Retailer’s Market Strategies Essay Example
Market Strategies of Nordstrom
The origin of Nordstrom can be traced to 1901 when John Nordstrom and Carl Wallin opened a downtown store in Seattle that they named Wallin & Nordstrom. From the start, the two businesspersons focused on providing exceptional service, variety, quality, and value, which resonated well with the market and led to the opening of the second store in 1928. By 1960, the company had become the largest independent shoe retailer in the U.S. and had expanded to Washington and Oregon (Nordstrom para. 5). Nordstrom then spread its wings by venturing into women and men’s clothing’s in 1963 and 1966 respectively as well as opening stores in Alaska, California, and Virginia. Today Nordstrom has hundreds of stores scattered across the United States where shoppers can purchase shoes, clothes, and accessories. Besides, the company has fully embraced technology to its advantage as its customers can make online purchases through Nordstrom.com and HauteLook. Although it faces stiff competition from other retailers, the company has managed to stand out due to effective business strategy, quality products, customer service, and an innovative retail environment.
Firstly, the company still operates on its founding strategy of offering the best possible service, selection, quality, and value to customers, which makes it ahead of its competitors (Nordstrom para. 16). For example, to enhance buyer’s shopping experience, Nordstrom offers day and night online shopping as well as free after-sale delivery for its buyers. In addition, the company has employed the use of mobile technology that allows customers to locate outlets and items once inside their stores. The company has been able to make its service, its strongest selling point, as well as a key difference maker in the market.
Secondly, the company ensures that it offers high-quality goods to its customers. At all Nordstrom Rack stores, no damaged goods from full-line stores are sold to shoppers. In fact, 80% of the items found at Nordstrom Rack stores are sourced directly from vendors to ensure that customers have access to quality and trendy items (Stansberry n.p.) If a detective product is sold, or a defect appears after years of use, the company takes back the item and provides a full refund to its customers. Besides, the company pays close attention to what its customers want and reacts quickly and appropriately.
Thirdly, the company boasts of innovative retail environments in more than 250 new and remodeled stores. Some of the Nordstrom store departments now have touchscreen tablets where buyers can choose distinct styles for their footwear color and ornaments from a range of options (Solomon n.p.). Customers can try on sample footwear, feel the fabric materials, and then use the 3-Dimension designer app to model their shoes. At the same time, the model studios have shoe stylists to advise shoppers about custom shoes. Once created, customers can pick them from Nordstrom or order for their shipment. Also, the stores are designed to make it spacious, comfortable and to convey a sense of timelessness where shoppers can go about their activities while relaxed. All the department stores have a seat at the entrance and at elevator spaces. Nordstrom’s storms also have widely dispersed restrooms, in-house cash machines, mother’s rooms, and live piano music.
Fourthly, Nordstrom enjoys a worldwide reputation for exceptional customer service. The company’s salespersons are tasked with providing quality services to shoppers. For example, sellers are required to greet the customers as they enter the outlets with the intention of making them comfortable. Also, the salespersons have been given a considerable amount of empowerment to do whatever it takes to make customers happy as they are required to use their best judgment at all times. Solomon acknowledges that the Nordstrom policy of best judgment makes its salesperson able to perform complex and unpredictable tasks as well as finding ways to go the extra mile for a shopper (103). Although the business is more than 110 years, it continues to be a standard against which other companies and organizations privately measure themselves.
Lastly, the company operates 334 stores located in 39 states and Canada, with 205 Nordstrom Racks, 121 full-line stores that enable customers to shop conveniently (Nordstrom para. 10). In 2015, the company introduced pick-up outlets where shoppers can pick up items that are purchased online at the nearest location near them. The introduction of pick-up outlets has enabled it to counter its main competitor Target that employs the same strategy that allows customers to pick online purchases without going into their stores. Also, the pick-up stores would help increase Nordstrom target market as shoppers can get their purchases quickly in locations near them.
To sum up the above conclusion, Nordstrom success can be attributed to effective business strategy, quality products, customer service, and an innovative retail environment. Since its inception, the company has always ensured that it offers the best possible service, quality, and value to customers. Nordstrom ensures that its goods are of the best quality possible and customers are guaranteed full refund for defective products. Its outlets are also well designed and come with in-house cash machines, mother’s rooms, sitting places and extra space to offer a relaxing environment for shoppers. The company also is considered among the best in customer service as it allows its salesperson to use their judgments to satisfy buyer’s needs.
Handbook For Becoming The «Nordstrom» Of Your Industry. Hoboken, New Jersey: John Wiley & Sons, 2012. Print.
Nordstrom. «Nordstrom History». Nordstrom. N.p., 2016. Web. 20 Sept. 2016.
Solomon, Micah. High-Tech, High-Touch Customer Service. New York: American Management Association, 2012. Print.
Stansberry, Glen. «Customer Service Lessons from Nordstrom». OPEN Forum. N.p., 2011. Web. 20 Sept. 2016.
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