Corporate Strategy Assignment - Nordstrom

2013
Figure 1 Nordstrom (Source: Google)
Name: Amany Hamza

Student number: 21202244
Tutor: Geoff Goddin
Course: MBA / Corporate Strategy
This is the final submitted hard copy for your consideration.

Nordstrom Corporate Strategy
Table of Contents
1. Executive Summary ............................................................................................................................ 4
2. Introduction ......................................................................................................................................... 5
3. Dimensions of the industry development ........................................................................................ 6
4. The Paradoxical Choices ................................................................................................................... 8
4.1. THE PARADOX of Compliance versus Choice to the industry development .......................... 8
4.2. THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT .................................. 15
5. Conclusion ......................................................................................................................................... 19
6. Acronyms ........................................................................................................................................... 21
7. Reference .......................................................................................................................................... 22
8. Appendices........................................................................................................................................ 25
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Table of Figures
Figure 1 Nordstrom (Source: Google) .......................................................................................................................... 0

Figure 2 Nordstrom At A Glance (Source: Adapted from Google) ............................................................................. 3
Figure 3 Nordstrom and its web of relational actors...................................................................................................... 7
Figure 4 Retail Market Evolution Model ..................................................................................................................... 12
Figure 5 Generation Share of Population....................................................................................................................... 13
Figure 6 Omni-channel Retailers .................................................................................................................................... 14
Figure 7 Holistic Communication Strategy Across Omni-channels.........17
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Figure 2 Nordstrom At A Glance (Source: Adapted from Google)
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1. Executive Summary
This report develops a critical assessment of Nordstrom Inc. strategys implementations in

relation to its industry development and within its organisational context. It analyses
Nordstrom Inc.s distinctive business model that differs from its competitors, whereas it is
driven by outpacing performance and its savvy competitive strategy. This paper also outlines
the development of its integrative strategic thinking in a way to relieve the tension embodied by
the intense macro environmental forces or as a result of its passion to further grow on the
market and yet to sustain its business heritage as it has been operating in the marketplace for
more than 100 years.
In addition, the assessment cites the core competences of Nordstroms leading position in the
American marketplace. Yet, this leading position is driven by strong inherent culture that counts
for the well execution of Nordstroms strategies. Nordstrom attributes its distinctive
performance in the marketplace to the implications of its integrated communications which is
tightly aligning between meeting customers needs and the company activities in order to
differentiate its products offerings and to seize the targeted segments. Internally this integrated
communication structure, which forms the control perspective, allows a clear understanding of
Nordstroms corporate objectives. Empowerment, which denotes the chaos perspective, on the
other hand is highly regarded to create involvement and commitment in order to deliver these
strategies. This internal formation is its gateway to lead the industry- whereas the US retail
market is moving towards a Post-Modern market evolution phase which signals an era defined
by wall-less Omni-channel stores (PWC, 2012), Nordstrom was the first retailer to integrate its
stores into omni-channels back in 2008 (see Appendix PA-CVC-OC). It also adapts to the new
customers spending habits as noted further in the report. And with Nordstroms consistency in
paying attention to the new consumer trends and preferences, Nordstrom will be the market
dominant.
The conclusion encloses the imperatives for Nordstrom to sustain long term competitive
advantages in the industry and to run a profitable business through efficient anticipation to
what customers need, or want and effective recognition to its employees efforts with taking
into consideration the importance to give back to its communities. The pillars of its forward
vision strategy will position the company to master the highly dynamic marketplace.
Furthermore this format will generate an ethical business to benefit the industry and all
stakeholders.
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2. Introduction
Nordstrom, Inc., the world's number 16th most admired company for 2013 by Fortune, is a
leading fashion specialty retailer offering compelling clothing, shoes and accessories for men,
women and children. Since it was founded in 1901, it has been committed to providing its
customers with the best possible service, selection, quality and value (Nordstrom Company
History, 2013). This philosophy has remained unchanged for over 100 years. Today, the
company mission is still the same.
Nordstrom has developed its own niche in the retail industry as an affordable retailer,
positioned between mid-tier retailers such as the Macy's Inc. stores and high-end, luxury
retailers, including Saks Fifth Avenue and privately-held Neiman Marcus (Wikinvest, 2012). Thus
it offers a broad array of over 500 brands, targeted toward the whole family, through a strong
nationwide network of more than 248 stores situated across 33 states (Nordstrom Company
Facts, 2013). Nordstrom differentiates itself by offering inclusive selection of quality
merchandise at affordable prices (see Appendix PA-CVC-AP); it reformed its pricing strategy to
adapt to the macro-environmental forces where its initial primary target market was the upper
echelons of society, as noted in depth in the later descriptive analysis based on a proactive
pricing strategy which distinguishes it from other mall-based department store retailers and
benchmark against its rivals.
Beyond differentiating its physical product and prices, Nordstrom further differentiates itself
based on its services as of an exemplary one, thereof its customer experience is characterised
by providing high value proposition that fills the void in the American market for luxury fashion
forward brands at attainable prices. Hence Nordstrom has cultivated a distinctive brand in the
marketplace, and while it is known for its selection of designer clothing, its real claim to fame is
its quality customer service. This is driven by a cohesive internal culture to best advocate the
underlying prerequisites of customer service that customers value over and above the product
they're buying (Nordstrom, 2012).
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3. Dimensions of the industry development
The branded fashion industry has benefited from demographic shifts and changes in consumer
preferences over time due to globalization and a rise in brand awareness (see Appendix PA-CVC-
ME). With fashion emerging as a means of self-expression, consumers are increasingly choosing
branded fashion with images or logos over private label. Despite the prolonged instability in the
world economy that has taken its toll on the branded products market - as a result of reduction
in household wealth, falling consumer confidence, frugal discretionary spending patterns, and
shifting consumer demand to value for money bargains and has correlated to erode sales
growth over the last 5 years - the United States still represents the worlds largest branded
apparel market having an estimated share of 29.26%1. The retail fashion industry includes retail
stores and online (PEC Research, 2012).
1 According to Global Industry Analysts Inc.
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Figure 3 Nordstrom and its web of relational actors
.Contemporary brands
such as teen fashion are
seeing explosive growth
S E . The impact of peak
cotton prices is associated with
long lag between the purchase of
raw materials and the appearance of
(Nbcnewyork, 2013); finished apparel goods on store
shelves (Euromonitor, 2012);
.The surge of post digital age Price-sensitive consumers trade down
Rivals-Fierce
tends towards personalised and or wait for promotions as a result of the
competition
customised products, changing economic downturn (Euromonitor,
The high fragmentation 2012);
the landscape on the
industry. of the industry leads to Increasing fuel and transportation
costs as well as labour costs are
increased competitor continue to rise as the standards of
rivalry. living in the developing countries
that house many apparel
manufacturers drive inflation
(Euromonito, 2012)
Competitive Landscape Lens

Incumbent
Rivals
Threat on New 4 Buyer Power
Entrants 3 Is high to
Potential new Threat of 2 moderate due to
entrants face low
Buyer
New 1 the empowered
barriers Power
Entrants 0 customers with
generated by
direct-to- internet
consumer, online advances.
retailers Threat of Supplier
Substitutes Power
. Each state across the

