stores where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack they would benefit from just crossing the road and they could shop
there Most importantly is to divert customers from other stores with productsrsquo values are
competed away to the Rack for their less competitive products either less quality or high
prices in this way to increase customer base Nevertheless Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwCKantar Retail 2012)
Figure 4 ndash
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
n
20
A1
pd
f
6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
News
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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SCIENCE raquo
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OPINION raquo
Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
BUSINESS raquo
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ARTS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
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Check out the 10 Best Jobs of
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10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
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18
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Most Most PopularPopular
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Most Pow er fu l Wom en
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Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
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Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
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News Releases
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Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 13
Besides while Rack customers tend to skew younger than Nordstroms flagship stores whose
customers are from Baby Boomer generation This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5 Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5) as that happens it
wants to attract a younger customer without alienating its core customer (Anderson 2012)
Furthermore the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit amp Meyer
2010) This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds 2013) However as it is Nordstrom way to incorporate the best
of both worlds the company expects to spend 25 of its planned five-year capital
expenditures towards e-Commerce and technology investments including initiatives to
improve e-Commerce delivery and fulfilment online and mobile experience and
personalisation
With its preliminary transition towards the omni-channel Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
Figure 5 ndash
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
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20
A1
pd
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
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E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
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$40000
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CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
Game Of Thrones Season 3 Episode 9Game Of Thrones Season 3 Episode 9Review The Rains Of CastamereReview The Rains Of Castamere
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
The Real Cost Of An iPhone 5 112962 views
Amazon AWS Takes Down Netflix On ChristmasEve 102721 views
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Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
MO RE F RO M K EL L Y C L A Y
IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
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Stock Information
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Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 14
the online brick and mortar m-commerce (fig 6) Hence this puts Nordstrom 48 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov 2013)
Moreover Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA) And with
more than 15000 Canadians already have a Nordstrom credit card either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the US (CBC News
2013) Nordstrom has an immense opportunity to expand its customer base Hence to sustain
growth Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC 2012)
Source Kym Mcnicholas
Figure 6 ndash Omni-channel Retailers
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
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20
A1
pd
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
Go to Complete List raquo
Log in to see w hat your friends are sharingon nytimescom Privacy Policy | WhatrsquosThis
Whatrsquos Popular Now
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1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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SCIENCE raquo
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BUSINESS raquo
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ARTS raquo
John Oliv er Prepares toHost lsquoThe Daily Showrsquo
Home World US NY Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top
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REPRINTS
INSIDE NYTIMESCOM
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
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IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
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News Release
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ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 15
42 THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstromrsquos approach to the compliance-choice dichotomy in achieving strategic competitive
advantages is exemplary with its approach to empowering the employees the dynamics
organisational perspectives and its organisational leadership perspectives reconciled using a
holistic strand (Hamza 2013) The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers as well as benchmark against its competitors Nordstrom approaches its
employees with a shared vision Furthermore Nordstrom designs its organisation in a way
that enables generative learning3rsquo which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit amp Meyer 2010) This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer 2010)
The Nordstrom family owns 25 of the business as the 21st century dawned Nordstrom was
in trouble Its sales had slowed down and its stock prices had declined While Blake
Nordstrom took over the CEO position he reemphasised Nordstroms personalised service
culture to bring back disenchanted customers He was quoted as saying We know by giving
good service we sell more Blake told BusinessWeek in 2001 Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business 2013) It has been perceived that the companyrsquos inverted pyramid
where management is on the bottom and salespeople and customers are on the top
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7) the total value chain loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza 2013)
3 It is about creating as well as adaptive learning which is about coping as described by Peter Senge
(Source De Wit et al 2010)
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
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20
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
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RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
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Retail Rap withJeff Green
On the Lev el
Mall MarketingSpotlight
Project Spotlight
Multimedia
SPECS Show
SPECS Show
Executiv e SPECS
ResourceCenter
Webinars
Digital Edition
White Papers
Special Reports
Multimedia
Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
Go to Complete List raquo
Log in to see w hat your friends are sharingon nytimescom Privacy Policy | WhatrsquosThis
Whatrsquos Popular Now
Most Popular - Business
1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
1 0 Googlersquos Washington Insider
Trash Burning With a Clean-Energy TwistSPECIAL REPORT SMART BUSINESS raquo
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
Ads by Google whats this
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BOOMING raquo
A Reluctant West PointPrince on Prom Night
OPINION raquo
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SCIENCE raquo
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OPINION raquo
Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
BUSINESS raquo
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ARTS raquo
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REPRINTS
INSIDE NYTIMESCOM
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
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Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
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Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
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A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
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News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 16
This holistic consortium is driven by tying up between its partners The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customerlsquos favourite retailer to buy from The customer hence receives a high
perceived value from Nordstromrsquos merchandise offering
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
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20
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
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Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
News
Most Recent
Finance
Technology
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Tech Bytes
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Operations Real Estate
Community
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SPECS Show
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Digital Edition
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
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Log in to see w hat your friends are sharingon nytimescom Privacy Policy | WhatrsquosThis
Whatrsquos Popular Now
Most Popular - Business
1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
1 0 Googlersquos Washington Insider
Trash Burning With a Clean-Energy TwistSPECIAL REPORT SMART BUSINESS raquo
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
Ads by Google whats this
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BUSINESS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
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Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
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VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
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Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
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News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 17
Almost all of its ldquoheroicsrdquo as Nordstrom calls them can be traced back to the above inverted
triangle organization of priorities with salespeople at the top and executives at the bottom
Through this business structure sales associates on the floor are empowered like
entrepreneurs given tools like well-stocked stores digital customer profiles and thank-you
notes to keep track of and service individual customers in the interest of long term
Customers
Sales and
Support
People
Suppliers
Distributors
Customer-Centricity Engagement BampC
Feedback Internal integrated culture
Want-Satisfying offering
Products
Commitment ROI
BampB
Customers
Sales and Support People
Department Manager
Vendors Distributors
Regional Managers
Board of
Directors
Cap
ture
Val
ue
in R
etu
rn
(Ach
iev
e C
orp
ora
te
Ob
ject
ives
)
Cap
ture g
reater Valu
e
Pro
po
sition
Figure 7 - Holistic Communication Strategy across Omni-channels
Source Adapted from Hamza 2013
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
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ww
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stat
efo
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pd
f
6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
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RELATED CONTENT
Survey Back-to-school sales may
soar 16
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engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
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View mobile site
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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BUSINESS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
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Check out the 10 Best Jobs of
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Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
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T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
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Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
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Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
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A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
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News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 18
relationships to optimize its CRM and retain its customer base High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew 2012)
Nordstromrsquos management empowers its employees to do whatever is needed to satisfy or
even exceed customer needs and expectations employees serve their customers as if they
are running their own personal business From Nordstrom standpoint it stated its output of
achieving its number one goal of providing outstanding customer service However despite
