Business Strategy of Nordstrom's
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One primary source of influence for Nordstrom's is the fact that it is the third largest upscale apparel retailer in the United States (trailing behind Federated Stores and the May Company.) The term "Upscale" is always used in reports about the store, although that is such a relative term in the United States economy that it has come to be almost meaningless. "Upscale" used to mean more affluent buyers who had more discretionary income, and wanted to spend it on more stylish items. However, such mass retailers as Wal-Mart, Target and K-Mart have also started billing much of their merchandise as "upscale." The financial results of Nordstrom's, illustrated later, suggest that the "upscale" definition has not helped its bottom line. This is significant of another trend in the world economy that those who have money are not particularly anxious to part with it, when the promise of substitute products at a lower price is available.The company, with more than 75 stores and about 40 outlet stores (Nordstrom Rack) in 24 states, also operates a clearance store, two freestanding shoe stores, and three Fatonnable boutiques, and it sells goods online and through two catalogs. From its inception, another area of influence was its strong, almost zealous, devotion to customer service. Culturally, the company refers to its employees as "Nordies" and each employee is challenged to find out ways that they can "go the extra mile" for the customer. In fact, walking into a Nordstrom'
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es and sells his half of the business, which included a second store, to his sons Everett and Elmer.
1929 Wallin sells his share to the brothers after retiring
1933 Lloyd Nordstrom, brother to Everett and Elmer buys in.
1946, company incorporates under Washington State law as a shoe retailer Nordstrom's in 1946.
1963 company diversifies by buying Best Apparel, taking it into full clothing
1966 buys Nicholas Ungar, a fashion chain, and renames its company Nordstrom Best
1971, goes public
1973 changes name back to Nordstrom's
1976, starts Place Two (clothes and shoes) in smaller outlets
1986 first East Coast store
1993 opens Facconable, upscale men's clothing
1994 sets up its first catalog division
1996 six brothers (fourth generation) buy back 20 percent of stock and resume management
I.D. Behavioral Culture
Nordstrom's focus on customer service has become legendary, and the popular press in the Seattle area would often write about Nordies who delivered packages on their way home, helped out poor families, remembered generations of customers, and so on. d a downside: The company was investigated in 1990 for not paying employees for customer services they performed, including delivery of merchandise on their own time
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Some common words found in the essay are:
Conclusions Recommendations, Nordstrom Rack, Competitive Environment, Preview International, Sources Influence, Standard Poor's, Culture Nordstrom's, According Hoover's, Target K-Mart, Everett Elmer, customer service, teen people, jc penney, 10k 2000, profit margin, na president, primary source influence, retail sector, lines merchandise, planning control, blake nordstrom, third largest upscale, set aside $15, planning control system,
Approximate Word count = 1860
Approximate Pages = 7 (250 words per page)
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