country has consumer Supplier .The emerging
protection laws in place, with Threat on cutting-edge 21century
the goal of preventing Substitutes
Power
technology
businesses from using
Is high because Is low migrates retailers
misleading marketing
campaigns as a means to of the increasing because of services online.
drive sales numbers (Chron, number of the large .The increasing pace of
technology is a double-
2013); discount retailers number of
Labour Concerns Rise amid edged sword that both
Increased Competition &
and supercentres suppliers enables and requires
Costs. like Wal-market available agility and
adaptability;
P/L T
Source: Adapted from De Wit and Meyer, 2010
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4. The Paradoxical Choices
4.1. THE PARADOX of Compliance versus Choice to the industry development
The low level of differentiation between the individual retailers and the fragmented nature
of the industry results in a very competitive environment which makes it difficult for the
industry to outperform the overall market (PEC Research, 2012). Moreover, despite the
improving trends witnessed in retail sales, along with declining unemployment rate confirms
that the U.S. economy continues to be on track for recovery, there is still a general
uncertainty on the economic front with the GDP growth remaining sluggish. Zacks Equity
Research (2013) suggested that this uncertainty in the retail industry development and the
instability noted early into the interplay economy forces underlie risky adaptation to this
industry orthodoxy which can even damage the industry itself on the long-term (De Wit and
Meyer, 2010). The industry structure was characterised by many retailers being unprepared
for the sharp decline in consumer confidence that occurred in late 2007, opting for a bunker
mentality rather than a strategic one, where the most common view was that many retailers
were cutting back in the wrong places of fewer products, less service, or even less inventory
(Gensler, 2008). Another view was that other retailers chose to rest on their laurels without
connecting to the new customer behaviour, which was the reason for them to be selected
out of the industry.
De Wit and Meyer (2010) suggest that, while compliance to the industry rules can be very
beneficial, contradicting them can also be strategically valuable. In the light of this,
compliance to these poor underlying industry dynamics could jeopardise Nordstrom
corporate brand credibility. Whereas the industry recipe was held towards trade-offs
between product quality, cost and customer service, Nordstrom successfully lived up to its
brand promise and has developed an integrative strategic thinking through its innovative
approach of the Omni-channel initiative in 2008 to create new ways of selling (see Appendix
PA-CVC-OC), as well as leverage a masstige2 pricing strategy to adapt to the accelerated pace
of consumers price sensitivity as they are trading down to lower price points, or even
cheaper private label brands and also as a mean to reach out to a wide and diverse target
audience.
2Masstige products are defined as "premium but attainable," and there are two key tenets: (1) They are
considered luxury or premium products and (2) They have price points that fill the gap between mid-market and
super premium (Wikipedia, 2013).
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This paper illustrates the integrative ways of strategic thinking rather than a solution to
tackle infinity of hostile environmental forces, where Nordstrom used the industry dynamics
as a powerful explanatory lens to understand the mainstay of the retail business, the
consumers, and even go beyond meeting their needs to a new concept of anticipating these
needs. Hence it depicts on how to go beyond the crucial stage of transitioning from original
retail model into non-traditional to relate to the new future of retailing.
Capitalising on blending both effectiveness and efficiency attributes to yielding a new
concept called the new efficiency that is tied to the practice of attainable prices of high
end luxury products with emphasis on providing top of the line of customer services. This
contrasted with the approach of the majority of retailers who are trimming their costs by
competing solely on price which resulted later in their failure to relate to consumers needs
and retain them. This made Nordstrom stand out against its rivals. Nordstrom developed an
innovative strategy which demonstrates characteristics of both dichotomous poles to reap
augmented value in the form of ROI (PWC, 2012).
Despite applying the masstige pricing strategy, service is not scarified even at the lower
priced Nordstrom Rack stores. This entails from lowering its cost structure, such as taking
the initiative of integrating its inventory by virtually pooling its online and in-store
inventories (see Appendix PA-CVC-IN). As a result of this, Nordstrom keeps items in the
inventory for an average of 62 days; hence its turning inventory is about twice as fast as its
competitors (Schermerhorn et al, 2011). Also Nordstroms dynamic strategy of being highly
responsive to address customers value-oriented buying behaviour results in the growing
number of its customers and the long term supply/demand balance which accelerate
revenues and lead to scale economies and lower costs with greater agility. The perceived
value from adapting to the industry development embodies an opportunity rather than a
threat of not achieving profits because of lowering its prices.
Most notably, all Nordstrom transformations strategies have built up designated competitive
advantages based on both leadership and dynamics perspectives. Right from the start when
Nordstrom was co-founded in 1901 as a shoe store, it incorporated exceptional customer
services, selection, quality and value forming its brand equity. Drawing from this mission, it
expanded its stores in 1923. By the 1960s the market reached maturity, and in an attempt
to diversify itself it opened for the first time in history a department store which ventured
into the clothing market; under the name of Nordstrom Best; it offered a diverse products
no other competitors offered. In order to retain its competitive advantage, in 1973, it
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opened up its first Nordstrom Rack - the off priced stores - to reinvent new ways to induce
consumers to buy during the economic stagnation (Nordstrom Company History, 2013). By
1975 it adapted to the industry dynamics at the time, as getting out of the recession, and
penetrated into the new American markets.
As of Nordstrom recently, despite the deterioration of economic conditions, Nordstrom
weathered the recession better than most retailers with total sales surpassed $10 billion in
2012, where over $1 billion is coming from its direct sales, a first in the companys history, as
e-commerce achieved an impressive 37 per cent growth (Nordstrom Annual Report, 2013).
Thereof Nordstrom enjoys a healthy financial position that entailed from diversifying its
portfolio marked with a high level of quality merchandise with strong brand presence in full-
line stores for the newest forward fashion with attainable prices, which were at premium
prices before the recession -and in order to retain its customer base it employs tactical
marketing strategies of promotional pricing to offer the implied affordability without
damaging its brand on the long term. In addition, they also found a good presence in lower
priced value market for new brands with its Rack stores.
While its supply chain expedites merchandise in the areas of handling highly innovative
fashion products, partnerships are also enhancing the in-store and online experiences. In
2012, Nordstrom achieved another pioneering advantage by becoming the only major U.S.
retailer to sell a broad assortment from the renowned British fashion brands Topshop and
Topman to entice younger shoppers and to translate its engagement with young customers
through the digital media into compelling merchandise offering that they favour to push on
the sales (Nordstrom Company History, 2013).
As a matter of fact, Nordstrom is making all of the right moves to accelerate sales growth in
line with commitment to stay true to its reputation of having excellent customer service
(Inside FFM, 2012). Hence its continuum customer centricity ranged from its liberal returns
policy, to return items without a receipt to efforts by employees to make a connection with
existing customers and acquire potential ones (Nordstrom Annual Report, 2012). Besides, its
Fashion Rewards Program features as a shopping-based loyalty as Nordstrom operates in
credit segment through its owned federal savings bank to provide private label cards
(Reuters, 2013). On one hand, this has been highly regarded among customers and, on the
other hand, it resulted in robust sales as Nordstrom builds strong value-laden customer
relationships with its customers (Kotler et al, 2012).
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Nordstroms core competences are derived from its customer centric approach which has
created multiple growth opportunities that is coupled with savvy competitive strategy. With
regard to this approach in 2009, Nordstrom aggregated its inventory across its network and
made it visible by displaying stock from both the Web warehouse and its stores all at once
(see Appendix PA-CVC-IN), This might not seem revolutionary in other industries but a
melding of Web site and store was surprisingly rare in the retailing world (The New York
Times, 2010). Thus, such fluidity was hard to find among Nordstroms competitors, therefore
many retailers at the time were experiencing YOY sales decreases at other stores. Although
Nordstrom did have to hire more shipping employees to wrap and ship items from each
store, the increased sales more than offset the operational costs (Banker, 2011).
Selected by U.S. News as one of America's Most Connected Companies for its use of
technology to expand shopping options, Nordstrom has been aggressive about snapping up
promising Internet ventures to diversify its business and experiment with new retail
platforms. Its social media strategy extends well beyond the likes of Facebook, Twitter, and
YouTube to an array of buzz-generating fashion and photo-sharing sites. Recognizing that its
customers always want to stay connected, the company introduced complimentary Wi-Fi in
its high-end department stores in 2010 (see Appendix PA-CVC-TE).
Late 2011, it distributed in its flagship stores 6,000 modified iTouch devices to sales staff that
can ring up purchases on the spot, a process called "mobile checkout" and track inventory
(see Appendix PA-CVC-POS). Sales personnel also use iPads to assist customers with the
selection of everything from wedding wardrobes to cosmetics to business suits (Hatch, 2012).
Despite the high cost of operating these mobile POS devices, the integrative thinking of
reducing the potential amount of time customers have to think about their purchases before
they reach the register has translated into higher profits in both Nordstroms 2012 March
Sales Report (see Appendix PA-CVC-SR). According to the company, 2012 sales was $1.73
billion increased 15.3 per cent compared with total retail sales of $1.50 billion for the same
period in fiscal 2011 (Forbes, 2012).
While customers are trading down, Nordstrom has responded by expanding its off-price Rack
stores. Moreover as Nordstrom has not been a typical retailer, it evolved a new trend to
exploit the strength of the Rack division and benefit from its strong fundamentals in the off-
price space by opening one of its Rack stores a crosswalk away from its flagship in downtown
Seattle (Martinez, 2012). It argued that around 60 per cent of the Rack division's customers
also shop at Nordstrom's flagship stores as they want the newest, latest, greatest thing so for
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their convenience they go across to the full-line store and get it the day it comes out.
Nordstrom is challenging the conventional wisdom that a retailer's full-price and off-price
stores cannibalize each other. Much more complete, this approach seems to contribute to
the industry risk averseness (De Wit & Meyer, 2010). However, it addresses the two poles in
an efficient and effective way. On one hand it allows customers from the Rack to shop at the
full line stores, where most customers shopping there are young customers who are time
deprived so bringing both stores next to each other is far convenient to them. On the other
hand the customers from the flagship store if they want other complementary products at
lower price instead of going to other stores to save them the time driving the whole way out
of town to go to the Rack, they would benefit from just crossing the road and they could shop
there. Most importantly is to divert customers from other stores with products values are
competed away to the Rack for their less competitive products, either less quality or high
prices, in this way to increase customer base. Nevertheless, Nordstrom could be leading the
industry into the transition from Maturation to Post-Modern market as exhibited in figure 4
(PwC/Kantar Retail, 2012).
Figure 4
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Besides, while Rack customers tend to skew younger than Nordstrom's flagship stores whose
customers are from Baby Boomer generation. This is another insightful reason for its
integrative strategy to locate the Rack stores in this new landscape next to the full line stores
to polarise the two reference groups as noted in figure 5. Nordstrom noted that while baby
boomers will hit their peak spending potential in the future (Figure 5), as that happens, it
wants to attract a younger customer without alienating its core customer (Anderson, 2012).
Figure 5
Furthermore, the value innovation underpins Kim and Mauborgne point that innovativeness
comes from fundamentally new and superior ways of creating value for buyers which
contradicts what Moore suggests that it is based on technology pioneering (De Wit & Meyer,
2010). This opened the door for the future not to be innovative in other ways without being
totally dependent on technology where the increasing reliance on cloud computing solutions
to process and store relevant data ads imposes a dimension to low security and high privacy
risk (BDO USA Report Finds, 2013). However, as it is Nordstrom way to incorporate the best
of both worlds, the company expects to spend 25% of its planned five-year capital
expenditures towards e-Commerce and technology investments, including initiatives to
improve e-Commerce delivery and fulfilment, online and mobile experience and
personalisation.
With its preliminary transition towards the omni-channel, Nordstrom has been the industry
rule breaker which has benefited from its innovative transition through its integrated stores -
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the online, brick and mortar, m-commerce (fig 6). Hence this puts Nordstrom 4.8 per cent
ahead of comparable retailers according to Internet Retailer (Djambazov, 2013).
Figure 6 Omni-channel Retailers
Source: Kym Mcnicholas
Moreover, Nordstrom will make its first foray outside the American market by opening four
full line stores in Canada in 2014 with a view to open Rack stores (see Appendix CA). And with
more than 15,000 Canadians already have a Nordstrom credit card, either for online
purchases or for cross-border shopping in bricks-and-mortar locations in the U.S. (CBC News,
2013), Nordstrom has an immense opportunity to expand its customer base. Hence to sustain
growth, Nordstrom evolves its strategies to build a diverse market channels to resonate to
the new frontier of a polarized world in 2020 (PWC, 2012).
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4.2. THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT
Nordstroms approach to the compliance-choice dichotomy in achieving strategic competitive