this kind of control in setting both the employees personal and professional goals high it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman 2010)
Nordstrom is decentralised hence it gives a lot of power to supervisor and store managers
while keeps pushing the power down to the sales floor It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector 2012) Despite the decentralisation people for their outstanding acts of
customer service are rewarded as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit amp Meyer 2010)
Nordstrom practices both formal and informal training To help employees learn the
Nordstrom philosophy the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom Hence Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management It deliberately stresses decentralised management structures
praises the achievement of individual make merits the key to promotion and awards
responsibility to bottom line levels however it established control over the chaos of
4 Hygiene factors include supervision working conditions security peer relationships salary and
company policies (Herzberg)
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
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Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
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sco
mc
ante
chd
ocs
Ses
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20
A1
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
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3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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SCIENCE raquo
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OPINION raquo
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BUSINESS raquo
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ARTS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
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Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
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281
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18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 19
decentralisation In other words it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit amp Meyer 2010)
5 Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages
On the one hand its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry This
is achieved by being adept at harnessing product service and process innovation to
anticipate and meet customer needs Drawing from this concept Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit amp Meyer 2010) As part of Nordstrom CSR it makes ethical business decisions that
benefit all stakeholders More is in Appendix SH
On the other hand Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores
Nowadays with its inherited implementation towards decentralisation and empowerment it
deliberately relies on them to be the new marketlsquos motion - the market of social media and
digital channels - to actively interpret the expectations of these channels This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a BampC conversely to the old model of B2C where applied through its
holistic spectrum (Hamza 2013)
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit amp Meyer 2010) The best trajectory that Nordstrom has
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
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sco
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ocs
Ses
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20
A1
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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SCIENCE raquo
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OPINION raquo
Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
BUSINESS raquo
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ARTS raquo
John Oliv er Prepares toHost lsquoThe Daily Showrsquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
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Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
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246
281
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18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
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Most Pow er fu l Wom en
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$1 9 0 Million Esta te
California To Wal-Mart Enough No More
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Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 20
sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format This enables
Nordstrom to capture the best of the two polesrsquo opportunities and values the pole of
compliance and the other pole of choice And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others hence this unique core competence is hard to imitate
What distinguishes Nordstrom is very simple it is its recognition of what people need they
are the customers who represent the most empowered driver through the digital and social
media channels amid other drivers that determines the industry development Moreover
Nordstromrsquos recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020 Nordstrom will
position itself at the fine linemarket which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other This attempt redefined
by reconciling dichotomies is Nordstromrsquos distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
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sco
mc
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
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Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
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Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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BUSINESS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
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Check out the 10 Best Jobs of
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Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
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That May Cost You
INVESTING raquo
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RETIREMENT raquo
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CAREERS raquo
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Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
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T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
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Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
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Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
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Stock Information
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Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 21
6 Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P L FACTORS POLITICAL LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
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ix P
A-C
VC
-OC
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p
ww
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
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Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
News
Most Recent
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Technology
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Community
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SPECS Show
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ResourceCenter
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Digital Edition
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Multimedia
Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
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Whatrsquos Popular Now
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1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
1 0 Googlersquos Washington Insider
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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BUSINESS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
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1 2 gt
Check out the 10 Best Jobs of
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10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
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Democrats New Argument Its A GoodDemocrats New Argument Its A GoodThing That Obamacare DoublesThing That Obamacare DoublesIndividual Health InsuranceIndividual Health InsurancePremiumsPremiums +139678 views
War In Syria Highlights Why USWar In Syria Highlights Why USNeeds Fifth-Gen FightersNeeds Fifth-Gen Fighters +37973 views
Dept of Homeland Security Forced toDept of Homeland Security Forced toRelease List of Keywords Used toRelease List of Keywords Used toMonitor Social Networking SitesMonitor Social Networking Sites
+31924 views
246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
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Our Real-Time Billionaires scoreboard tracks
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Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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Fast high-quality printed brochures Callfree to discuss your brochure
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
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Printer-friendly
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News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 22
7 Reference
Anderson G (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29 2013]
httpwwwretailwirecomdiscussion16202nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29
2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett C (2013) Which Retailer Had the Best December [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130116which-retailer-had-the-best-decemberaspx
Bickle M (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02 2013]
httpwwwforbescomsitesprospernow20130528nonanchor-and-anchor-stores-equally-popular-among-
consumers
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry BDO USA Report Finds
[Accessed on June 02 2013] httpwwwbusinesswirecomnewshome20130520005152enRegulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger D (2013) What Makes Nordstrom One of Americas Best Companies [Accessed on June 02 2013]
httpwwwfoolcominvestinggeneral20130227what-makes-nordstrom-one-of-americas-best-
companieaspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02 2013]
httpwwwcbccanewsbusinessstory20130408business-nordstrom-yorkdalehtml
Chulis K (2012) Apply price sensitivity to improve retail performance [Accessed on June 02 2013]
httpwwwibmcomdeveloperworkslibraryba-price-sensitivity
Clay K (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20 2013]
httpwwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices
Clifford S (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25 2013]
httpwwwnytimescom20100824business24shophtml_r=0
De Wit B Meyer R (2010) Strategy Process Content Context an International Perspective 4 Ed
Djambazov A (2013) Nordstromrsquos e-commerce bet pays off big [Accessed on May 27 2013]
httpwwwgeekwirecom2013nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05 2013]
httpwwwfamilybusinessmagazinecomindexphpblogfamily_stewardship_at_nordstrom
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
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sco
mc
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
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engage w ith customers
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begin
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social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
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Community
Retail Rap withJeff Green
On the Lev el
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SPECS Show
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ResourceCenter
Webinars
Digital Edition
White Papers
Special Reports
Multimedia
Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
Go to Complete List raquo
Log in to see w hat your friends are sharingon nytimescom Privacy Policy | WhatrsquosThis
Whatrsquos Popular Now
Most Popular - Business
1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
1 0 Googlersquos Washington Insider
Trash Burning With a Clean-Energy TwistSPECIAL REPORT SMART BUSINESS raquo
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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BOOMING raquo
A Reluctant West PointPrince on Prom Night
OPINION raquo
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SCIENCE raquo
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OPINION raquo
Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
BUSINESS raquo
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ARTS raquo
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Home World US NY Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top
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REPRINTS
INSIDE NYTIMESCOM
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
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Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
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Dept of Homeland Security Forced toDept of Homeland Security Forced toRelease List of Keywords Used toRelease List of Keywords Used toMonitor Social Networking SitesMonitor Social Networking Sites
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
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A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
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News Release
