Retailing Strategy: Nordstrom's Retail Positioning Strategy

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Nordstrom’s retail positioning strategy provides it with the competitive edge it needs to differentiate it from competitors who also serve similar markets.

First, Nordstrom is unique through its excelling customer service. As a full-service retailer, Nordstrom assists customers in every phase of the shopping process. Because they carry more specialty goods, customers will need and want more assistance leading to increased value of customer service. One of their policies is that they will accept any merchandise that people bring back without asking any questions. As a result, people feel more confident about purchasing products from there, since they can buy something with the comfort and knowledge that Nordstrom has an excellent return
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Nordstrom retail stores have large hallways, and everything is presented in a very classy manner. The color scheme includes pale yellows, whites, and gold, to provide a more elegant appearance in the store in order to make the shopped feel special. The design is also seen through product organization. Compared to stores like Macy’s, which organize their products based on brand, Nordstrom organizes their products based on lifestyle. Because of this, it is easier for shoppers to find clothes similar to their style as opposed to by brand. In effect, shoppers will purchase more products. This also is a type of experiential retailing, where Nordstrom customers are able to experience the elements of their lifestyle within one section. More so, the product presentation will draw people’s eyes to products, even if they are not looking for it. This gives Nordstrom a competitive advantage in relation to other similar retail stores because it makes their store look more glamorous and high-end. While other stores may focus on value, Nordstrom utilizes the retail positioning strategy to make a customer feel more high-end and…show more content…
As a result, they are able to cater to and target a larger demographic market. While their standard Nordstrom products provide a higher-end quality, focusing on upscale shoppers who are high class, Nordstrom Rack targets the middle-class, mid-scale shoppers who may not be able to afford Nordstrom products on a regular day. This price decision allows them to target a completely different market segment of customers who are typically younger and focus on value. Much of their target market is also the young millennial generation. Many other similar retail stores, like Macy’s or Sears, have difficulty attracting this market. Because millenials are younger, Nordstrom aims to build strong relationships with these individuals, as then they will continue shopping at Nordstrom as they get older, increasing the customer lifetime value. Through being able to target two major market segments, Nordstrom holds a competitive advantage over store like Target, who target one market of middle-class
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