Stores + Sites = Strength in Numbers
If you’re unfamiliar with Nordstrom, Inc. and the way the company operates, its strategy might surprise you. During such a time as this, more and more people are shopping online from the comfort of their home without ever stepping foot in brick-and-mortar retail stores. However, Nordstrom is breaking the mold and continuing to bring customers through their doors, and they have the numbers to prove it.
Nordstrom’s competitive advantage lies in its combination of physical and digital assets. As for store fronts, the flagship retailer manages both full-line stores and off-price stores for a combined total of 377 brick-and-mortar stores. Additionally, Nordstrom, Inc. has a digital presence on 4 other online sites. Furthermore, this retail giant has mastered the art of retaining customers and their spend across a variety of sales platforms. Of those customers who shop with Nordstrom across multiple channels, nearly 80% started their relationship with the company in its stores.
As other retailers like Sears and JCPenney are being forced to close their doors, Nordstrom is steadily continuing to expand its footprint. In 2017, the company had plans to open 17 new Nordstrom Rack locations across the U.S. and Canada, and in 2019, the retail giant opened its “flagship store” on West 57th in New York City. And the expansion of this company’s footprint doesn’t just include fashion. Within its seven-level flagship store in NYC, Nordstrom enhanced the in-store experience by launching seven different and unique food and beverage opens for customers to take advantage of while they are shopping. From Italian-inspired small plates, contemporary pizza, and seafood to a cocktail bar and donut shop, all of these restaurants are owned and operated by Nordstrom.
Nordstrom is maintaining their competitive advantage in the retail industry by continuing to expand its portfolio of revenue stream. For the shopper who prefers high-end designers like Gucci and Balenciaga, there’s Jeffrey Boutique. For the shopper who needs a little advice on how to revamp their wardrobe, there is the Trunk Club clubhouse (a personal styling service). And if you’re like me, someone who was unfamiliar with Nordstrom until 2017 when Memphis became the home of a new Nordstrom Rack, the company utilizes it’s Nordstrom Rack locations to introduce new customers to popular brands at affordable prices. And even if you don’t have a Nordstrom or Nordstrom Rack where you live, you’re still in luck because you can access its off-price stores or designer trends via Nordstrom.com, NordstromRack.com, or HauteLook.com.
Needless to say, Nordstrom is providing undeniable access to its customers while ensuring that the customer shopping experience is unparalleled to any of its competitors. Order online, try-on in store; get your hair and nails done. Or even sit down for a full-course meal and cocktails if you need a pick-me up mid-shopping spree. There’s no doubt that Nordstrom is doing a great job at sustaining its competitive advantage, and it seems that the future is bright for years to come by way of diversification and continued commitment to the customer.
Sources:
Howland, D. (2017, August 11). Nordstrom stands out among faltering department stores. Retrieved February 2, 2020, from https://www.retaildive.com/news/nordstrom-stands-out-among-faltering-department-stores/449149/
Styled Strategy 