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ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 23
Goman C (2010) Nordstroms one and only rule [Accessed on June 04 2013]
httpviewswashingtonpostcomleadershippanelists201004nordstroms-one-and-only-rulehtml
Grailresearch (2009) The Global Fashion Industry ndash Growth in Emerging Markets [Accessed on May 20 2013]
httpwwwgrailresearchcompdfContenPodsPdfGlobal_Fashion_Industry_Growth_in_Emerging_Marketspdf
Hamza A (2013) Nordstrom Global Marketing Plan
Hatch D (2012) Nordstrom in Fashion with Social Media Mobile Tech [Accessed on May 25 2013]
httpmoneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital Mobile Check-Out Geolocation amp Apps [Accessed on May 15
2013]httpinsidefmmcom201106nordstrom-mobile-marketing-strategy
King J Culver B (2010) Nordstrom A Marketing Analysis [Accessed on May 15 2013]
httpwwwdocstoccomdocs24447494Situation-Analysis-(SWOT-Analysis)---DOC
Kotler P Keller K Brady M Goodman M (2012) Marketing Management Pearson 2 Ed
Lew K (2012) At Your Customer Service Lessons from The Nordstrom Way [Accessed on May 29 2013]
httpwwwpublishingtrendscom201204reading-robert-spector-and-patrick-mccarthys-the-nordstrom-way
Lister J (2013) Government Regulations That Affect Marketing in Retail [Accessed on June 02 2013]
httpsmallbusinesschroncomgovernment-regulations-affect-marketing-retail-35217html
Martinez A (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20 2013]
httpseattletimescomhtmlbusinesstechnology2017727337_nordstromrack12html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20 2013]
httpwwwocregistercomarticlesnordstrom-371655-customer-helphtml
PEC Research (2012) US Branded Retail Apparel Industry [Accessed on June 02 2013]
httpanalystreportssomyaleedureportsBrandedApparel2012pdf
PeLLegrin B (2008) Recession-Proof Retailing [Accessed on June 02 2013]
httpwwwgenslercomuploadsdocumentsRecession-Proof_Retailing_11_20_2008pdf
Pinson L (2012) Citys FashionNYC2020 Report Outlines State of Apparel Industry Plans for Growth [Accessed on
June 02 2013] httpwwwnbcnewyorkcomblogsthreadnyTHREAD-Citys-Fashion-NYC2020-Report-Outlines-
State-of-Apparel-Industry--Plans-for-Growth--146983325html
Reference for Business (2013) Blake W Nordstrom 1961 [Accessed on June 02 2013]
httpwwwreferenceforbusinesscombiographyM-RNordstrom-Blake-W-1961htmlb
Research Articles Base (2011) Employee Motivation the of the Nordstrom Legend [Accessed on June 03 2013]
httpresearcharticlebaseblogspotcouk201111sample-essay-on-employee-motivation-ofhtml
Reuters (2013) Nordstrom Inc (JWN) Profile [Accessed on May 13 2013]
httpwwwreuterscomfinancestockscompanyProfilesymbol=JWN
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
n
20
A1
pd
f
6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
News
Most Recent
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Technology
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
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Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
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Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
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See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
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News Release
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ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy
Page | 24
Schermerhorn J Osborn R Uhl-Bien M Hunt J (2011) Organizational Behavior [Accessed on June 02 2013]
httpbooksgooglecoukbooksid=8eRtuZeIguICamppg=PR8ampdq=Organizational+Behavior++By+John+R+Scherme
rhorn+Richard+Namphl=enampsa=Xampei=sh-
xUfHoLYzAPJWEgfAFampved=0CC4Q6AEwAAv=onepageampq=nordstrom20inventoryampf=false
Spector R McCarthy P (2012)The Nordstrom Way to Customer Service Excellence 2 Ed
Speer J (2012) Nordstroms Big Secret Revealed [Accessed on May 25 2013] httpappareledglcomcase-
studiesNordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02 2013]
httpwwwrealestateforumscomcantechdocsSession20A1pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20 2013] httpwwwwikinvestcomstockNordstrom_(JWN)
Wyatt L (2013) State of the Industry Retail Fashion [Accessed on June 02 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02 2013]
httpwwwzackscomcommentary26346Retail-Industry-Stock-Outlook-March-2013
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
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20
A1
pd
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
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Finance
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
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$40000
PERSONAL FINANCE raquo
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That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
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CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
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+31924 views
246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
The Real Cost Of An iPhone 5 112962 views
Amazon AWS Takes Down Netflix On ChristmasEve 102721 views
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Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
MO RE F RO M K EL L Y C L A Y
IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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246 281 174 454 2
4 comments 2 called-out Comment Now Follow Comments
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
6613 Omnichannel-More than Retail Buzzword raquo SW Retail Advisors Stacey Widlitz
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 15
Search Search
About Stacey
Blog
Television Media
Print Media
Contact
laquo GPS UK As Holiday Dust Settles 75 off is Name of the Game
ICR Retail Takeaways Managements Do Matter raquo
Jan
08
Omnichannel-More than Retail Buzzword
Blog
by StaceyRetail
This article appeared on thestreetcom Dec 31
Omnichannel has to be the retail buzzword of 2012 Funny for as often retailers refer to the word not many
investors seem to really know what it means
If you google ldquoomnichannelrdquo a simple Wikipedia explanation ldquoA seamless approach to the consumer
experience through all available channels ie mobile Internet computers bricks and mortar tv and catalog
Sounds simple right Quite the opposite Integrating in store and online takes years vision and plenty of lootDonrsquot forget we are talking about the seamlessly merging inventory systems returns shipping pricing and
customer service
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon
I recently purchased a full price item at the NY Flagship store To be specific the day before Thanksgiving
There were plenty of sales but I am a Saks dream and fell for a full price item The sales associate assured me
this item would NOT go on sale any time soon Fast- forward and I see the item 60 off online several
weeks later Annoyed I pull up Saks online chat and explain my issue The response Unfortunately the
stores may not honor a sales price adjustment Online and stores are two separate entities What Wait a
minute What happened to omnichannel You mentioned it no less than 10 x on your Q3 conference call
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers Saks has started the omnichannel process but it will take place in a
phased approach through 2016 Problem is customers like myself may get frustrated along the way and seek
alternatives
Note Saks as of the end of last year is no longer breaking out dot com sales
Appendix PA-CVC-OC
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
Leave a Reply
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title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
n
20
A1
pd
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6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
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Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
News
Most Recent
Finance
Technology
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Real Estate
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Tech Bytes
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Community
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SPECS Show
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Digital Edition
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Multimedia
Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
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1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
1 0 Googlersquos Washington Insider
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
Ads by Google whats this
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BUSINESS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
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Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
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281
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2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
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Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
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Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
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A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
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Stock Information
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Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
6613
staceywidlitzcomblog20130108omnichannel-more-than-retail-buzzword 25
Tweet
0
That brings me to Nordstrom (think happy medium between Macyrsquos and NeimanSaks) Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories The
company is focused on making omnichannel the real thing and will spend 30 of cap ex ($140M) on
ecommerce this year Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack
And just to be sure I tested out the same scenario with Nordstromcom The response There occasionally is
a price difference though we do our best to make sure prices are the same in store and online Though it does
happen we are happy to honor each others prices Now that response is customer friendly
Note JWN does break out online sales which increased 38 last quarter
Social Share Button
Tags jwn luxury M macys nordstrom omnichannel online online sales saks sks
Leave a Reply
Your email address will not be published
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title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq
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Search Stacey Widlitz
0
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Appendix PA-CVC-OC
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
n
20
A1
pd
f
6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
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DSN Collaborative Care
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ProDealer Industry Summit
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Executive SPECS
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Diamond Chain Store Age
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Diario IP Mark Distribucion Actualidad
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
Go to Complete List raquo
Log in to see w hat your friends are sharingon nytimescom Privacy Policy | WhatrsquosThis
Whatrsquos Popular Now
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1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Trash Burning With a Clean-Energy TwistSPECIAL REPORT SMART BUSINESS raquo
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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Home World US NY Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top
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REPRINTS
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
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See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
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IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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4 comments 2 called-out Comment Now Follow Comments
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
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Earnings Estimates
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Printer-friendly
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News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Nordstrom Corporate Strategy Appendices
Ap
pe
nd
ix P
A-C
VC
-OC
htt
p
ww
wr
eale
stat
efo
rum
sco
mc
ante
chd
ocs
Ses
sio
n
20
A1
pd
f
6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
News
Most Recent
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Technology
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Tech Bytes
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SPECS Show
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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SCIENCE raquo
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OPINION raquo
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BUSINESS raquo
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John Oliv er Prepares toHost lsquoThe Daily Showrsquo
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INSIDE NYTIMESCOM
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
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1 2 gt
Check out the 10 Best Jobs of
2012
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Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
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Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
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Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
