analysis "The family-run company found itself on the bottom shelf after its buyers lost track of changing fashion trends. To compensate, Nordstrom has cut inventory and its ranks of buyers. It has also implemented a new trend-tracking system and plans to use online investments to better study the shopping trends of upscale shoppers. The Nordstrom family owns about one-third of the company's stock" (Hoover's Online).
The company's most recent 10K, filed April 7, 2000 states,
The Company's business is highly competitive. Its stores compete with other national, regional and local retail establishments within its operating areas which carry similar lines of merchandise, including department stores, specialty stores, boutiques, and mail order and internet businesses. The Company believes the principal methods of competing in its industry include customer service, value, fashion, advertising, store location and depth of selection (10K, 2000, 7).
In the big picture, Nordstrom's is Number 320 in the Fortune 500, and is one of the Standard & Poor's 500 major companies. It is in the most competitive of all sectors, retail; and within the retail sector, it is in the most competitive and cost-conscious area, sales of clothing. If it is the third largest "upscale" retailer, its annual sales within the primary retail sector place it much further down the list.
Much of this low sales record is attributed to the fact that the store is not comfortably positioned in the consumer's mind. Consider its ranking within specialty lines of merchandise.
Neiman Marcus, Dillard's/Saks Inc., Tiffany
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