advantages is exemplary with its approach to empowering the employees, the dynamics
organisational perspectives, and its organisational leadership perspectives reconciled using a
holistic strand (Hamza, 2013). The underlying framework underpins Nordstrom commitment
to never lose sight of its original philosophy which has remained unchanged and is
entrenched in its efficient approach that it follows towards its employees. In order for
Nordstrom to well communicate its corporate brand value and the brand distinctive DNA to
its customers, as well as benchmark against its competitors, Nordstrom approaches its
employees with a shared vision. Furthermore Nordstrom designs its organisation in a way
that enables generative learning3, which is the only sustainable source of its competitive
advantages as exhibited by Peter Senge (De Wit & Meyer, 2010). This approach is in line with
the above noted approach towards acting on the industry development by reconciling both
industry leadership and dynamics dichotomies. Moreover to leverage its strategic decision
making in planning its engagements into the industry development and the relevant
transformational processes, it needs full support from all levels in its hierarchy to give strong
impetus to the fragile initiatives towards the industry change (De Wit and Meyer, 2010).
The Nordstrom family owns 25% of the business, as the 21st century dawned, Nordstrom was
in trouble. Its sales had slowed down and its stock prices had declined. While Blake
Nordstrom took over the CEO position, he reemphasised Nordstrom's personalised service
culture to bring back disenchanted customers. He was quoted as saying "We know by giving
good service we sell more," Blake told BusinessWeek in 2001. Blake attributed his success to
his policy of listening to and supporting his sales force rather than ordering them to perform
(Reference for Business, 2013). It has been perceived that the companys inverted pyramid
where management is on the bottom and salespeople and customers are on the top,
correlate to optimising its internal and external communications and forming a holistic
understanding of its main resources (Figure 7), the total value chain, loyal customer and
potential ones who are the main reason of its existence and sustainability to be a profitable
business (Hamza, 2013).
3 It is about creating as well as adaptive learning, which is about coping as described by Peter Senge,
(Source: De Wit et al, 2010)
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This holistic consortium is driven by tying up between its partners. The employees are
observed as the business partners that offer the best service to their customers to build on
loyalty and generate a profitable relationship to both ends while Nordstrom ROI increases for
being the customers favourite retailer to buy from. The customer, hence, receives a high
perceived value from Nordstroms merchandise offering.
The below-mentioned model of communication eliminate any negative chaos by enabling the
flow of clear, consistent shared vision promoted by ambiguous challenges to find the best
way to the customers and for a dynamic feedback flow among all channels to understand the
latent needs of the customers in order to anticipate what they need and be the best in the
market.
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Figure 7 - Holistic Communication Strategy across Omni-channels
Customers
Engagement B&C Customer-Centricity
Sales and Support People

Capture Value in Return
Capture greater Value

(Achieve Corporate
Feedback Internal integrated culture
Proposition
Objectives)
Department Manager
Want-Satisfying offering B&B Products
Vendors, Distributors,
Regional Managers
ROI Commitment
Board of
Directors
Source: Adapted from Hamza, 2013
Almost all of its heroics, as Nordstrom calls them, can be traced back to the above inverted
triangle organization of priorities, with salespeople at the top and executives at the bottom.
Through this business structure, sales associates on the floor are empowered like
entrepreneurs, given tools like well-stocked stores, digital customer profiles, and thank-you
notes to keep track of and service individual customers in the interest of long term
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relationships to optimize its CRM and retain its customer base. High-tech inventory and
replenishment systems are some of the most important tools with which Nordstrom equips
its employees to become even more efficient, as these tools contribute to making the store a
gateway to the entire retail supply chain rather than the final destination (Lew, 2012).
Nordstroms management empowers its employees to do whatever is needed to satisfy or