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246
281
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174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
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See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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Fast high-quality printed brochures Callfree to discuss your brochure
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
6613 Retail Therapy Not Anymore hellip With Technology Shopping is More Stressful Than Ever | Chain Store Age
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 12
Welcome Log In Create an Account
A bou t Su bscr ibe Jobs Media Kit LinkedIn RSS Tw itter Facebook
RELATED CONTENT
Survey Back-to-school sales may
soar 16
Fast-fashion retailers slow dow n to
engage w ith customers
Let the converged retailing evolution
begin
Kantar Retail Holiday forecast mixed
Survey More holiday shoppers to use
social media mobile this year
Retail Therapy Not Anymore hellip With Technology Shopping is MoreStressful Than Ever
APRIL 24 2013
By Brian Gillespie Continuum
Once upon a time shopping was simple People drove to the store
viewed the selection at hand decided what they wanted and bought
Now however shoppers are confronted with an amazing array of
channels through which they can research browse and purchase
engaging with both brands they know and those they donrsquot in
increasingly complex ways
In addition to brick-and-mortar stores they are interacting with
companies through web sites mobile sites mobile apps social media
email phone online chat video chat discount coupon sites and if you
can believe it more The customer journey they take from identifying a
need to considering a product using a new product and becoming a
loyal customer is no longer a linear path but rather a rollercoaster of
parallel and intersecting lines and loops
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies mdash and in theory at least should be empowering They can research it here touch it
there compare it here read review there question here get answers there get personal recommendations
here get coupons there deliver here return there hellip the choices are endless
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products however have shown precisely the opposite Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced
Since most of them adopt new channels quite readily itrsquos easy to find themselves suddenly out of their comfort
zones
The most common feelings resulting from the experience now are stress frustration alienation uncertainty
and confusion Where once shopping was therapy for people now people need therapy to shop The solution
Create a unified experience mdash crafting the system of interactions that form the customerrsquos experience of an
organization and the companyrsquos means of delivering it Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation on which companies should focus in order to deliver a great
shopping service experiences
Generate and maintain confidence Once shoppers have built sufficient confidence in the qualities of a product
or service they will be more likely to take the leap to purchase Without that confidence they will be more likely
to delay or cancel the purchase Companies can provide ldquoconfidence buildersrdquo along the shopping process to
help bolster this feeling For example after customers have decided on which product they want and are
completing their checkout process online the lack of information about delivery costs or delivery times is a
common confidence buster They are more likely to abandon their cart and shift their attention to another retailer
if companies donrsquot build confidence with clear and transparent information on shipping
Facilitate the power of influence Knowing how diverse shoppers can be positively influenced can speed the
path to purchase Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust For instance Nikonrsquos USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them The
ldquoDigitutorrdquo contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results mdash helping the shopper understand their particular needs and identify them with a specific
product
Make channel transitions seamless Shoppers get confused and frustrated by their inability to transition
between channels that dont work with one another This can slow down the purchasing process or cause people
to decide not to buy One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels Nordstrom is a pioneer in delivering a seamless
omni-channel experience being one of the first companies to integrate its online and offline inventories
PRINTE-MAIL SHARE
Appendix PA-CVC-OC
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
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Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
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Diamond Chain Store Age
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Diario IP Mark Distribucion Actualidad
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
Go to Complete List raquo
Log in to see w hat your friends are sharingon nytimescom Privacy Policy | WhatrsquosThis
Whatrsquos Popular Now
Most Popular - Business
1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
1 0 Googlersquos Washington Insider
Trash Burning With a Clean-Energy TwistSPECIAL REPORT SMART BUSINESS raquo
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Lessons Learned Czech Banks Thrive
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
Ads by Google whats this
You Could Be Owed pound2400If Youve Had A Credit Card
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BOOMING raquo
A Reluctant West PointPrince on Prom Night
OPINION raquo
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SCIENCE raquo
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OPINION raquo
Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
BUSINESS raquo
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ARTS raquo
John Oliv er Prepares toHost lsquoThe Daily Showrsquo
Home World US NY Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top
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REPRINTS
INSIDE NYTIMESCOM
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
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See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
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IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
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News Release
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ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
6613
chainstoreagecomarticleretail-therapy-not-anymore-hellip-technology-shopping-more-stressful-ever 22
About CSA Media Kit Subscribe Jobs Privacy Policy
copy 2013
Post a Comment
Shoppers can purchase products online and pick them up or return them in stores or order out-of-stock items
online that are then shipped from a nearby store In this way the website and brick-and-mortar stores
complement one another rather than compete
Deliver a customer experience that adjusts to your customerrsquos needs for knowledge Shoppers enjoy
discovering a new product or product attribute they did not know or expect especially if they can relate to it on
an emotional level That discovery can empower and galvanize shoppers and encourage them to make a
purchase Understanding how a product or experience will resonate with consumersrsquo needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight Often
small attributes can offer a big bang A cruise control that allows the driver to increase or decrease speed one
mph at a time an easy way to recycle a toothbrush an automatic way to pay a bill mdash all speak to an inner
emotional driver in the consumer The safe driver the concerned environmentalist and the absent-minded
financial planner all will respond positively to discovering these unique and distinctive features
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization This is important However this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companyrsquos points of
contact Creating feelings of joy and confidence rather than anxiety will ensure that a consumerrsquos decision to
purchase will be less circuitous and more fulfilling overall and that shopping will be something they look forward
to once again
Brian Gillespie is a digital design principal at Continuum a global innovation and design consultancy
More Web ExclusivesGuest Commentaries
Related Terms Newsletter TechTalk Tuesday Exclusives amp Analysis Technology Brian
Gillespie Business Continuum Coupon Customer experience Customer experience management Electronic
commerce Marketing Omni-channel Retailing Online shopping Retailing Shoppers Drug
Mart Shopping Technology
Lebhar-Friedman
websites
Ret a il Grou p
Chain Store Age
Walmart Supplier New s
Drug Store New s
Home Channel New s
Retailing Today
RetailCareersNow
Specialty Pharmacy
DSN Collaborative Care
Ev en t s - Ret a il
Retail Clinician Congress
ProDealer Industry Summit
SPECS
Executive SPECS
Golden Hammer Aw ards
In du st ry Gu ides Resea rch amp Report s
RetailNet
In t ern a t ion a l
Diamond-Friedman Co Ltd
Diamond Chain Store Age
Diamond Home Center
Diamond Retail Technology
Diario IP Mark Distribucion Actualidad
Diamond Drug Store New s Japan
View mobile site
News
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Appendix PA-CVC-OC
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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BUSINESS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
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Check out the 10 Best Jobs of
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fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
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$40000
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RETIREMENT raquo
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CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
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POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
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+31924 views
246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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MO RE F RO M K EL L Y C L A Y
IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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Brochure Printer - LondonwwwPrint4Londoncom
Fast high-quality printed brochures Callfree to discuss your brochure
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
6613 Nordstrom woos young women with lower prices | Business amp Technology | The Seattle Times
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 13
Winner of Nine Pulitzer Prizes
Business Technology
Originally published March 28 2013 at 710 PM | Page modified March 29 2013 at 622 AM
Nordstrom woos young women with lower prices
Seattle-based Nordstrom has revamped its ldquoSavvy rdquo clothing department to attract trendyy oung women on tight budgets
By Amy Martinez
Seattle Times business reporter
For young women in a wired world amobile device is as much a fashion
statement as the clothes they wear Even ifmoneyrsquos tight many willfind room in theirbudgets for a smartphone and tablet andmake the most of old clothes
Thatrsquos a challenge for Nordstrom whichnow hopes to attract 20- and 30-somethingswith more trendy moderately pricedclothing that better suits their spendinghabits
Nordstromrsquos nearly 120 full-scale stores nationwide have revamped their ldquoSavvyrdquo clothingdepartments to give off an affordable ready-for-the-weekend vibe
At the downtown Seattle Nordstrom bright plexiglass displays call out womenrsquos tops for $36and boyfriend-style jackets for $78 Scattered throughout are $18 woven-leather bracelets andearring-and-necklace sets for less than $40
The makeover builds on Nordstromrsquos move last year to sell edgy cheaper clothes from Britishchain Topshop signaling a desire to go down-market to accommodate smaller budgets
ldquoOne of the things that we heard from our customers for a number of years is lsquoBoy the stuff welove we canrsquot afford and the stuff we can afford we donrsquot like too muchrsquothinsprdquo Nordstrom ChiefFinancial Officer Mike Koppel said at a recent investors conference
ldquoWe felt that we had an opportunity to have better product that was more accessiblerdquo he said
Seattle-based Nordstromrsquos Savvy department now carries newcomers such as MinkPink avintage-inspired label also found at Urban Outfitters as well as BlankNYC which sells ldquospray-onrdquo skinny jeans and studded ripped shorts for $98
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departmentsbringing Savvyrsquos average price down to about $50 from more than $150
ldquoItrsquos nice that theyrsquore offering low pricesrdquo said Tiia Lustig 24 who eyed short flowy skirts for$48 at the downtown Nordstrom last week ldquoItrsquos not just Chanel and Guccirdquo
The new Savvy department also tears a page from the fast-fashion playbook changing up itsmerchandise almost daily to get customers coming back more frequently
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
Go to Complete List raquo
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1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
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wwwsamanagecomAsset_Management
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
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Check out the 10 Best Jobs of
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fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
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$40000
PERSONAL FINANCE raquo
