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Nordstrom. Wallin & Nordstrom. He had befriended a man while in Alaska. Nordstrom and Carl F.000 in a gold mine stake and returned to Seattle. Wallin. Then one morning in 1897. in downtown Seattle. young John labored in mines and logging camps as he crossed the United States to California and Washington. John was eager to invest his money. This was the start of what would become the retail legend of Nordstrom. Inc. he picked up a newspaper and read the front-page headline "Gold Found in the Klondike in Alaska. The labor was hard. and there was an over-supply of eager workers. a 16-year-old boy left his home country of Sweden for the promise of New York City. the terrain difficult. In 1901. who owned a shoe repair shop in downtown Seattle. Inc. From the . unable to speak a word of English. is an upscale departmental chain in the United States. the two opened their first shoe store. But within two years. John had earned $13. Back in the Northwest." The very next day. founded by John W. Carl Wallin. To make ends meet.In 1887. He arrived with only five dollars in his pocket.About Nordstrom Nordstrom. The first years in the land of opportunity were hard. Things were no easier in the Klondike. he made plans to head north. It wasn't long before the two decided to go into partnership and open a shoe store together. His name? John W.
In 1928. "Best" was dropped from the company's name. the partners added their second store. and the store assumed its current name of Nordstrom. The 1975-1991 Logo The Target customer Nordstrom sells apparel. cosmetics and accessories to customers who are typically between 25-54 years of age and generate a household income in excess of $100.beginning. Carl Wallin retired a year later and also sold his share of the company to the Nordstrom sons. Nordstrom has grown from a regional department store to a national chain by opening . shoes. Lloyd. John's business philosophy was based on exceptional service. The company built a devoted customer base. A third son. Expansion The exterior of a typical Nordstrom department store at The Florida Mall located in Orlando.It was moved to the New York Stock Exchange in 1999 under the ticker symbol JWN after John W. joined the team in 1933. The company's name was changed to Nordstrom Best in 1969. Everett and Elmer. John Nordstrom retired and sold his share of the company to his sons. In 1973. Florida. quality and value. and in 1923. selection. Nordstrom.000. its founder.
FLAGSHIP: In 1998. Oregon and has a total area of just under 72. .'s son Dan that was followed by an e-commerce business. PLACE TWO: In 1976. Nordstrom expanded into Alaska (the only time by acquisition) by purchasing Northern Commercial Company and opened its first Nordstrom Rack clearance store in Seattle. beginning with a catalog division led by John N. especially from a systems perspective. By contrast.700 m2). By 1975. DIRECT: The Company also expanded into direct sales in 1993. By 1983. Nordstrom Rack. Nordstrom opened a series of stores called Place Two to sell a more limited selection of apparel in smaller markets. and the division was discontinued.000 square feet (6. the downtown Seattle location is the chain's largest store.000 square feet (35. but the cost of upgrading the smaller stores.600 m2). outweighed the benefit. Nordstrom replaced its downtown Seattle store with a new flagship location in the former Frederick & Nelson building across the street.new stores rather than by acquisition of other retailers. the smallest Nordstrom store (as of September 2008) opened in 1980 in Salem. At 383. the company's off-price clearance store. there were ten Place Two stores.
it has distribution centers in Ontario." which offers the same menu but with seating. Currently. Nordstrom operates 115 full-line department stores. Currently. Iowa. and an expanded "hot bar" drink list. Florida. They have recently sold (2007) their stand-alone boutique chain Façonnable. Upper Marlboro. the "Espresso Bar" from older stores has been discontinued and re-introduced as the "eBar" with offering a variety of quick-fix snacks. 86 Nordstrom Rack clearance stores. Smaller stores (mostly consisting of two-stories) now have an "inHouse Cafe. two Jeffrey Boutiques. reaching their peak with the then-largest (and most expensive) Westfield San Francisco Centre California flagship store that opened in 1989. the casual "Classic Cafe" and "Marketplace Cafe. and one final clearance store (Last Chance) all located in 28 different states.As the stores expanded in size. Oregon. California." the "Cafe Bistro" specializing in brick oven entrees and the "Nordstrom Grill" offering food and alcoholic beverages. restaurants were added beginning in 1979.com's fulfillment and contact center is located in Cedar Rapids. Dubuque.Nordstrom. . Nordstrom has also revised its four restaurants (found in select larger stores). Maryland. that included no fewer than four restaurants as well as an English pub. Portland. and Gainesville. Iowa. Recently.
The deal includes Nordstrom paying $180 million in stock and a three-year "earn-out" payment based on Haute Look's financial performance. individually. selection. quality and value.3% decline in same store sales. Nordstrom created fashion departments that fit individuals' lifestyles.Nordstrom's same store sales in 2009 declined by 4. it focused on catering to customers' needs. While Nordstrom was growing nationally. Nordstrom announced the acquisition of HauteLook. an LA-based online retailer that offers flash sales on designer goods. Today. A portion of this difference can be attributed to its fashion focus on "wear-to-work" apparel. The company's philosophy has remained unchanged for more than 100 years since its establishment by John W. Despite having a smaller decline in net sales compared to some of its main competitors.In February 2011. The company positions itself as an "affordable luxury". Nordstrom in 1901: offer the customer the best possible service. Nordstrom struggled just as bad -. which it offered . Instead of categorizing departments by merchandise. Nordstrom has grown from one downtown Seattle shoe store into a nationwide fashion specialty chain with renowned services.2% compared to Saks' -14.7% and Macy's-5. shoes and accessories for the entire family. generous size ranges and a selection of the finest apparel. on the basis of the crucial same store sales retail metric.
