Nordstrom Essay

The economic crisis that started in 2007 affected the business of upscale department stores countrywide. Upscale department stores understand that the items they sell are considered discretionary items, so when there is an economic downturn, they are one of the first industries to be hit. When looking over the Nordstrom Annual Reports from the last few years, there are two things evident: this company has a lasting strategy and they work hard to continuously evolve this strategy. Their strategy includes constantly evaluating risks in the market such as economic conditions, competitive market forces, availability of merchandise, and growth. With an incredible sense to stay ahead of the trends, minimize turnover time, and serve their customers with an uncanny ability, they have easily become one of the top department stores in the country. Nordstrom’s core strength revolves around their customer-first attitude, customer loyalty and their aptitude for merchandising. Going forward we want to be more than just customer focused. Instead, we’re working to become a truly customer-driven organization. †[1] One way Nordstrom is working to become more customer-driven is by building upon their multi-channel system. This multi-channel network, known as Nordstrom Direct, is made up of their online site, and catalog. Over the past three years, Nordstrom has made great strides to ensure that they are fulfilling the needs and desires of all customers. â€Å"We believe online and ecommerce represent our next big opportunities. Within two years more customers will access the Internet via their phone than their computers. We’re responding†[2] All of the effort put into the improvement of the system is showing clear results in the financials. The economic recession was felt all over the U. S. including Nordstrom, however they were able to experience an 8. 4% increase in Nordstrom Direct sales during the 2008 fiscal year. [3] Along with improving Nordstrom Direct, an immense amount of effort is being devoted to both the full-line stores and the Nordstrom Rack. Not only has the number of stores expanded over the last few years with a growth of sixteen new stores in 2009 and twenty in 2010, they are capitalizing on their merchandising. Nordstrom takes immense pride in their buyers and the work that these buyers have done over the last few years at the core of the company. They ensure that they are maximizing merchandise flexibility to maintain trends and to evolve with the customers and their ever-changing wants. Merchandise is now as current as it’s ever been, and there is a steady, fresh flow of fashion in and out of the store with a quick turnover system that has been set in place. Customer loyalty is one of the top ways Nordstrom keeps their customers coming back. The relationship with a Nordstrom employee and the customer is a two-way street. The company makes their priorities known and their customers are loyal to them because of it, responding in a very positive way to the services provided. Employees pride themselves on their relationships with customers and ability to provide them with an enjoyable shopping experience. Nordstrom was fortunate to maintain themselves as a company through the 2008 crisis, with a maximum decline of 12. % in sales and a quick rebound. By 2010 they had increased in-store sales by 8. 1% and set a record-breaking sales number at $9. 31 billion. The right strategy and actions performed in the right circumstances will produce growth, and this is what Nordstrom continues to experience with their customer service strategies. â€Å"We plan to keep a steady focus on our customers. We follow, first and foremost, a customer strategy at Nordstrom — not a price, brand, technology or any other corporate strategy. †