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That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
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CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
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+31924 views
246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
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Amazon AWS Takes Down Netflix On ChristmasEve 102721 views
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Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
MO RE F RO M K EL L Y C L A Y
IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
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Stock Information
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Printer-friendly
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News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml23
ldquoThis is newness at a faster raterdquo said Tricia Smith general merchandise manager of womenrsquosapparel at Nordstrom ldquoThe product comes in at twice the rate of other departments and wersquoreable to react more quicklyrdquo
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to placefor luxury classics
Some say thatrsquos both an unlikely risk and one worth taking anyway
Last May retail analyst Jennifer Black warned of a void between Nordstromrsquos teen-clothingsection and various womenrsquos departments
ldquoThere are no in-between younger brands once she graduates from Brass Plumrdquo Black wrote ina research note to clients ldquoSavvy TBD and Individualist are too expensive and the otherdepartments are too old in our opinionrdquo
Black now gives Nordstrom strong marks for its Savvy shake-up
ldquoTheyrsquove kept some of the older brands and brought in these other brands that are what Irsquodconsider great fashion at attainable pricesrdquo she said ldquoItrsquos really edgy and you can afford itand it just seems like itrsquos gaining tractionrdquo
Womenrsquos apparel down
Since the recession Nordstrom and other department-store stalwarts have had to get creativeas global rivals HampM and Zara bring runway trends to the malls faster and cheaper At the sametime young women are stretching their budgets across an ever broader set of products
Nordstromrsquos sales rose a solid 12 percent last year to more than $11 billion but its largestmerchandise category mdash womenrsquos apparel mdash shrank to 31 percent of the total from 33 percentin 2011
ldquoWhen the consumer cares more about their cellphone than their outfit we know we have achallenge in the industryrdquo said Marshal Cohen chief industry analyst at market-research firmThe NPD Group
ldquoItrsquos no longer about me telling you what I think you want Itrsquos now about reacting to what youtell me you want and at a price you think is worthwhilerdquo he said ldquoNordstrom is saying lsquoWeneed to compete in the 21st Centuryrsquordquo
Positive signs
Cosmetics accessories and menrsquos apparel have become a bigger part of the Nordstrom businessas womenrsquos apparel has waned The company says sales of handbags makeup and menrsquosfashion were especially strong last year while womenrsquos apparel picked up toward the end
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month Italso is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119at the end of 2012
President Blake Nordstrom says the efforts appear to be working ldquoWe anticipate continuingimprovement in our womenrsquos business in 2013 and an expansion of Topshop into more storesrdquohe said on a February earnings call
College student Chandler Jones 20 browsed Nordstromrsquos large shoe selection Monday atWestfield Southcenter in Tukwila admiring the new Toms Spring collection She said shersquosloyal to Nordstrom when it comes to shoes but for clothes she also shops at HampM Forever 21even Target to save some money
Appendix PA-CVC-AP
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
Go to Complete List raquo
Log in to see w hat your friends are sharingon nytimescom Privacy Policy | WhatrsquosThis
Whatrsquos Popular Now
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1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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BUSINESS raquo
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ARTS raquo
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Home World US NY Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top
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REPRINTS
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
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IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
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News Release
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ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
6613
seattletimescomhtmlbusinesstechnology2020663776_nordstromsavvyxmlhtml 33
ldquoI find myself buying phone cases for 30 bucks when I could be buying something elserdquo shesaid
Amy Martinez 206-464-2923 or amartinezseattletimescom On Twitter amyemartinez
Appendix PA-CVC-AP
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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BOOMING raquo
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SCIENCE raquo
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OPINION raquo
Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
BUSINESS raquo
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ARTS raquo
John Oliv er Prepares toHost lsquoThe Daily Showrsquo
Home World US NY Region Business Technology Science Health Sports Opinion Arts Style Travel Jobs Real Estate Autos Back to Top
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REPRINTS
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
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Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
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See whos up amp whos down right now raquo
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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246 281 174 454 2
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
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News Release
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ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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BUSINESS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
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1 2 gt
Check out the 10 Best Jobs of
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Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
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Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
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wealthiest people
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register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
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A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
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News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Appendix PA-CVC-ME
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
Go to Complete List raquo
Log in to see w hat your friends are sharingon nytimescom Privacy Policy | WhatrsquosThis
Whatrsquos Popular Now
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1 Economic View Breadwinning Wiv es and Nerv ousHusbands
2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
4 Defy ing Nay say ers lsquoGatsby rsquo Prov es a Box-OfficeWinner
5 DealBook Behind the Rise in House Prices WallStreet Buy ers
6 FDA to Reconsider Restrictions on Diabetes Drug
7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
9 Merck Has Solid Results in a Cancer Drug Trial
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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wwwsamanagecomAsset_Management
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
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246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
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Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
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Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
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A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
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Printer-friendly
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News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 14
Search All NYTimescom
Global DealBook Markets Economy Energy Media Personal Tech Small Business Your Money
Advertise on NYTimescom
Add to Portfolio
Nordstrom Inc
Go to your Portfolio raquo
Enlarge This Image
Jim Slosiarek f or The New York Times
Merchandise being processed at the600000-square-foot NordstromContact and Fulf illment Center in CedarRapids Iow a The center ships anaverage of 20000 packages a day
Nordstrom Links Online Inventory to Real World
Stuart Isett f or The New York Times
Employees at Nordstromrsquos f lagship store in Seattle can check online for available merchandise at any location
By STEPHANIE CLIFFORD
Published August 23 2010
SEATTLE mdash Retailers have been flailing about a bit in their efforts to
get people to shop again deploying all sorts of gimmicks and
promotions to spur customer spending
Wal-Mart hoped that deeper cuts in its
standard rollbacks would be a draw
but then said the prices went too low
At Saks perhaps customers would go
for designer labels if the lines offered
less-expensive items And for Macyrsquos
how about inexpensive clothes by
Madonna
The secret at least for Nordstrom has not involved a
piercing insight into a customerrsquos mind Rather it has
changed the way that it handles of all things inventory
And that has brought the department store more success in
improving sales than at most of its competitors whose
recent reports signaled that their consumers were still
cautious
The change works this way Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstromcom She could see where it was available at nearby stores and
reserve it for pickup the same day
More significant if the Web warehouse was out of that bag it did not matter Inventory
from Nordstromrsquos 115 regular stores is also included Maybe there was just one handbag
left in the entire company sitting forlornly in the back of the Roosevelt Field store mdash it
would be displayed online and store employees would ship it to the Web customer
What Nordstrom did on its Web site mdash displaying stock from both the Web warehouse and
its stores all at once was unusual And that said Jamie Nordstrom president of
China ReapsBiggest Benefitsof Iraq Oil Boom
Dev elopmentSpurs LargerFight Ov erTurkish Identity
Log In With Facebook
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2 A Paean to Forbearance (the Rough Draft)
3 Dev oted to Politics MSNBC Slips on Breaking News
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5 DealBook Behind the Rise in House Prices WallStreet Buy ers
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7 This Man Is Not a Cy borg Yet
8 Chinese Bid for US Pork Had Links to Wall Street
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Appendix PA-CVC-IN
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
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billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
Game Of Thrones Season 3 Episode 9Game Of Thrones Season 3 Episode 9Review The Rains Of CastamereReview The Rains Of Castamere
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Democrats New Argument Its A GoodDemocrats New Argument Its A GoodThing That Obamacare DoublesThing That Obamacare DoublesIndividual Health InsuranceIndividual Health InsurancePremiumsPremiums +139678 views
War In Syria Highlights Why USWar In Syria Highlights Why USNeeds Fifth-Gen FightersNeeds Fifth-Gen Fighters +37973 views
Dept of Homeland Security Forced toDept of Homeland Security Forced toRelease List of Keywords Used toRelease List of Keywords Used toMonitor Social Networking SitesMonitor Social Networking Sites
+31924 views
246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
check if an alternative size or color is available elsewhere without needing a
register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
MO RE F RO M K EL L Y C L A Y
IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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Brochure Printer - LondonwwwPrint4Londoncom
Fast high-quality printed brochures Callfree to discuss your brochure
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
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Stock Information
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Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 24
Nordstrom Direct drove ldquosome pretty meaningful resultsrdquo
In fact Nordstrom based in Seattle has been the department store with one of the best
improvements in same-store sales over the last year when its overall sales reached $826
billion While it may not seem revolutionary a melding of Web site and store is
surprisingly rare in the retailing world
ldquoYoursquore talking about traditional retailers that have traditional ways of doing things and
sometimes those barriers are hard to break downrdquo said Adrianne Shapira an analyst at
Goldman Sachs
Wal-Mart has added a feature where online shoppers can ship items to nearby stores and
Targetcom shows which stores carry which items but customers cannot buy them in
advance
Among Nordstromrsquos competitors such fluidity is hard to find Ms Shapira said ldquoI donrsquot
see anyone going to the length they arerdquo she said of Nordstrom In the 11 months since
