Nordstorm's Corporate Culture

Introduction

Nordstrom is one of the most reputable high-end retail chains on an international level. John W. Nordstrom and Carl Wallin were the driving forces behind the legendary chain. The two opened their first shoe store in 1901 named Wallin & Nordstrom in Seattle, WA. In time the company grew to be the largest independent shoe chain in the United States. Change is pertinent for continued growth and the organization expanded to offer a variety of products and services. Throughout the 1960's, Nordstrom flourished and ventured into the clothing market eventually expanding the store to meet the needs of the entire family. The company sells high quality apparel, shoes, cosmetics and accessories targeting customers between the ages of 25-54 years with an average household income of $100,000 (wikinvest). As of 2010, Nordstrom had 193 stores, including its department stores and discounted Nordstrom Rack stores (Associated Press). Technology and innovation helped the firm adjust to the new normal which resulted in positive sales. The economy is currently in a bad state yet Nordstrom's March 2011 revenue increased 5.1% in stores opened at least a year beating analyst Thomson Reuter's prediction of 0.7%. The company said its preliminary figures overall rose 10.1% to $897 million, compare with a total retail sales of $815 million for the same period in fiscal 2010 (Bloomberg Businessweek).

Buyer Power

Service with a smile is a part of Nordstorm's corporate culture. The company positions itself as an "affordable luxury" retailer that operates all of its 100+ Nordstrom department store and Nordstrom Rack stores. The organization recognize the lifetime value of customers and their need to capture as much of their customers spending trends, which resulted in the implementation of Nordstrom's fashion reward, a frequent buyer program (Arlen 1). Nordstrom is committed to customer satisfaction and take heed to customers' suggestions. Based on consumer feedback, the company did not offer eco-friendly products. In 2008, Nordstrom introduced their first reusable shopping tote and in 2009, they launched the second edition made if recycled plastic water bottles. "We chose to produce a bag made from recycled bottles because we knew that our customers were looking for these kind pf alternatives and that would also help reduce a significant waste stream" (Nordstrom). Nordstrom strives to provde unique designs, lines, and products to their stores, but at the same time is able to educate and help customers on the latest trends, what is right for them all while charging an inferior outlay than its competitors. The adopted philosophy helped the company gain a competitive advantage in the fashion retail industry. The buyer power is high since the inventory sold is not unique and substitutes are available.

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