even exceed customer needs and expectations; employees serve their customers as if they
are running their own personal business. From Nordstrom standpoint, it stated its output of
achieving its number one goal of providing outstanding customer service. However, despite
this kind of control in setting both the employees personal and professional goals high, it
emphasises having a great confidence in their ability to achieve the goal by using good
judgment in all situations, this considers a potent prescription for chaos by inviting everyone
in the organization to rely solely on good judgment when making decisions (Goman, 2010).
Nordstrom is decentralised; hence it gives a lot of power to supervisor and store managers,
while keeps pushing the power down to the sales floor. It strives to put as much responsibility
as possible into the hands of as many people as possible to give the culture a chance to
progress (Spector, 2012) Despite the decentralisation, people for their outstanding acts of
customer service are rewarded, as a recognition of their remarkable performance and to
motivate others to benefit from this chaos in a positive attitudes in a way of controlling this
chaos. Furthermore the good application of the hygiene factors4 for the positive attitudes
and the motivations catalyses control in multifaceted efforts to emerge order from chaos as
demonstrated by Ralph Stacey (De Wit & Meyer, 2010).
Nordstrom practices both formal and informal training. To help employees learn the
Nordstrom philosophy, the company relies heavily on socialisation with peers and supervisors
to teach that unique brand of customer service delivered by Nordstrom. Hence, Nordstrom
management prevailing view of leading people capitalizes good application of attuning
between the employees hard and soft skills to leverage its unrivalled human resources.
Nordstrom has deliberately set out to counter what it views as negative traits of
centralisation management. It deliberately stresses decentralised management structures,
praises the achievement of individual, make merits the key to promotion and awards
responsibility to bottom line levels, however it established control over the chaos of
4Hygiene factors include supervision, working conditions, security, peer relationships, salary and
company policies (Herzberg).
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decentralisation. In other words, it progresses flexibility with a tacking motion along a well-
defined path of communication (De Wit & Meyer, 2010).
5. Conclusion
Nordstrom has been proactive in anticipating the way of shaping the fashion retail industry
as well as adapting through other transitional stages to preserve its position; the adaptation
is important to relate to the changes happening in the industry till Nordstrom seeks a new
value creation to pick up again and to take the lead. The reasoning then to reconcile both
dichotomies - the industry leadership and the dynamics perspectives - is to hallmark its
competitive advantages.
On the one hand, its savvy approach to the industry development did not only benefit its
leadership role but it has also contributed to the revenue of the fashion retail industry. This
is achieved by being adept at harnessing product, service and process innovation to
anticipate and meet customer needs. Drawing from this concept, Nordstrom proved that
companies can still achieve profit in industries that are going through harsh times conversely
to the inherent profits which exists only in attractive industries. Its achievement of
ascendancy in market share incurred as a reward for its effectiveness and efficiency in
dealing with its core competences through its integrative strategic thinking, being prudent
leaders in the form of stewards to its people and above all contributing to its communities
(De Wit & Meyer, 2010). As part of Nordstrom CSR, it makes ethical business decisions that
benefit all stakeholders. More is in Appendix SH.
On the other hand, Nordstrom has relied on its people to earn a reputation for top-notch
customer service when its selling activities were just in the brick and mortar stores.
Nowadays, with its inherited implementation towards decentralisation and empowerment, it
deliberately relies on them to be the new markets motion - the market of social media and
digital channels - to actively interpret the expectations of these channels. This helps in
creating the right want-satisfying market offering and has transformed the landscape of its
relationship into a B&C conversely to the old model of B2C, where applied through its
holistic spectrum (Hamza, 2013).
The finding of this paper is that gaining a significant competitive advantage should not be
framed by adapting to the industry rules because it means doing business in more or less the
same way as competitors (De Wit & Meyer, 2010). The best trajectory that Nordstrom has
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sought so far is reinventing itself to go beyond the comfort zone of the traditional formats
and home markets to rapidly and continually rethink its stores format. This enables
Nordstrom to capture the best of the two poles opportunities and values, the pole of
compliance and the other pole of choice. And as a matter of fact this reconciliation is the
core competence that makes Nordstrom master the industry development and
differentiates itself from others, hence this unique core competence is hard to imitate.
What distinguishes Nordstrom is very simple; it is its recognition of what people need, they
are the customers who represent the most empowered driver, through the digital and social
media channels, amid other drivers that determines the industry development. Moreover
Nordstroms recognition of what motivates its employees - who perform the designated
activities - with early anticipation to these needs alongside a focus on integrative strategic
thinking to well position itself for the success of the polarized world in 2020, Nordstrom will
position itself at the fine line/market which is created as a result of getting the two
contradictory poles of dichotomies as close as possible to each other. This attempt redefined
by reconciling dichotomies is Nordstroms distinctive strategic thinking that no other
companies in the fashion retail industry have been able to achieve.
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6. Acronyms
ACRONYM MEANING
YOY YEAR ON YEAR
P / L FACTORS POLITICAL, LEGAL FACTORS
E FACTOR ECONOMIC FACTOR
S FACTOR SOCIAL FACTOR
T FACTOR TECHNOLOGICAL FACTOR
POS POINT OF SALE
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7. Reference
Anderson, G. (2012) Nordstrom Doubling Down on Rack Concept [Accessed on May 29, 2013]
http://www.retailwire.com/discussion/16202/nordstrom-doubling-down-on-rack-concept
BDO USA Report Finds (2013) Regulatory Environment Poses a Top Threat to Retail Industry [Accessed on May 29,
2013] http://www.businesswire.com/news/home/20130520005152/en/Regulatory-Environment-Poses-Top-
Threat-Retail-Industry
Bennett, C. (2013) Which Retailer Had the Best December? [Accessed on June 02, 2013]
http://www.fool.com/investing/general/2013/01/16/which-retailer-had-the-best-december.aspx
Bickle, M. (2013) Nonanchor and Anchor Stores Equally Popular among Consumers [Accessed on June 02, 2013]
http://www.forbes.com/sites/prospernow/2013/05/28/nonanchor-and-anchor-stores-equally-popular-among-
consumers/
Business Wire (2013) Regulatory Environment Poses a Top Threat to Retail Industry, BDO USA Report Finds
[Accessed on June 02, 2013] http://www.businesswire.com/news/home/20130520005152/en/Regulatory-
Environment-Poses-Top-Threat-Retail-Industry
Caplinger, D. (2013) What Makes Nordstrom One of America's Best Companies [Accessed on June 02, 2013]
http://www.fool.com/investing/general/2013/02/27/what-makes-nordstrom-one-of-americas-best-
companie.aspx
CBC News (2013) Nordstrom expands Canadian footprint to Yorkdale mall [Accessed on June 02, 2013]
http://www.cbc.ca/news/business/story/2013/04/08/business-nordstrom-yorkdale.html
Chulis , K. (2012) Apply price sensitivity to improve retail performance [Accessed on June 02, 2013]
http://www.ibm.com/developerworks/library/ba-price-sensitivity/
Clay, K. (2012) Nordstrom Sees Sales Boost From Mobile POS Devices [Accessed on May 20, 2013]
http://www.forbes.com/sites/kellyclay/2012/04/06/nordstrom-sees-15-3-increase-in-retail-sales-following-
introduction-of-mobile-pos-devices/
Clifford, S. (2010) Nordstrom Links Online Inventory to Real World [Accessed on May 25, 2013]
http://www.nytimes.com/2010/08/24/business/24shop.html?_r=0
De Wit, B., Meyer, R., (2010) Strategy Process, Content, Context an International Perspective: 4 Ed.
Djambazov, A. (2013) Nordstroms e-commerce bet pays off big [Accessed on May 27, 2013]
http://www.geekwire.com/2013/nordstroms-ecommerce-bet-pays-leaves-big-box-retailers-dust/
Family Business Magazine (2013) Family stewardship at Nordstrom [Accessed June 05, 2013]
http://www.familybusinessmagazine.com/index.php?/blog/family_stewardship_at_nordstrom/
Page | 22
Goman, C. (2010) Nordstrom's one and only rule [Accessed on June 04, 2013]
http://views.washingtonpost.com/leadership/panelists/2010/04/nordstroms-one-and-only-rule.html
Grailresearch (2009) The Global Fashion Industry Growth in Emerging Markets [Accessed on May 20, 2013]
http://www.grailresearch.com/pdf/ContenPodsPdf/Global_Fashion_Industry_Growth_in_Emerging_Markets.pdf
Hamza, A. (2013) Nordstrom Global Marketing Plan.
Hatch, D. (2012) Nordstrom in Fashion with Social Media, Mobile Tech [Accessed on May 25, 2013]
http://money.usnews.com/money/business-economy/articles/2012/05/15/nordstrom-in-fashion-with-social-
media-mobile-tech
Inside FMM (2013) Nordstrom Gets Digital: Mobile Check-Out, Geolocation & Apps [Accessed on May 15,
2013]http://insidefmm.com/2011/06/nordstrom-mobile-marketing-strategy/
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http://www.docstoc.com/docs/24447494/Situation-Analysis-(SWOT-Analysis)---DOC
Kotler, P., Keller, K., Brady, M., Goodman, M. (2012) Marketing Management, Pearson; 2 Ed.
Lew, K. (2012) At Your Customer Service: Lessons from The Nordstrom Way [Accessed on May 29, 2013]
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http://smallbusiness.chron.com/government-regulations-affect-marketing-retail-35217.html
Martinez, A. (2012) Nordstrom Rack ready to open near downtown Seattle flagship [Accessed on May 20, 2013]
http://seattletimes.com/html/businesstechnology/2017727337_nordstromrack12.html
Orange County (2012) Best Department Store - 1st place winner Nordstrom [Accessed on May 20, 2013]
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Page | 23
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rhorn,+Richard+N.&hl=en&sa=X&ei=sh-
xUfHoLYzAPJWEgfAF&ved=0CC4Q6AEwAA#v=onepage&q=nordstrom%20inventory&f=false
Spector, R., McCarthy, P. (2012)The Nordstrom Way to Customer Service Excellence: 2 Ed.
Speer, J. (2012) Nordstrom's Big Secret Revealed [Accessed on May 25, 2013] http://apparel.edgl.com/case-
studies/Nordstrom-s-Big-Secret-Revealed-82375
The Behar Group (2013) Retail Game Changers [Accessed on June 02, 2013]
http://www.realestateforums.com/cantech/docs/Session%20A1.pdf
Wikinvest (2012) Wiki Analysis [Accessed on May 20, 2013] http://www.wikinvest.com/stock/Nordstrom_(JWN)
Wyatt, L. (2013) State of the Industry: Retail Fashion [Accessed on June 02, 2013]
Zacks Equity Research (2013) Retail Industry Stock Outlook - March 2013 [Accessed on June 02, 2013]
http://www.zacks.com/commentary/26346/Retail-Industry-Stock-Outlook-March-2013
Page | 24
6/6/13 Omnichannel-More than Retail Buzzword SW Retail Advisors Stacey Widlitz
Search Search
About Stacey Appendix PA-CVC-OC