Nordstrom made the inventory change its same-store sales mdash sales at stores open more
than a year a crucial measure in retail mdash have outperformed the department store
average measured by Thomson Reuters
In those 11 months Nordstromrsquos same-store sales increased by an average of 8 percent In
the 11 months before the shift they decreased an average of 119 percent (The
improvement is not all because of the inventory change mdash the economy improved and
Nordstrom made other operating changes)
Nordstrom began overhauling its online approach two years ago adding the option to
shop and buy online and pick up the item in a store ldquoIt was the first thing that we did
because the No 1 call we got at our call center was lsquoHey Irsquom looking at this item online
can I look at it at my storersquo rdquo Mr Nordstrom said
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way since those so-called multichannel shoppers spend four times on
average what a one-source shopper does Mr Nordstrom said
Inventory was a big issue too If Nordstromcom did not have the item someone wanted
it was not as if the customer would wait for the company to restock it Mr Nordstrom
said ldquoIf we donrsquot have it yoursquore going to go back to Google and say lsquoWho else has itrsquo rdquo he
said ldquoWe have 115 full-line stores out there mdash chances are one of them has itrdquo
In September 2009 the company wove in individual storesrsquo inventory to the Web site so
that essentially all of the stores were also acting as warehouses for online
Results were immediate The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day and has stayed there (although
Mr Nordstrom cautioned that doubling was from a small base)
ldquoCustomers that were looking for an item we had their sizerdquo he said That meant the
company hired a few more shipping employees to wrap and send items from each store
But he said increased sales more than offset the cost
It also means that inventory is moving faster and often at higher prices ldquoIf wersquore out of
something on the Web site itrsquos probably late in the season and the stores are trying to clear
it outrdquo he said ldquoBy pulling merchandise from the store yoursquove now dramatically lessened
the likelihood that yoursquoll take a markdownrdquo
Nordstromrsquos inventory turnover which measures how quickly a company goes through
inventory in a given year went to 541 in 2009 from 484 in 2005 a five-year high
ldquoThe health of our business when wersquore turning faster versus turning slower itrsquos night and
dayrdquo Mr Nordstrom said
Keith Jelinek director in the global retail practice at the consulting firm AlixPartners said
that Nordstromrsquos changes could give it a competitive advantage but showing accurate
inventory information to customers was difficult
ldquoThe customer ordering via the Web site is not concerned with where the product is only
that it is in stockrdquo Mr Jelinek said in an e-mail message but that could easily go wrong if
a sales clerk entered an incorrect item number which would ldquoincorrectly display what the
Ads by Google whats this
IT Inventory ManagementInventory Management Software
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wwwsamanagecomAsset_Management
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
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SCIENCE raquo
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Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
Game Of Thrones Season 3 Episode 9Game Of Thrones Season 3 Episode 9Review The Rains Of CastamereReview The Rains Of Castamere
+150687 views
Democrats New Argument Its A GoodDemocrats New Argument Its A GoodThing That Obamacare DoublesThing That Obamacare DoublesIndividual Health InsuranceIndividual Health InsurancePremiumsPremiums +139678 views
War In Syria Highlights Why USWar In Syria Highlights Why USNeeds Fifth-Gen FightersNeeds Fifth-Gen Fighters +37973 views
Dept of Homeland Security Forced toDept of Homeland Security Forced toRelease List of Keywords Used toRelease List of Keywords Used toMonitor Social Networking SitesMonitor Social Networking Sites
+31924 views
246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
check if an alternative size or color is available elsewhere without needing a
register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
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IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
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Brochure Printer - LondonwwwPrint4Londoncom
Fast high-quality printed brochures Callfree to discuss your brochure
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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246 281 174 454 2
4 comments 2 called-out Comment Now Follow Comments
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
04062013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimescom
wwwnytimescom20100824business24shophtml_r=0 34
A version of this article appeared in print on August 24 2010 on page B1 of the New York edition
Nordstrom Inc Get E-Mail Alerts
Shopping and Retail Get E-Mail Alerts
E-Commerce Get E-Mail Alerts
Related Searches
customer could see online While for the retailer their financial inventory is still
accuraterdquo
On Saturday Nordstrom introduced an updated Web site trying to make it more
interesting for customers and easier to navigate
The new site adds editorial features like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings Mr
Nordstrom said the company drew from sites like Net-a-Porter which combine
magazinelike stories with shopping The site will also allow customers to post messages or
photos While customers are no doubt swamped with social-networking options already
Mr Nordstrom pointed to the more than 120000 product reviews added to
Nordstromcom since that feature was introduced last fall
The company has also improved how shoppers can search for products allowing searches
with multiple criteria mdash check boxes allow someone to search for say a purple cocktail
dress under $150 for a curvy figure
Web-design experts asked to review the site were split on its success Martin Zagorsek a
partner at Launch Collective a fashion-business consulting firm said that the editorial
features did not promote the products mentioned within them which was ldquoa no-brainerrdquo
But Andy Rhodes director for commerce at the marketing firm SapientNitro said that
Nordstrom had long been ahead of the game on the digital-to-physical connection ldquoand
itrsquos nice to see theyrsquove brought that capability to the forefront with the new
Nordstromcomrdquo
All the changes Mr Nordstrom said were about satisfying customers but that translated
into profits
ldquoWe can sell more without having to buy more inventoryrdquo he said ldquoThat plays through to
margins and ultimately earningsrdquo
Try unlimited access to NYTimescom for just 99cent SEE OPTIONS raquo
Ads by Google whats this
You Could Be Owed pound2400If Youve Had A Credit Card
You Could Be Owed A Refund
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BOOMING raquo
A Reluctant West PointPrince on Prom Night
OPINION raquo
Anxiety House of Death
SCIENCE raquo
Apocaly pse and OtherLov e Stories
OPINION raquo
Whatrsquos MissingWithout aFatherRoom for Debate asksWhen mothers arebreadwinners dofathers bring anythingunique to the table
BUSINESS raquo
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ARTS raquo
John Oliv er Prepares toHost lsquoThe Daily Showrsquo
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04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
Game Of Thrones Season 3 Episode 9Game Of Thrones Season 3 Episode 9Review The Rains Of CastamereReview The Rains Of Castamere
+150687 views
Democrats New Argument Its A GoodDemocrats New Argument Its A GoodThing That Obamacare DoublesThing That Obamacare DoublesIndividual Health InsuranceIndividual Health InsurancePremiumsPremiums +139678 views
War In Syria Highlights Why USWar In Syria Highlights Why USNeeds Fifth-Gen FightersNeeds Fifth-Gen Fighters +37973 views
Dept of Homeland Security Forced toDept of Homeland Security Forced toRelease List of Keywords Used toRelease List of Keywords Used toMonitor Social Networking SitesMonitor Social Networking Sites
+31924 views
246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
check if an alternative size or color is available elsewhere without needing a
register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
The Real Cost Of An iPhone 5 112962 views
Amazon AWS Takes Down Netflix On ChristmasEve 102721 views
5 Reasons Y ou Should Leave GoDaddy (AndHow) 100703 views
Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
MO RE F RO M K EL L Y C L A Y
IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
Incident problem change amp CMDB startsat $2995 Download amp Try Now
You Could Be Owed pound2400CapitalOneBankRefundsnet
Had A Capital 1 Credit Card You CouldBe Owed A Refund
Brochure Printer - LondonwwwPrint4Londoncom
Fast high-quality printed brochures Callfree to discuss your brochure
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
Best Retail Jobs
Retail Business Plans
Best Business Opportunities
Top Franchise Opportunities
Retail Inventory Control
Starting a Retail Business
Internet Business Ideas
Marketing Strategies
See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
Print Report Corrections Reprints amp Permissions
From Around the Web
How Cruise Lines
Fill All Those
Unsold Cruise
Cabins
5 Dumb Mistakes
That Will Destroy
Y our Retirement
How to Speed Up
Y our PC - Tricks
Manufacturers Hate
New Exercises Can
Strengthen Brain
How Penny Stocks
Create Millionaires
Every Day
How New iPads are
Selling for Under
$40
New Tech Lets Y ou
Speak a Language in
10 Day s
News Flash This
Girl Can Drive It
225 Y ards Can
Y ou
Post Your CommentPlease log in or sign up to comment
246 281 174 454 2
4 comments 2 called-out Comment Now Follow Comments
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
04062013 Nordstrom in Fashion with Social Media Mobile Tech - US News and World Report
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 12
MONEY
Business amp Economy
Business amp EconomyHOME RETIREMENT PERSONAL FINANCE CAREERS INVESTING
Nordstrom in Fashion with Social Media MobileTechThis Most Connected Company taps social media and mobile tech to meetcustomers where they are
By DAVID HATCH
May 15 2012
At Nordstrom innovation is never out of style The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers conveniencemdashand to stay
competitive as retail migrates online
Selected by US News as one of Americas Most Connected Companies for its use of technology to
expand shopping options Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms Its social media strategy extends well
beyond Facebook Twitter and YouTube to an array of buzz-generating fashion and photo-sharing sites
Recognizing that its customers always want to stay connected the company introduced complimentary
Wi-Fi in its high-end department stores in 2010
[See Americas Most Connected Companies]
To improve customer engagement at its 227 department and discount stores in 31 states Nordstrom joins
a growing list of retailers that are turning to Apple Late last year it distributed 6000 modified iTouch
devices to sales staff that can ring up purchases on the spot a process called mobile checkout and
track inventory Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits
They are constantly pushing the envelope says Patty Edwards principal and chief investment officer for
Trutina Financial and a leading retail expert She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores Leslie Hand research
director for IDC Retail Insights characterizes Nordstrom as fully committed to seamless engagement with
customers whether in store or via the Web
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online
Four years ago it offered shoppers the option to retrieve their online purchases at its stores With
customers gravitating to the Web Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities
[See Theres Retail Magic in Silicon Dust]
The companys tech strategy already is proving beneficial to its bottom line In 2011 Nordstroms Internet
sales grew by 30 percent according to data provided by the retailer During a November 10 earnings call
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearmdashits highest such expenditure ever
A lot of this technology is changing [customer] expectations around speed around convenience and we
are working really hard to keep up with that says Jamie Nordstrom president of Nordstrom Direct the
companys online division The retailers that deliver on those customers expectations are the ones that are
going to get their business says Nordstrom whose great-grandfather founded the clothier more than a
century ago
To stay current about the latest innovations the big-box chain regularly consults with technologists and
venture capitalists as a normal course of business Nordstrom says because we want to know whats
coming around the corner It also keeps a lookout for new retail ventures that are really engaging with
customers he says
In April Nordstrom teamed with Silicon Valley venture capital firms to invest $164 million in Bonobos a
Store RANKINGSSECTIONS SPECIAL REPORTS
BUSINESS amp ECONOMY
Appendix PA-CVC-TE
Appendix PA-CVC-TE
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
RANKINGS LISTS
Best Colleges
Best Grad Schools
Best Hospitals
Best Diets
Best Vacations
Best Cars
Best Doctors
More Rankings raquo
US NEWS amp WORLD REPORT
About US New s
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SECTIONS
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Education
Health
Money
Travel
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More books in
our store
Brow se books raquo
