corporate strategy assignment - nordstrom by amany hamza

48
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 – Nordstrom (Source: Google)

Upload: amany-hamza

Post on 14-Apr-2017

130 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 2: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 3: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 4: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 5: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 6: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 7: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 8: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 9: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 10: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 11: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 12: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 13: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 14: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 15: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 16: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 17: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 18: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 19: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 20: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 21: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 22: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 23: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 24: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 25: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Leave a Reply

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 26: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Your email address will not be published

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 27: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Name

Email

Website

Message

You may use these HTML tags and attributes lta href= title=gt ltabbr title=gt ltacronym

title=gt ltbgt ltblockquote cite=gt ltcitegt ltcodegt ltdel datetime=gt ltemgt ltigt ltq

cite=gt ltstrikegt ltstronggt

Submit Comment

Submit Comment

Search Stacey Widlitz

0

Share

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 28: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 29: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Finance

Technology

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 30: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Store Planning Construction Facilities

Operations

Real Estate

C-Suite Technology

Tech Bytes

Store Planning Construction Facilities

Hot Concepts

C-Suite

Retail Store of theYear

Multimedia

Operations Real Estate

Community

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 31: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 32: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 33: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 34: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 35: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 36: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Romania Changes Course on Renewable Energy

Lessons Learned Czech Banks Thrive

HOME PAGE TODAYS PAPER VIDEO MOST POPULAR TIMES TOPICS

Business DayWORLD US NY REGION BUSINESS TECHNOLOGY SCIENCE HEA LTH SPORTS OPINION A RTS STYLE TRA V EL JOBS REAL ESTATE AUTOS

RECOMMEND

TWITTER

LINKEDIN

SIGN IN TO E-

MAIL

PRINT

REPRINTS

SHARE

E-MAILED BLOGGED VIEWED

Try a Digital Subscription Log In Register Now

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 37: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Youll Love to Use Try Samanage

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

Ads by Google whats this

You Could Be Owed pound2400If Youve Had A Credit Card

You Could Be Owed A Refund

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 38: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

MBNABankRefundsnet

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

To Reduce Costs Zy ngaLay s Off 520 Workers

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-

MAIL

PRINT

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

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 39: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 40: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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

Contact Us

Store

Advertising Info

Press Room

Site Map

Follow

SECTIONS

New s amp Opinion

Education

Health

Money

Travel

Cars

Science

Law

More books in

our store

Brow se books raquo

How to Live

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

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
Page 41: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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
Page 42: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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
Page 43: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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
Page 44: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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
Page 45: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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
Page 46: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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
Page 47: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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
Page 48: Corporate Strategy Assignment - Nordstrom by Amany Hamza

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