Blog
Television Media
Print Media
Contact
GPS UK: As Holiday Dust Settles 75% off is Name of the Game
ICR Retail Takeaways; Managements Do Matter
Jan
08
Omnichannel-More than Retail Buzzword

Blog
by StaceyRetail
This article appeared on thestreet.com Dec 31
Omnichannel has to be the retail buzzword of 2012. Funny, for as often retailers refer to the word, not many
investors seem to really know what it means.
If you google omnichannel a simple Wikipedia explanation: A seamless approach to the consumer
experience through all available channels, ie mobile Internet, computers, bricks and mortar, tv and catalog.
Sounds simple right? Quite the opposite. Integrating in store and online takes years, vision and plenty of loot.
Dont forget we are talking about the seamlessly merging inventory, systems, returns, shipping, pricing and
customer service.
A recent personal experience of retail therapy at Saks (SKS) sums up the importance of this buzzword and
why it is not going away anytime soon.
I recently purchased a full price item at the NY Flagship store. To be specific the day before Thanksgiving.
There were plenty of sales but I am a Saks dream and fell for a full price item. The sales associate assured me
this item would NOT go on sale any time soon. Fast- forward and I see the item 60% off online several
weeks later. Annoyed, I pull up Saks online chat and explain my issue. The response? Unfortunately the
stores may not honor a sales price adjustment. Online and stores are two separate entities. What? Wait a
minute. What happened to omnichannel? You mentioned it no less than 10 x on your Q3 conference call.
I am not picking on Saks but this illustrates the urgency for integration as multi channel consumers spend well
in excess of exclusive channel shoppers. Saks has started the omnichannel process but it will take place in a
phased approach through 2016. Problem is customers like myself may get frustrated along the way and seek
alternatives.
Note: Saks as of the end of last year is no longer breaking out dot com sales
staceywidlitz.com/blog/2013/01/08/omnichannel-more-than-retail-buzzword/ 1/5
6/6/13
Appendix PA-CVC-OC
That brings me to Nordstrom (think happy medium between Macys and Neiman/Saks). Nordstrom was the
forward thinker in the group and as early as 2009 began integrating online and offline inventories. The
company is focused on making omnichannel the real thing and will spend 30% of cap ex ($140M) on
ecommerce this year. Investments including Hautelook and mobile POS rollout should keep JWN well ahead
of the pack.
And just to be sure I tested out the same scenario with Nordstrom.com. The response? There occasionally is
a price difference though we do our best to make sure prices are the same in store and online. Though it does
happen we are happy to honor each others prices. Now that response is customer friendly.
Note: JWN does break out online sales, which increased 38% last quarter.
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Appendix PA-CVC-OC Nordstrom Corporate Strategy Appendices
http://www.realestateforums.com/cantech/docs/Session%20A1.pdf
6/6/13 Retail Therapy? Not Anymore With Technology, Shopping is More Stressful Than Ever | Chain Store Age
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Retail Therapy? Not Anymore With Technology, Shopping is More

Stressful Than Ever
APRIL 24, 2013

Appendix PA-CVC-OC
By Brian Gillespie, Continuum
RELATED CONTENT
Once upon a time, shopping was simple. People drove to the store,
Survey: Back-to-school sales may
viewed the selection at hand, decided what they wanted, and bought.
soar 16%
Now, however, shoppers are confronted with an amazing array of
channels through which they can research, browse, and purchase, Fast-fashion retailers slow dow n to
engaging with both brands they know and those they dont in engage w ith customers
increasingly complex ways.
Let the converged retailing evolution
begin
In addition to brick-and-mortar stores, they are interacting with
companies through web sites, mobile sites, mobile apps, social media, Kantar Retail: Holiday forecast mixed
email, phone, online chat, video chat, discount coupon sites, and, if you
can believe it, more. The customer journey they take from identifying a Survey: More holiday shoppers to use
need to considering a product, using a new product, and becoming a social media, mobile this year
loyal customer is no longer a linear path but rather a rollercoaster of

parallel and intersecting lines and loops.
The emergence of all of these new channels and devices provides consumers with great flexibility in forming
their shopping strategies and, in theory at least, should be empowering. They can research it here, touch it
there; compare it here, read review there; question here, get answers there; get personal recommendations
here, get coupons there; deliver here; return there the choices are endless.
Recent shop-alongs and observations of an internationally diverse group of shoppers on their path to purchasing
products, however, have shown precisely the opposite. Shoppers are as overwhelmed by the extensive range of
similar products and services as they are the range of channels through which the purchase may be influenced.
Since most of them adopt new channels quite readily, its easy to find themselves suddenly out of their comfort
zones.
The most common feelings resulting from the experience now are stress, frustration, alienation, uncertainty,
and confusion. Where once shopping was therapy for people, now people need therapy to shop. The solution:
Create a unified experience crafting the system of interactions that form the customers experience of an
organization and the companys means of delivering it. Our research suggests four opportunity areas that get to
the heart of customer behavior and motivation, on which companies should focus in order to deliver a great
shopping service experiences.
Generate and maintain confidence: Once shoppers have built sufficient confidence in the qualities of a product
or service, they will be more likely to take the leap to purchase. Without that confidence, they will be more likely
to delay or cancel the purchase. Companies can provide confidence builders along the shopping process to
help bolster this feeling. For example, after customers have decided on which product they want and are
completing their checkout process online, the lack of information about delivery costs or delivery times is a
common confidence buster. They are more likely to abandon their cart and shift their attention to another retailer
if companies dont build confidence with clear and transparent information on shipping.
Facilitate the power of influence: Knowing how diverse shoppers can be positively influenced can speed the
path to purchase. Companies that are respected for their depth of knowledge of certain products can leverage
that knowledge upfront to build consumer trust. For instance, Nikons USA web site provides extensive
information for the camera enthusiast to understand whether or not a camera is the right one for them. The
Digitutor contains engaging videos to understand how the camera works and an extensive sample of photos to
show possible results helping the shopper understand their particular needs and identify them with a specific
product.
Mak e channel transitions seamless: Shoppers get confused and frustrated by their inability to transition
between channels that don't work with one another. This can slow down the purchasing process or cause people
to decide not to buy. One way to counter this problem is to take an omni-channel view of the experience and
ensure seamless consistency within and across channels. Nordstrom is a pioneer in delivering a seamless
omni-channel experience, being one of the first companies to integrate its online and offline inventories.
chainstoreage.com/article/retail-therapy-not-anymore--technology-shopping-more-stressful-ever 1/2
6/6/13
Appendix PA-CVC-OC
Shoppers can purchase products online and pick them up or return them in stores, or order out-of-stock items
online that are then shipped from a nearby store. In this way, the website and brick-and-mortar stores
complement one another rather than compete.
Deliver a customer experience that adjusts to your customers needs for k nowledge: Shoppers enjoy
discovering a new product or product attribute they did not know or expect, especially if they can relate to it on
an emotional level. That discovery can empower and galvanize shoppers and encourage them to make a
purchase. Understanding how a product or experience will resonate with consumers needs and building
discoverability into the shopping experience is a great way to create moments of unexpected delight. Often,
small attributes can offer a big bang: A cruise control that allows the driver to increase or decrease speed one
mph at a time, an easy way to recycle a toothbrush, an automatic way to pay a bill all speak to an inner
emotional driver in the consumer. The safe driver, the concerned environmentalist, and the absent-minded
financial planner, all will respond positively to discovering these unique and distinctive features.
Many companies today are focusing on getting on the underlying technology required to build an omni-channel
organization. This is important. However, this effort needs to be complimented and supported by an over-arching
customer-driven strategy that transforms how a company services its customers. This requires a deep
understanding of customer needs and their preferred way of interacting with all of a companys points of
contact. Creating feelings of joy and confidence, rather than anxiety, will ensure that a consumers decision to
purchase will be less circuitous and more fulfilling overall, and that shopping will be something they look forward
to once again.
Brian Gillespie is a digital design principal at Continuum, a global innovation and design consultancy.
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6/6/13 Nordstrom woos young women with lower prices | Business & Technology | The Seattle Times
Winner of Nine Pulitzer Prizes
Business / Technology
Originally published March 28, 2013 at 7:10 PM | Page modified March 29, 2013 at 6:22 AM
Nordstrom woos young women with lower prices