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to 100 (eBook)
Buy now raquo
Get all the latest new s politics opinion
and analysis US New s has to offer
Subscribe to US New s Weekly raquo
Copyright copy 2013 USNew s amp World Report LP Use of this w ebsite constitutes acceptance of our Terms and Conditions of Use Privacy Policy
1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
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246
281
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454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
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Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
check if an alternative size or color is available elsewhere without needing a
register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
The Real Cost Of An iPhone 5 112962 views
Amazon AWS Takes Down Netflix On ChristmasEve 102721 views
5 Reasons Y ou Should Leave GoDaddy (AndHow) 100703 views
Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
MO RE F RO M K EL L Y C L A Y
IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
Incident problem change amp CMDB startsat $2995 Download amp Try Now
You Could Be Owed pound2400CapitalOneBankRefundsnet
Had A Capital 1 Credit Card You CouldBe Owed A Refund
Brochure Printer - LondonwwwPrint4Londoncom
Fast high-quality printed brochures Callfree to discuss your brochure
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
Best Retail Jobs
Retail Business Plans
Best Business Opportunities
Top Franchise Opportunities
Retail Inventory Control
Starting a Retail Business
Internet Business Ideas
Marketing Strategies
See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
Print Report Corrections Reprints amp Permissions
From Around the Web
How Cruise Lines
Fill All Those
Unsold Cruise
Cabins
5 Dumb Mistakes
That Will Destroy
Y our Retirement
How to Speed Up
Y our PC - Tricks
Manufacturers Hate
New Exercises Can
Strengthen Brain
How Penny Stocks
Create Millionaires
Every Day
How New iPads are
Selling for Under
$40
New Tech Lets Y ou
Speak a Language in
10 Day s
News Flash This
Girl Can Drive It
225 Y ards Can
Y ou
Post Your CommentPlease log in or sign up to comment
246 281 174 454 2
4 comments 2 called-out Comment Now Follow Comments
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
04062013
moneyusnewscommoneybusiness-economyarticles20120515nordstrom-in-fashion-with-social-media-mobile-tech 22
From picking a school to buying a
car our rankings help make hard
decisions easier
See all US New s rankings raquo
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1 2 gt
Check out the 10 Best Jobs of
2012
10 Books That Every Investor
Should Read
fast-growing online menswear site Last year it acquired HauteLook a membership-based site that
specializes in flash sales lasting a few days that offer deep discounts on designer brands Also in 2011
Nordstrom invested in Sole Society a shoe club that markets footwear and a year earlier it invested in
Peek an e-tailer that sells clothes for kids up to age 10
You might be interested in
Tags shopping internet technology money social networking
RETIREMENT raquo
Best Places to Retire for Under
$40000
PERSONAL FINANCE raquo
6 Money-Saving Strategies
That May Cost You
INVESTING raquo
Find the Best Mutual Funds
RETIREMENT raquo
How to Retire with $1 Million
CAREERS raquo
7 Tips for Conquering Work
Stress
Appendix PA-CVC-TE
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
Game Of Thrones Season 3 Episode 9Game Of Thrones Season 3 Episode 9Review The Rains Of CastamereReview The Rains Of Castamere
+150687 views
Democrats New Argument Its A GoodDemocrats New Argument Its A GoodThing That Obamacare DoublesThing That Obamacare DoublesIndividual Health InsuranceIndividual Health InsurancePremiumsPremiums +139678 views
War In Syria Highlights Why USWar In Syria Highlights Why USNeeds Fifth-Gen FightersNeeds Fifth-Gen Fighters +37973 views
Dept of Homeland Security Forced toDept of Homeland Security Forced toRelease List of Keywords Used toRelease List of Keywords Used toMonitor Social Networking SitesMonitor Social Networking Sites
+31924 views
246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
check if an alternative size or color is available elsewhere without needing a
register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
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MO RE F RO M K EL L Y C L A Y
IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
Incident problem change amp CMDB startsat $2995 Download amp Try Now
You Could Be Owed pound2400CapitalOneBankRefundsnet
Had A Capital 1 Credit Card You CouldBe Owed A Refund
Brochure Printer - LondonwwwPrint4Londoncom
Fast high-quality printed brochures Callfree to discuss your brochure
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
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Starting a Retail Business
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See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
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10 Day s
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Post Your CommentPlease log in or sign up to comment
246 281 174 454 2
4 comments 2 called-out Comment Now Follow Comments
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
04062013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
wwwmoosylvaniacomtracker20130411nordstrom-incorporates-sms-text-messaging-into-mobile-strategy 11
CONNECT WITH US
HOT ON THE TRAIL OF THE LATEST EXAMPLES OF DIGITAL MARKETING SINCE 2008
SEARCH
POST A COMMENT
Jamie Smith 0 Comments
Posted on April 11 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO
MOBILE STRATEGYApril 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience Available for iPhones and Androids since 2011 the concept behind the original application was
to combine shopping mobile and social elements to create a well-rounded user experience The recent changes took
these basic components and improved upon them by adding SMS messaging options enriched product reviews a
streamlined shopping experience and enhanced overall app performance
In todayrsquos text savvy culture Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app via auto-generated text messages If their contacts choose to click the link within the text
message they are taken to the product page on Nordstromrsquos mobile friendly website where they can find additional product details view images and even
purchase the product
Knowing that texting is important to their customers Nordstrom adjusted their mobile strategy to accommodate them The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI
Do you think Nordstrom made the right choice by adding SMS messaging Find out more here
POSTED IN Featu red Mobile Technology
TAGS Fash ion Re tail
0 Like 13 1
Appendix PA-CVC-TE
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
California To Wal-Mart Enough NoCalifornia To Wal-Mart Enough NoMore Taxpayer Subsidized Profits ForMore Taxpayer Subsidized Profits ForYouYou +177699 views
Game Of Thrones Season 3 Episode 9Game Of Thrones Season 3 Episode 9Review The Rains Of CastamereReview The Rains Of Castamere
+150687 views
Democrats New Argument Its A GoodDemocrats New Argument Its A GoodThing That Obamacare DoublesThing That Obamacare DoublesIndividual Health InsuranceIndividual Health InsurancePremiumsPremiums +139678 views
War In Syria Highlights Why USWar In Syria Highlights Why USNeeds Fifth-Gen FightersNeeds Fifth-Gen Fighters +37973 views
Dept of Homeland Security Forced toDept of Homeland Security Forced toRelease List of Keywords Used toRelease List of Keywords Used toMonitor Social Networking SitesMonitor Social Networking Sites
+31924 views
246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
check if an alternative size or color is available elsewhere without needing a
register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
The Real Cost Of An iPhone 5 112962 views
Amazon AWS Takes Down Netflix On ChristmasEve 102721 views
5 Reasons Y ou Should Leave GoDaddy (AndHow) 100703 views
Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
MO RE F RO M K EL L Y C L A Y
IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
Incident problem change amp CMDB startsat $2995 Download amp Try Now
You Could Be Owed pound2400CapitalOneBankRefundsnet
Had A Capital 1 Credit Card You CouldBe Owed A Refund
Brochure Printer - LondonwwwPrint4Londoncom
Fast high-quality printed brochures Callfree to discuss your brochure
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
Best Retail Jobs
Retail Business Plans
Best Business Opportunities
Top Franchise Opportunities
Retail Inventory Control
Starting a Retail Business
Internet Business Ideas
Marketing Strategies
See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
Print Report Corrections Reprints amp Permissions
From Around the Web
How Cruise Lines
Fill All Those
Unsold Cruise
Cabins
5 Dumb Mistakes
That Will Destroy
Y our Retirement
How to Speed Up
Y our PC - Tricks
Manufacturers Hate
New Exercises Can
Strengthen Brain
How Penny Stocks
Create Millionaires
Every Day
How New iPads are
Selling for Under
$40
New Tech Lets Y ou
Speak a Language in
10 Day s
News Flash This
Girl Can Drive It
225 Y ards Can
Y ou
Post Your CommentPlease log in or sign up to comment
246 281 174 454 2
4 comments 2 called-out Comment Now Follow Comments
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 15
Get two issues of Forbes for FREE Help|Connect|Sign up|Log in
Most Read on Forbes
Follow writerscompanies topics
billionaires and moreon Forbes
Sign up now raquo
T EC H | 4062012 1029PM | 15077 views
Nordstrom Sees Sales BoostFrom Mobile POS Devices
Long lines are one of the worst nightmares for retailers ndash especially
those with consumers about to make purchases worth hundreds of
dollars For these customers standing in line for several minutes
provides the opportunity to think about the purchase they are
about to make This time can allow customers to think about the
necessity of the purchase and the cost and given too much time to
over-analyze the potential purchase a customer standing in line
can easily decide to set aside part of the potential purchase and pay
less for fewer items ndash or even walk away entirely
Retailers like Apple and Home Depot recognized the need to
eradicate this wait several years ago providing employees with
mobile POS devices that enable them check out customers from
anywhere within the store if the customer is paying with a debit or
credit card Employees at Applersquos retail stores have been armed
with iOS devices for several years enabling consumers to easily
make purchases without waiting in line In early 2011 Home Depot
introduced their ldquoFirst Phonerdquo to allow customers to check out
from anywhere within the store also without having to wait in line
Now Nordstrom the
Seattle-based fashion and
beauty retailer offering
apparel shoes makeup and other
beauty products is rolling out mobile
point-of-sale (POS) devices
throughout their full-line stores as
well as in some of their Nordstrom
Rack stores These mobile POS
devices which is a modified iPod
Touch with a merchandise scanner
and credit card slider allow employees to check out customers from anywhere
in the store The app on the device also provides Nordstromrsquos sales staff access
to the companyrsquos entire inventory which is useful when helping customers
NEWS People Places Companies
Kelly Clay
Contributor
Follow (180)
Follow (180)
Kelly Clay Contributor
I write about social media startups and technology trends
Follow 11k
+ show more
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+31924 views
246
281
TweetTweet
174
454
18
2
4 comments 2 called-out Comment Now Follow Comments
New PostsNew Posts
+2 posts th is h ou r+2 posts th is h ou r
Most Most PopularPopular
Meg Wh itm a n Jolts HP
ListsLists
Most Pow er fu l Wom en
VideoVideo
$1 9 0 Million Esta te
California To Wal-Mart Enough No More
Taxpayer Subsidized Profits For You
Appendix PA-CVC-POS
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
check if an alternative size or color is available elsewhere without needing a
register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
The Real Cost Of An iPhone 5 112962 views
Amazon AWS Takes Down Netflix On ChristmasEve 102721 views
5 Reasons Y ou Should Leave GoDaddy (AndHow) 100703 views
Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
MO RE F RO M K EL L Y C L A Y
IT Help Desk ITIL versionwwwManageEnginecomITIL_Help_Desk
Incident problem change amp CMDB startsat $2995 Download amp Try Now
You Could Be Owed pound2400CapitalOneBankRefundsnet
Had A Capital 1 Credit Card You CouldBe Owed A Refund
Brochure Printer - LondonwwwPrint4Londoncom
Fast high-quality printed brochures Callfree to discuss your brochure
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
Best Retail Jobs
Retail Business Plans
Best Business Opportunities
Top Franchise Opportunities
Retail Inventory Control
Starting a Retail Business
Internet Business Ideas
Marketing Strategies
See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
Print Report Corrections Reprints amp Permissions
From Around the Web
How Cruise Lines
Fill All Those
Unsold Cruise
Cabins
5 Dumb Mistakes
That Will Destroy
Y our Retirement
How to Speed Up
Y our PC - Tricks
Manufacturers Hate
New Exercises Can
Strengthen Brain
How Penny Stocks
Create Millionaires
Every Day
How New iPads are
Selling for Under
$40
New Tech Lets Y ou
Speak a Language in
10 Day s
News Flash This
Girl Can Drive It
225 Y ards Can
Y ou
Post Your CommentPlease log in or sign up to comment
246 281 174 454 2
4 comments 2 called-out Comment Now Follow Comments
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 25
The author is a Forbes contributor The opinions
expressed are those of the w riter
Who Just Made a Billion Dollars
