While the majority of major department stores are on the decline, Nordstroms in one of the few companies that continues to expand, within the US and even into international markets. You may be wondering, how has such a standardized clothing store been able to differentiate itself during such challenging times? After reading several articles, my analysis shows that Nordstroms is doing two things correct. First of all, they have four revenue streams, unlike most companies, who have a mere two. With their main store, the discount rack and affiliate online stores for both, they have a multi-channel approach that allows there company to appeal to a mass-market as they have can attract both upper and middle-class consumers. Additionally, with the rack, the possibility of putting merchandise back into inventory becomes eliminated. The main stores also do not have to waste space on “sales” as discount good are often located a few blocks away, at the rack location. In fact, this method is so successful that Nordstroms CMO predicts that they will create 8 more rack stores in the next year.
Secondly, Nordstrom’s is focusing on creating value with their customers. At stores such as JC Penny and Winners, it is an arduous task receiving assistance while in the store; however, this is not the case at Nordstrom’s where one-on-one assistance is not rare. If Nordstrums continues with their current business plan, their future looks bright.