Seattle-based Nordstrom has rev amped its Sav v y clothing department to attract trendy
y oung women on tight budgets.
By Amy Martinez
Appendix PA-CVC-AP
Seattle Times business reporter
For young women in a wired world, a

mobile device is as much a fashion
statement as the clothes they wear. Even if
moneys tight, many willfind room in their
budgets for a smartphone and tablet and
make the most of old clothes.
Thats a challenge for Nordstrom, which

now hopes to attract 20- and 30-somethings
with more trendy, moderately priced
clothing that better suits their spending
habits.
Nordstroms nearly 120 full-scale stores nationwide have revamped their Savvy clothing
departments to give off an affordable, ready-for-the-weekend vibe.
At the downtown Seattle Nordstrom, bright plexiglass displays call out womens tops for $36
and boyfriend-style jackets for $78. Scattered throughout are $18 woven-leather bracelets and
earring-and-necklace sets for less than $40.
The makeover builds on Nordstroms move last year to sell edgy, cheaper clothes from British
chain Topshop, signaling a desire to go down-market to accommodate smaller budgets.
One of the things that we heard from our customers for a number of years is, Boy, the stuff we
love, we cant afford, and the stuff we can afford, we dont like too much, Nordstrom Chief
Financial Officer Mike Koppel said at a recent investors conference.
We felt that we had an opportunity to have better product that was more accessible, he said.
Seattle-based Nordstroms Savvy department now carries newcomers such as MinkPink, a

vintage-inspired label also found at Urban Outfitters, as well as BlankNYC, which sells spray-
on skinny jeans and studded ripped shorts for $98.
High-end labels like Robert Rodriguez and Haute Hippie have moved to other departments,
bringing Savvys average price down to about $50 from more than $150.
Its nice that theyre offering low prices, said Tiia Lustig, 24, who eyed short, flowy skirts for
$48 at the downtown Nordstrom last week. Its not just Chanel and Gucci.
The new Savvy department also tears a page from the fast-fashion playbook, changing up its
merchandise almost daily to get customers coming back more frequently.
seattletimes.com/html/businesstechnology/2020663776_nordstromsavvyxml.html 1/3
6/6/13 Appendix PA-CVC-AP
This is newness at a faster rate, said Tricia Smith, general merchandise manager of womens
apparel at Nordstrom. The product comes in at twice the rate of other departments, and were
able to react more quickly.
Shake-up praised
But what if the changes turn off well-heeled customers who see Nordstrom as their go-to place
for luxury classics?
Some say thats both an unlikely risk and one worth taking anyway.
Last May, retail analyst Jennifer Black warned of a void between Nordstroms teen-clothing
section and various womens departments.
There are no in-between younger brands once she graduates from Brass Plum, Black wrote in
a research note to clients. Savvy, TBD and Individualist are too expensive, and the other
departments are too old, in our opinion.
Black now gives Nordstrom strong marks for its Savvy shake-up.
Theyve kept some of the older brands and brought in these other brands that are what Id
consider great fashion at attainable prices, she said. Its really edgy, and you can afford it,
and it just seems like its gaining traction.
Womens apparel down
Since the recession, Nordstrom and other department-store stalwarts have had to get creative
as global rivals H&M and Zara bring runway trends to the malls faster and cheaper. At the same
time, young women are stretching their budgets across an ever broader set of products.
Nordstroms sales rose a solid 12 percent last year to more than $11 billion, but its largest
merchandise category womens apparel shrank to 31 percent of the total from 33 percent
in 2011.
When the consumer cares more about their cellphone than their outfit, we know we have a
challenge in the industry, said Marshal Cohen, chief industry analyst at market-research firm
The NPD Group.
Its no longer about me telling you what I think you want. Its now about reacting to what you
tell me you want, and at a price you think is worthwhile, he said. Nordstrom is saying, We
need to compete in the 21st Century.
Positive signs
Cosmetics, accessories and mens apparel have become a bigger part of the Nordstrom business
as womens apparel has waned. The company says sales of handbags, makeup, and mens
fashion were especially strong last year, while womens apparel picked up toward the end.
Nordstrom launched Topshop at 14 stores in September and revamped Savvy last month. It
also is expanding its off-price Rack chain to a projected 140-plus stores by next year from 119
at the end of 2012.
President Blake Nordstrom says the efforts appear to be working. We anticipate continuing
improvement in our womens business in 2013 and an expansion of Topshop into more stores,
he said on a February earnings call.
College student Chandler Jones, 20, browsed Nordstroms large shoe selection Monday at
Westfield Southcenter in Tukwila, admiring the new Toms Spring collection. She said shes
loyal to Nordstrom when it comes to shoes, but for clothes she also shops at H&M, Forever 21,
even Target, to save some money.
2/3
seattletimes.com/html/businesstechnology/2020663776_nordstromsavvyxml.html
6/6/13
Appendix PA-CVC-AP
I find myself buying phone cases for 30 bucks when I could be buying something else, she
said.
Amy Martinez: 206-464-2923, or amartinez@seattletimes.com. On Twitter: @amyemartinez.
seattletimes.com/html/businesstechnology/2020663776_nordstromsavvyxml.html 3/3
Appendix PA-CVC-ME
Appendix PA-CVC-ME
04/06/2013 Nordstrom Uses Web to Locate Items and Increase Sales - NYTimes.com
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Employees at Nordstroms flagship store in Seattle can check online for available merchandise at any location.
By STEPHANIE CLIFFORD
Published: August 23, 2010
SEATTLE Retailers have been flailing about a bit in their efforts to RECOMMEND
get people to shop again, deploying all sorts of gimmicks and TWITTER
Most Popular - Business
promotions to spur customer spending. LINKEDIN
E-MAILED BLOGGED VIEWED
SIGN IN TO E-
Add to Portfolio Wal-Mart hoped that deeper cuts in its MAIL 1 . Econom ic View: Breadwinning Wiv es and Nerv ous
Husbands
standard rollbacks would be a draw, PRINT
Nordstrom Inc
2 . A Paean to Forbearance (the Rough Draft)
but then said the prices went too low.
Go to your Portfolio REPRINTS
3 . Dev oted to Politics, MSNBC Slips on Breaking News
Enlarge This Image At Saks, perhaps customers would go
SHARE 4 . Defy ing Nay say ers, Gatsby Prov es a Box-Office
for designer labels if the lines offered Winner
less-expensive items. And for Macys, 5. DealBook: Behind the Rise in House Prices, Wall
how about inexpensive clothes by Street Buy ers
Madonna? 6 . F.D.A. to Reconsider Restrictions on Diabetes Drug

7 . This Man Is Not a Cy borg. Yet.
The secret, at least for Nordstrom, has not involved a 8. Chinese Bid for U.S. Pork Had Links to Wall Street
Jim Slosiarek f or The New Y ork Times piercing insight into a customers mind. Rather, it has 9 . Merck Has Solid Results in a Cancer Drug Trial
Merchandise being processed at the
600,000-square-foot Nordstrom changed the way that it handles, of all things, inventory. 1 0. Googles Washington Insider
Contact and Fulfillment Center in Cedar And that has brought the department store more success in
Rapids, Iow a. The center ships an Go to Complete List
average of 20,000 packages a day. improving sales than at most of its competitors, whose
recent reports signaled that their consumers were still
cautious.
The change works this way: Say that a shopper was looking at a blue Marc Jacobs
handbag at Nordstrom.com. She could see where it was available at nearby stores, and
reserve it for pickup the same day.
More significant, if the Web warehouse was out of that bag, it did not matter. Inventory
from Nordstroms 115 regular stores is also included. Maybe there was just one handbag
left in the entire company, sitting forlornly in the back of the Roosevelt Field store it Trash Burning, With a Clean-
would be displayed online and store employees would ship it to the Web customer. Energy Twist
SPECIAL REPORT: SMART BUSINESS
What Nordstrom did on its Web site displaying stock from both the Web warehouse and Romania Changes Course on Renewable Energy
Lessons Learned, Czech Banks Thrive
its stores all at once, was unusual. And that, said Jamie Nordstrom, president of
www.nytimes.com/2010/08/24/business/24shop.html?_r=0 1/4
Nordstrom Direct, drove some pretty meaningful results.
In fact, Nordstrom, based in Seattle, has been the department store with one of the best
improvements in same-store sales over the last year, when its overall sales reached $8.26
billion. While it may not seem revolutionary, a melding of Web site and store is
surprisingly rare in the retailing world.
Y oure talking about traditional retailers that have traditional ways of doing things, and Ads by Google what's this?
sometimes those barriers are hard to break down, said Adrianne Shapira, an analyst at
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Among Nordstroms competitors, such fluidity is hard to find, Ms. Shapira said. I dont
see anyone going to the length they are, she said of Nordstrom. In the 11 months since
Nordstrom made the inventory change, its same-store sales sales at stores open more
than a year, a crucial measure in retail have outperformed the department store
average measured by Thomson Reuters.
In those 11 months, Nordstroms same-store sales increased by an average of 8 percent. In