Our Real-Time Billionaires scoreboard tracks
the biggest holdings for 50 of the worldrsquos
wealthiest people
See whos up amp whos down right now raquo
check if an alternative size or color is available elsewhere without needing a
register to look up that information
Nordstrom has deployed over 6000 of these devices throughout their 117
full-line stores and at some Nordstrom locations there are more mobile POS
devices than regular registers Colin Johnson a spokesperson for Nordstrom
says that these devices are part of a larger plan for Nordstrom to help ldquoprovide
a more technology enabled store experiencerdquo He notes that in 2005
Nordstrom began offering the option to ship merchandise directly to
customers and in 2009 the company integrated inventory with its online
store In 2010 Nordstrom then introduced WiFi into stores to ldquomake it easier
for customers to stay connected in the stores by using their mobile devices to
shop and to compare and learn more about merchandiserdquo
With WiFi Nordstrom laid a
foundation for these new mobile POS
devices which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in BP (the
trendy young womenrsquos section) and
shoes which is a conglomerate of
smaller departments catering towards
specific demographics Other
departments using these devices
include menrsquos At the flagship
Nordstrom store in downtown Seattle most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic When a Nordstrom customer
checks out with a mobile POS they can sign for their purchase and enter an
email address for a paperless receipt For most Nordstrom customers
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to ldquotake care of customer anywhere in the store We donrsquot have to take
you to the cash register and instead can do that right there with you on
dressing room or when yoursquore trying on shoes ndash and then yoursquore on your
wayrdquo He adds ldquothat kind of ability to increase speed and convenience is
increasingly importantrdquo
Increasingly important for not just the customerrsquos convenience but for
Nordstromrsquos sales According to the companyrsquos 2012 March Sales Report
ldquoPreliminary quarter-to-date total retail sales of $173 billion increased 153
percent compared with total retail sales of $150 billion for the same period in
fiscal 2011rdquo Additionally according to the 2011 Nordstrom Annual Report
ldquoboth the average selling price and the number of items sold increased in 2011
compared with 2010rdquo
Is it a coincidence that the average number of items sold and the average
selling price both increased after implementing mobile point-of-sale devices
While Johnson explains that the new mobile POS at Nordstrom is designed to
provide a ldquofaster and more convenient experience for customers and reduce
the time it takes time for customers to check outrdquo he adds that ldquoanything that
can help that is beneficialrdquo
This efficiency undoubtedly reduces the potential amount of time customers
have to think about their purchases before they reach the register Though
consumers may enjoy the convenience these new mobile POS devices offer
I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
companies building products that solve real
problems Y ou can find me on Facebook
Twitter and Google+ and usually with a cup of
coffee in hand too
K EL L Y C L A Y rsquo S PO PU L A R PO S T S
Lessons From Amy s Baking Company SixThings Y ou Should Never Do On Social Media470209 views
The Real Cost Of An iPhone 5 112962 views
Amazon AWS Takes Down Netflix On ChristmasEve 102721 views
5 Reasons Y ou Should Leave GoDaddy (AndHow) 100703 views
Google Wants To Grab 90 Of Office Users FromMicrosoft 83306 views
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You Could Be Owed pound2400CapitalOneBankRefundsnet
Had A Capital 1 Credit Card You CouldBe Owed A Refund
Brochure Printer - LondonwwwPrint4Londoncom
Fast high-quality printed brochures Callfree to discuss your brochure
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
Best Retail Jobs
Retail Business Plans
Best Business Opportunities
Top Franchise Opportunities
Retail Inventory Control
Starting a Retail Business
Internet Business Ideas
Marketing Strategies
See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
Print Report Corrections Reprints amp Permissions
From Around the Web
How Cruise Lines
Fill All Those
Unsold Cruise
Cabins
5 Dumb Mistakes
That Will Destroy
Y our Retirement
How to Speed Up
Y our PC - Tricks
Manufacturers Hate
New Exercises Can
Strengthen Brain
How Penny Stocks
Create Millionaires
Every Day
How New iPads are
Selling for Under
$40
New Tech Lets Y ou
Speak a Language in
10 Day s
News Flash This
Girl Can Drive It
225 Y ards Can
Y ou
Post Your CommentPlease log in or sign up to comment
246 281 174 454 2
4 comments 2 called-out Comment Now Follow Comments
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
04062013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
wwwforbescomsiteskellyclay20120406nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices 35
TweetTweet 18
Best Retail Jobs
Retail Business Plans
Best Business Opportunities
Top Franchise Opportunities
Retail Inventory Control
Starting a Retail Business
Internet Business Ideas
Marketing Strategies
See Also
A DV ERTISER V IDEO
both Nordstromrsquos 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices
Print Report Corrections Reprints amp Permissions
From Around the Web
How Cruise Lines
Fill All Those
Unsold Cruise
Cabins
5 Dumb Mistakes
That Will Destroy
Y our Retirement
How to Speed Up
Y our PC - Tricks
Manufacturers Hate
New Exercises Can
Strengthen Brain
How Penny Stocks
Create Millionaires
Every Day
How New iPads are
Selling for Under
$40
New Tech Lets Y ou
Speak a Language in
10 Day s
News Flash This
Girl Can Drive It
225 Y ards Can
Y ou
Post Your CommentPlease log in or sign up to comment
246 281 174 454 2
4 comments 2 called-out Comment Now Follow Comments
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 12
Nordstromcom | About Us
investor relations press room nordstrom cares
Investor RelationsHome
Analyst Coverage
Contact Information
Corporate Governance
Earnings
Earnings Estimates
Electronic Delivery ofMaterials
E-mail Alerts
Event Calendar
Financial Reports
Fundamentals
Investor FAQ
News Releases
Safe Harbor
SEC Filings
Stock Information
Stores
Webcasts
Printer-friendly
E-mail this page
News Release
View printer-friendly version
ltlt Back
Nordstrom Reports March Sales
SEATTLE--(BUSINESS WIRE)--Apr 5 2012-- Nordstrom Inc (NYSEJWN) today reported an 86percent increase in same-store sales for the five-week period ended March 31 2012 comparedwith the five-week period ended April 2 2011 Preliminary total retail sales of $103 billion forMarch 2012 increased 147 percent compared with total retail sales of $897 million for thesame period in fiscal 2011
Quarter-to-date same-store sales increased 92 percent compared with the same period infiscal 2011 Preliminary quarter-to-date total retail sales of $173 billion increased 153 percentcompared with total retail sales of $150 billion for the same period in fiscal 2011
SALES RECORDING
To hear Nordstromrsquos pre-recorded March sales message please dial 402-220-6036 beginningtoday at 840 am EDT This recording will be available for one week
MARCH SALES RESULTS
(unaudited $ in millions)
Total Retail Sales Same-store Sales
Fiscal2012
Fiscal2011
Percent
Increase Total
Nordstrom Nordstrom
Rack
March $1029 $897 147 86 93 73
Quarter-to-date $1733 $1503 153 92 104 67
Number of stores Mar-12 Mar-11
Nordstrom 117 115
Nordstrom Rack and other 109 94
Total 226 209
Gross square footage 24790000 24021000
SAME-STORE SALES
Same-store sales include sales from stores that have been open at least one full year as ofthe beginning of the fiscal year Nordstrom includes sales from both full-line stores and Directbecause of the integration of these two channels Total same-store sales include accountingadjustments that are not allocated to Nordstrom and Nordstrom Rack Same-store salesexclude sales made through HauteLook Nordstromrsquos online private sale subsidiary which wasacquired in the first quarter of 2011
EXPANSION UPDATE
In March Nordstrom opened a Nordstrom full-line store at City Creek Center in Salt Lake CityUtah and a Nordstrom Rack store at the Outlets at Orange in Orange Calif In additionNordstrom relocated its Nordstrom Rack store in downtown Seattle Wash to the nearbyWestlake Center
In April Nordstrom plans to open three Nordstrom Rack stores at Boise Towne Plaza in BoiseIdaho North Point MarketCenter in Alpharetta Ga and West Farms Shopping Center inFarmington Conn
FUTURE REPORTING DATES
Nordstromrsquos planned financial release calendar for the next three months currently includes
April Sales Release Thurs May 3 2012
First Quarter Earnings Release Thurs May 10 2012
May Sales Release Thurs May 31 2012
June Sales Release Thurs July 5 2012
ABOUT NORDSTROM
Nordstrom Inc is one of the nationrsquos leading fashion specialty retailers Founded in 1901 as ashoe store in Seattle today Nordstrom operates 226 stores in 30 states including 117 full-linestores 105 Nordstrom Racks two Jeffrey boutiques one treasureampbond store and oneclearance store Nordstrom also serves customers through Nordstromcom and through itscatalogs Additionally the Company operates in the online private sale marketplace through itssubsidiary HauteLook Nordstrom Incrsquos common stock is publicly traded on the NYSE under thesymbol JWN
Appendix PA-CVC-SR
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
04062013 Nordstromcom - Investor Relations - News Release
phxcorporate-irnetphoenixzhtmlc=93295ampp=irol-newsArticleampID=1680511amphighlight= 22
Nordstrom Privacy mdash Your Privacy Rights copy 2011 Nordstrom Inc
symbol JWN
Certain statements in this news release contain or may suggest ldquoforward-lookingrdquo information (asdefined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertaintiesincluding but not limited to anticipated store openings and trends in company operations Suchstatements are based upon the current beliefs and expectations of the companyrsquos management and aresubject to significant risks and uncertainties Actual future results may differ materially from historicalresults or current expectations depending upon factors including but not limited to the impact ofeconomic and market conditions and the resultant impact on consumer spending patterns our ability torespond to the business environment fashion trends and consumer preferences including changingexpectations of service and experience in stores and online effective inventory managementsuccessful execution of our growth strategy including possible expansion into new marketstechnological investments and acquisitions including our ability to realize the anticipated benefits fromsuch acquisitions and the timely completion of construction associated with newly planned storesrelocations and remodels which may be impacted by the financial health of third parties our ability tomaintain relationships with our employees and to effectively attract develop and retain our futureleaders successful execution of our multi-channel strategy our compliance with applicable banking andrelated laws and regulations impacting our ability to extend credit to our customers impact of thecurrent regulatory environment and financial system and health care reforms the impact of anysystems failures cybersecurity andor security breaches including any security breaches that result inthe theft transfer or unauthorized disclosure of customer employee or company information or ourcompliance with information security and privacy laws and regulations in the event of such an incidentour compliance with employment laws and regulations and other laws and regulations applicable to usavailability and cost of credit our ability to safeguard our brand and reputation successful execution ofour information technology strategy our ability to maintain our relationships with vendors trends inpersonal bankruptcies and bad debt write-offs changes in interest rates efficient and proper allocationof our capital resources weather conditions natural disasters health hazards or other marketdisruptions or the prospects of these events and the impact on consumer spending patternsdisruptions in our supply chain the geographic locations of our stores the effectiveness of plannedadvertising marketing and promotional campaigns our ability to control costs and the timing andamounts of share repurchases by the company if any or any share issuances by the companyincluding issuances associated with option exercises or other matters Our SEC reports including ourForm 10-K for the fiscal year ended January 28 2012 contain other information on these and otherfactors that could affect our financial results and cause actual results to differ materially from anyforward-looking information we may provide The company undertakes no obligation to update or reviseany forward-looking statements to reflect subsequent events new information or future circumstances
Source Nordstrom Inc
Nordstrom IncINVESTOR CONTACTTrina Schurman 206-233-6503orMEDIA CONTACTColin Johnson 206-303-3036
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Appendix SH
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-
Appendix CA
- The final submitted hard copy on 07th June 2013 to replace the copy that was submitted on the 05th June 2013pdf
- Corporate strategy-21202244 on 0706pdf
- Binder1pdf
-
- Binder1pdf
-
- appendices nordpdf
-
- appendices nordpdf
-
- PA-LVD-KPpdf
- Appendix PA-CVC-TEALLpdf
-
- Appendix PA-CVC-TEpdf
- Appendix PA-CVC-TE1pdf
-
- Appendix PA-CVC-SRpdf
- Appendix PA-CVC-POSpdf
- Appendix PA-CVC-INpdf
- SHpdf
-
- Nordstrom expands Canadipdf
-
- Appendix PA-CVC-OC1pdf
- PA-CVC-OCAllpdf
- PA-CVC-APpdf
- PA-CVC-FRpdf
-
- PA-CVC-MEpdf
-