Swot Analysis Of Nordstrom

BACKGROUND:

Nordstrom was incorporated in 1946, but began its operations in 1901 as a shoe store in downtown Seattle, Washington. Nordstrom has established itself as a high-end apparel retailing company. It derives its revenue from the sale of high-quality clothing, shoes, cosmetics, and accessories. Nordstrom is one of the leading fashion specialty retailers in the United States to date and has 112 full-line stores, 69 Nordstrom Racks, 2 Jeffrey boutiques and 1 clearance store.

Nordstrom has grown into a fashion specialty chain with global reach. It offers an unparalleled selection of shoes, clothing and accessories and an extensive range of services to make shopping fun and convenient. In 2011, the company achieved an all-time record for total net sales at $10.5 billion.

Nordstrom has founded itself upon excellent customer service and an unmatched reputation. Nordstrom enjoys a healthy financial position — $1.3 billion in cash on the books, 11 straight quarters of comp-store sales increases, double the industry average of sales per square foot and the No. 20 position in Apparel's Top 50 companies ranked by profit margins — and an enviable market position in terms of the esteem in which it is held.

NORDSTROM COMMITMENT:

Nordstrom works relentlessly to give customers the most compelling shopping experience possible. The one constant? John W. Nordstrom's founding philosophy: offer the customer the best possible service, selection, quality and value. Nordstrom’s “no question asked” return policy is very famous. Its sales representatives send thank-you cards to customers.

Nordstrom’s customer loyalty program, Fashion Rewards Program, rewards customers on four different level based on their annual spending.

PROBLEMS/ISSUES:

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...ailers such as Nordstrom. Others, such as Neiman Marcus and Saks Fifth Avenue, offer similar, if not the exact same, products as Nordstrom at around the same cost. Customers in this market are willing to pay a premium for the unique products these high-end retailers provide.

Nordstrom utilizes several strategies to create and maintain its value. Nordstrom relies on its high quality products and superior customer service to attract and uphold its customers. Nordstrom should position itself in the industry as a high end retailer by selling top of the line products with an exceptional brand image that customers are willing to pay extra for. After a product is sold, the employees of Nordstrom will do nearly anything to satisfy customers after the actual point of sale. This is included in the superior customer service that consumers have come to expect from the company.