the 11 months before the shift, they decreased an average of 11.9 percent. (The
improvement is not all because of the inventory change the economy improved, and
Nordstrom made other operating changes.)
Nordstrom began overhauling its online approach two years ago, adding the option to
shop and buy online and pick up the item in a store. It was the first thing that we did,
because the No. 1 call we got at our call center was, Hey, Im looking at this item online,
can I look at it at my store? Mr. Nordstrom said.
The company was also trying to increase the number of people who shopped at Nordstrom
in more than one way, since those so-called multichannel shoppers spend four times, on
average, what a one-source shopper does, Mr. Nordstrom said.
Inventory was a big issue, too. If Nordstrom.com did not have the item someone wanted,
it was not as if the customer would wait for the company to restock it, Mr. Nordstrom
said. If we dont have it, youre going to go back to Google and say, Who else has it? he
said. We have 115 full-line stores out there chances are one of them has it.
In September 2009, the company wove in individual stores inventory to the Web site, so
that essentially all of the stores were also acting as warehouses for online.
Results were immediate. The percentage of customers who bought merchandise after
searching for an item on the site doubled on the first day, and has stayed there (although,
Mr. Nordstrom cautioned, that doubling was from a small base).
Customers that were looking for an item, we had their size, he said. That meant the
company hired a few more shipping employees to wrap and send items from each store.
But, he said, increased sales more than offset the cost.
It also means that inventory is moving faster, and often at higher prices. If were out of
something on the Web site, its probably late in the season and the stores are trying to clear
it out, he said. By pulling merchandise from the store, youve now dramatically lessened
the likelihood that youll take a markdown.
Nordstroms inventory turnover, which measures how quickly a company goes through
inventory in a given year, went to 5.41 in 2009 from 4.84 in 2005, a five-year high.
The health of our business when were turning faster versus turning slower, its night and
day, Mr. Nordstrom said.
Keith Jelinek, director in the global retail practice at the consulting firm AlixPartners, said
that Nordstroms changes could give it a competitive advantage, but showing accurate
inventory information to customers was difficult.
The customer ordering via the Web site is not concerned with where the product is, only
that it is in stock, Mr. Jelinek said in an e-mail message, but that could easily go wrong if
a sales clerk entered an incorrect item number, which would incorrectly display what the
customer could see online. While, for the retailer, their financial inventory is still
accurate.
On Saturday, Nordstrom introduced an updated Web site, trying to make it more

interesting for customers and easier to navigate.
The new site adds editorial features, like blogs about fashion and videos and photos of
Nordstrom customers showing the clothes they chose for work and for weddings. Mr.
Nordstrom said the company drew from sites like Net-a-Porter, which combine
magazinelike stories with shopping. The site will also allow customers to post messages or
photos. While customers are no doubt swamped with social-networking options already,
Mr. Nordstrom pointed to the more than 120,000 product reviews added to
Nordstrom.com since that feature was introduced last fall.
The company has also improved how shoppers can search for products, allowing searches
with multiple criteria check boxes allow someone to search for, say, a purple cocktail
dress under $150 for a curvy figure.
Web-design experts asked to review the site were split on its success. Martin Zagorsek, a
partner at Launch Collective, a fashion-business consulting firm, said that the editorial
features did not promote the products mentioned within them, which was a no-brainer.
But Andy Rhodes, director for commerce at the marketing firm SapientNitro, said that
Nordstrom had long been ahead of the game on the digital-to-physical connection, and
its nice to see theyve brought that capability to the forefront with the new
Nordstrom.com.
All the changes, Mr. Nordstrom said, were about satisfying customers, but that translated
into profits.
We can sell more without having to buy more inventory, he said. That plays through to
margins and, ultimately, earnings.
A version of this article appeared in print on August 24, 2010, on page B1 of the New York edition.
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Appendix PA-CVC-TE
Nordstrom in Fashion with Social Media, Mobile

Tech
This Most Connected Company taps social media and mobile tech to meet
customers where they are
By DAVID HATCH
May 15, 2012
At Nordstrom, innovation is never out of style. The upscale fashion apparel chain founded in 1901 wins
plaudits for using cutting-edge 21st century technology to offer shoppers convenienceand to stay
competitive as retail migrates online.
Selected by U.S. News as one of America's Most Connected Companies for its use of technology to
expand shopping options, Nordstrom has been aggressive about snapping up promising Internet ventures to
diversify its business and experiment with new retail platforms. Its social media strategy extends well
beyond Facebook, Twitter, and YouTube to an array of buzz-generating fashion and photo-sharing sites.
Recognizing that its customers always want to stay connected, the company introduced complimentary
Wi-Fi in its high-end department stores in 2010.
[See America's Most Connected Companies.]
To improve customer engagement at its 227 department and discount stores in 31 states, Nordstrom joins
a growing list of retailers that are turning to Apple. Late last year, it distributed 6,000 modified iTouch
devices to sales staff that can ring up purchases on the spot, a process called "mobile checkout," and
track inventory. Sales personnel also use iPads to assist customers with the selection of everything from
wedding wardrobes to cosmetics to business suits.
"They are constantly pushing the envelope," says Patty Edwards, principal and chief investment officer for
Trutina Financial and a leading retail expert. She praised the chain for offering a robust online shopping
experience and extending mobile checkout to its Nordstrom Rack discount stores. Leslie Hand, research
director for IDC Retail Insights, characterizes Nordstrom as "fully committed" to seamless engagement with
customers, whether in store or via the Web.
The Seattle-based chain was quick to recognize that customers want more choices and flexibility online.
Four years ago, it offered shoppers the option to retrieve their online purchases at its stores. With
customers gravitating to the Web, Nordstrom shifted most of its inventory online years ago in an effort to
avoid missed sales opportunities.
[See There's Retail Magic in Silicon Dust.]
The company's tech strategy already is proving beneficial to its bottom line. In 2011, Nordstrom's Internet
sales grew by 30 percent, according to data provided by the retailer. During a November 10 earnings call,
Nordstrom President Blake Nordstrom said the retailer plans to increase spending on e-commerce from
$100 million in 2011 to $140 million this yearits highest such expenditure ever.
"A lot of this technology is changing [customer] expectations around speed, around convenience, and we
are working really hard to keep up with that," says Jamie Nordstrom, president of Nordstrom Direct, the
company's online division. "The retailers that deliver on those customers' expectations are the ones that are
going to get their business," says Nordstrom, whose great-grandfather founded the clothier more than a
century ago.
To stay current about the latest innovations, the big-box chain regularly consults with technologists and
venture capitalists "as a normal course of business," Nordstrom says, "because we want to know what's
coming around the corner." It also keeps a lookout for new retail ventures that are "really engaging with
customers," he says.
In April, Nordstrom teamed with Silicon Valley venture capital firms to invest $16.4 million in Bonobos, a
money.usnews.com/money/business-economy/articles/2012/05/15/nordstrom-in-fashion-with-social-media-mobile-tech 1/2
04/06/2013 Appendix PA-CVC-TE
fast-growing online menswear site. Last year, it acquired HauteLook, a membership-based site that
specializes in "flash sales" lasting a few days that offer deep discounts on designer brands. Also in 2011,
Nordstrom invested in Sole Society, a "shoe club" that markets footwear, and a year earlier it invested in
Peek, an e-tailer that sells clothes for kids up to age 10.
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04/06/2013 Nordstrom Incorporates SMS Text Messaging into Mobile Strategy | Moose Tracker
Appendix PA-CVC-TE
H O T O N TH E TRAIL O F TH E LATE ST E XAM PLE S O F DIGITAL M ARKE TIN G SIN CE 2008
CONNECT WI TH US! SEARCH
J amie S mith 0 Comme n ts