The companies reflecting the growing demand in its "affordable luxury" products. .under its own private label. Competitors Nordstrom's competitors in the mid-tier department store industry include Macy's Inc. Nordstrom also competes with companies in the luxury retail industry which include Saks Fifth Avenue and companies in the discount retail industry like Kohl's. Mid-tier department stores are the most affected by the economic downturn because they rely on aspiring middle income consumers to generate revenue-. For Nordstrom. these companies screen. Penney. service is more an “act of faith”..C. These companies provide near-luxury full-price items but also have discount stores as well. hire. Customer Service Customer service is embedded in all aspects of their company culture and seen as a vital means of achieving strategic competitive advantage. Dillard's and J. than a response to a set of carefully crafted company policies or procedures. Nordstrom occupies a positioning between discount and luxury department stores in terms of the price it sells its merchandise at. As such. train and reward based on people who understand and act in accordance with their deeply held customer service philosophy.middle income consumers typically cut back spending and look for discounts as a way to save money during tough economic times.
Encourage Internal Competition 8. Set both your personal and professional goals high. The following list of 8 Management Principles of what can be arguably called America‟s #1 Customer Service Company are: 1. We have great confidence in your ability to achieve them”. There will be no additional rules. . Hire Nice. Nordstrom Rules: Rule #1: Use good judgment in all situations. or division general manager any question at any time. from his book here are the key Learning Points. We're glad to have you with our Company. Sell The Relationship: Service Your Customers Through The Products And Services You Sell 5. new employees were given a copy of the famous Nordstrom's Employee Handbook – a single 5 x 8-inch gray card containing 75 words: “Welcome to Nordstrom. Motivated People 4. store manager. or LESSONS OF THE NORDSTROM WAY. Please feel free to ask your department manager. Empower Employees To Take Ownership 6. Create An Inviting Place for Your Customers 3. Provide Your Customer With Choices 2. Dump The Rules: Tear Down Barriers To Customer Service 7. Commit 100% To Customer Service Example of principle #5: For many years.According to Spector. Our number one goal is to provide outstanding customer service.
If we did. the money will follow. we might start to believe our own stories”. “Our success is simply a matter of service. fair pricing. Disagreements are worked out behind closed doors and a united front is always presented to the public.‟ We know that at this moment. and hires people who they believe are capable of demonstrating it. “The customer is always right” is not a cliché at Nordstrom. selection. The truth is “We can‟t afford to boast.” Their system is embarrassingly simple “we out-service. hard work and plain luck!” „It was never that we were so great. “not service like it used to be.) Nordstrom boasts the highest sales per square foot performance in the retail industry – by almost double. The company values good judgment. . employees don‟t have to worry about whether they are breaking any. (People who succeed in sales understand this paradox. somewhere is getting bad service at Nordstrom When you stop worrying about the money and concentrate on serving the customer. the competition”. but service that never was. motivated men and women to make the extra effort to give customer service that is unequalled in American retailing. Nordstrom‟s culture encourages entrepreneurial. not outsmart. someone. Here are some other elements of the Nordstrom culture as described by Spector and McCarthy. Decision by consensus is how the Nordstrom brothers run their business. it was just that everyone else was so bad.The idea here is that because Nordstrom doesn‟t have many rules.
it dispatches an advanced force of veteran "Nordies" who carry the culture with them and imports it to new employees. better lighting. as are good ideas and suggestions. regulations. Every tier of the pyramid supports the sales staff. so they can compare their performances. wider aisles. because it is too difficult for those employees to break old habits Nordstrom employees are instructed to always make a decision that favors the customer before the company. That's why Nordstrom has more seating. and a more residential feeling. Part of good customer service is (Store Design) creating “a memorable experience”: Store presentation must be understood immediately. paper work. Nordstrom states that it only takes 15 seconds to impress their customers. When the company expands to other regions. The unconditional money back guarantee is designed for the 98% of customers who are honest. Outstanding sales performances are rewarded with prizes and praise. larger fitting rooms. Nordstrom never acquires other chains. Employees have access to sales figures from all departments and stores in the chain. and strict channels of communication erode employee incentive. they are criticized for doing too little. Nordstrom is informally organized as an “inverted pyramid” with the top positions occupied by customers and sales people. They are never criticized for doing too much for a customer. Nordstrom believes that too many rules. .
If you treat customers like royalty and let them know that you will take care of them. At Nordstrom. At its best. and the key to successful selling is providing outstanding customer service. they will usually come back to you.” . Nordstrom would rather hire nice people and teach them to sell. than hire sales people and teach them to be nice. the priority is on Selling. Nordstrom “hires the smile and trains the skill”. sales people always make sure they are acknowledged. Previous retail experience or a college degree has never been a prerequisite for succeeding at Nordstrom. Nordstrom never forgets that it doesn‟t have all the answers. Nordstrom feels that the best training courses come from parents. When customers enter a department. and that sales people are the most valuable people in the company! The underlying Nordstrom culture and philosophy is not difficult to pass on to the next generation because it‟s simple: “Give Great Customer Service. They know that the customers have all the information that they need. They are relaxed and unhurried in order to help the customer feel the same way.
com/2011/02/17/nordstrom-to-acquire-online-retailer-hautelook/ http://en.cfm http://shop.html .com/c/brands-list http://www.wikinvest.hoovers.com/company/Nordstrom_Inc/rctjri-1-1njea3.edu/xlc/about/Customer-Service-A-Culture.nordstrom.-Not-a-Department.com/c/company-history http://www.html http://shop.xavier.washington.nytimes.org/wiki/Nordstrom http://www.wikipedia.nordstrom.com/stock/Nordstrom_(JWN) http://dealbook.References http://www.edu/alumni/columns/june10/nordstrom.