Posted on April 11, 2013
NORDSTROM INCORPORATES SMS TEXT MESSAGING INTO

MOBILE STRATEGY
April, 2013
Nordstrom recently added SMS-based product sharing to their mobile application in an effort to further enhance the
consumer experience. Available for iPhones and Androids since 2011, the concept behind the original application was
to combine shopping, mobile and social elements to create a well-rounded user experience. The recent changes took
these basic components and improved upon them by adding SMS messaging options, enriched product reviews, a
streamlined shopping experience and enhanced overall app performance.
In todays text savvy culture, Nordstrom makes it easy for consumers to share products with their friends directly
from their mobile app, via auto-generated text messages. If their contacts choose to click the link within the text
message, they are taken to the product page on Nordstroms mobile friendly website where they can find additional product details, view images and even
purchase the product.
Knowing that texting is important to their customers, Nordstrom adjusted their mobile strategy to accommodate them. The addition of SMS messaging to their
mobile app also enables Nordstrom to expand their reach to include users without Internet-enabled cell phones. Brand managers should take note that listening
to your customers and adapting your strategy to cater to the user can make a huge difference in engagement and ROI.
Do you think Nordstrom made the right choice by adding SMS messaging? Find out more here.
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04/06/2013 Nordstrom Sees Sales Boost From Mobile POS Devices - Forbes
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Appendix PA-CVC-POS
Kelly Clay, Contributor

I write about social m e dia, startups and te chnology tre nds.
Follow (180) Follow 1.1k
T EC H | 4/06/2012 @ 10:29PM | 15,077 vie ws
Nordstrom Sees Sales Boost

From Mobile POS Devices
4 com m e nts, 2 calle d-out Comment Now Follow Comments
Long lines are one of the worst nightmares for retailers especially 246
those with consumers about to make purchases worth hundreds of
Most Read on Forbes
dollars. For these customers, standing in line for several minutes
NEWS People Places C ompanies
provides the opportunity to think about the purchase they are
281
about to make. This time can allow customers to think about the
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necessity of the purchase and the cost, and given too much time to Tw eet More T axpayer Subsidized Profits For
over-analyze the potential purchase, a customer standing in line You +1 7 7 ,6 9 9 views
California
can easily decide to set aside part of the potential purchase and pay 174
To Wal-Mart: Enough! No More
less for fewer items or even walk away entirely. Taxpayer Subsidized Profits For You
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Retailers like Apple and Home Depot recognized the need to
454
eradicate this wait several years ago, providing employees with Democrats' New Argument: It's A Good
T hing T hat Obamacare Doubles
mobile POS devices that enable them check out customers from
Individual Health Insurance
anywhere within the store if the customer is paying with a debit or Premiums +1 3 9 ,6 7 8 views
credit card. Employees at Apples retail stores have been armed
with iOS devices for several years, enabling consumers to easily 18 War In Syria Highlights Why U.S.
Needs Fifth-Gen Fighters +3 7 ,9 7 3 views
make purchases without waiting in line. In early 2011, Home Depot
introduced their First Phone to allow customers to check out Dept. of Homeland Security Forced to
from anywhere within the store, also without having to wait in line. Release List of Keywords Used to
2 Monitor Social Networking Sites
Now, Nordstrom, the +3 1 ,9 2 4 views
Seattle-based fashion and + show more

beauty retailer offering
apparel, shoes, makeup and other
beauty products, is rolling out mobile Follow writers,
point-of-sale (POS) devices companies, topics,
throughout their full-line stores, as billionaires and more
well as in some of their Nordstrom on Forbes
Rack stores. These mobile POS Sign up now
devices, which is a modified iPod

Touch with a merchandise scanner
Kelly Clay
and credit card slider, allow employees to check out customers from anywhere C ontributor
in the store. The app on the device also provides Nordstroms sales staff access Follow (180)
to the companys entire inventory, which is useful when helping customers
www.forbes.com/sites/kellyclay/2012/04/06/nordstrom-sees-15-3-increase-in-retail-sales-following-introduction-of-mobile-pos-devices/ 1/5
check if an alternative size or color is available elsewhere, without needing a I am a Seattle-based Digital Communications
Strategist for HasOffers with a passion for
register to look up that information. companies building products that solv e real
problems. Y ou can find me on Facebook,
Nordstrom has deployed over 6,000 of these devices throughout their 117 Twitter, and Google+... and usually with a cup of
coffee in hand, too.
full-line stores, and at some Nordstrom locations, there are more mobile POS
devices than regular registers. Colin Johnson, a spokesperson for Nordstrom, The author is a Forbes contributor. The opinions
expres s ed are thos e of the w riter.
says that these devices are part of a larger plan for Nordstrom to help provide
a more technology enabled store experience. He notes that in 2005, K EL L Y C L A Y S P O P U L A R P O S T S
Nordstrom began offering the option to ship merchandise directly to Lessons From Amy 's Baking Company : Six
customers, and in 2009 the company integrated inventory with its online Things Y ou Should Nev er Do On Social Media
4 7 0 ,2 0 9 views
store. In 2010, Nordstrom then introduced WiFi into stores to make it easier
for customers to stay connected in the stores by using their mobile devices to The Real Cost Of An iPhone 5 1 1 2 ,9 6 2 views
shop and to compare and learn more about merchandise. Amazon AWS Takes Down Netflix On Christmas
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MO R E F R O M K EL L Y C L A Y
With WiFi, Nordstrom laid a

foundation for these new mobile POS
devices, which Nordstrom finished
initially rolling out in mid-2011 and
are primarily being used in B.P. (the
trendy young womens section) and
shoes, which is a conglomerate of
smaller departments catering towards
specific demographics. Other
departments using these devices
include mens. At the flagship
Nordstrom store in downtown Seattle, most sales associates in these
departments can be found armed with a mobile point-of-sale device and using
them to checkout customers paying with plastic. When a Nordstrom customer
checks out with a mobile POS, they can sign for their purchase and enter an
email address for a paperless receipt. For most Nordstrom customers, Who Just Made a Billion Dollars?
checking out with a mobile POS is an incredibly intuitive and almost
shockingly simple experience.
Johnson explains that the goal of using the mobile POS for Nordstrom is
really to take care of customer anywhere in the store. We dont have to take
you to the cash register, and instead, can do that right there with you on
Our Real-Time Billionaires scoreboard tracks
dressing room or when youre trying on shoes and then youre on your the biggest holdings for 50 of the worlds
way. He adds, that kind of ability to increase speed and convenience is wealthiest people.
increasingly important. See who's up & who's down right now
Increasingly important for not just the customers convenience, but for
Nordstroms sales. According to the companys 2012 March Sales Report,
Preliminary quarter-to-date total retail sales of $1.73 billion increased 15.3 IT Help Desk ITIL version
www.ManageEngine.com/ITIL_Help_Desk
percent compared with total retail sales of $1.50 billion for the same period in Incident, problem, change & CMDB starts
fiscal 2011. Additionally, according to the 2011 Nordstrom Annual Report, at $2995. Download & Try Now
both the average selling price and the number of items sold increased in 2011 You Could Be Owed 2400
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Is it a coincidence that the average number of items sold and the average Be Owed A Refund
selling price both increased after implementing mobile point-of-sale devices? Brochure Printer - London
While Johnson explains that the new mobile POS at Nordstrom is designed to www.Print4London.com
Fast high-quality printed brochures Call
provide a faster and more convenient experience for customers and reduce free to discuss your brochure
the time it takes time for customers to check out, he adds that anything that
can help that is beneficial.
This efficiency undoubtedly reduces the potential amount of time customers

have to think about their purchases before they reach the register. Though
consumers may enjoy the convenience these new mobile POS devices offer,
both Nordstroms 2012 March Sales Report and 2011 sales figures allude to
the real benefit of these new mobile point-of-sale devices.
See Also:
Best Retail Jobs Retail Inventory Control
Retail Business Plans Starting a Retail Business
Best Business Opportunities Internet Business Ideas

T op Franchise Opportunities Marketing Strategies
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04/06/2013 Nordstrom.com - Investor Relations - News Release
Appendix PA-CVC-SR Nordstrom .com | About Us
investor relations press room nordstrom cares
Inve stor R e lations

Hom e
News Release
Analyst C ove rage
C ontact Inform ation

Vie w printe r-frie ndly ve rsion
C orporate Gove rnance << Back
Earnings Nordstrom Reports March Sales
Earnings Estim ate s
SEATTLE--(BUSINESS W IR E)--Apr. 5, 2012-- Nordstrom , Inc. (NYSE:JW N) today re porte d an 8.6
pe rce nt incre ase in sam e -store sale s for the five -we e k pe riod e nde d March 31, 2012 com pare d
Ele ctronic De live ry of
with the five -we e k pe riod e nde d April 2, 2011. Pre lim inary total re tail sale s of $1.03 billion for
Mate rials
March 2012 incre ase d 14.7 pe rce nt com pare d with total re tail sale s of $897 m illion for the
sam e pe riod in fiscal 2011.
E-m ail Ale rts
Q uarte r-to-date sam e -store sale s incre ase d 9.2 pe rce nt com pare d with the sam e pe riod in
Eve nt C ale ndar
fiscal 2011. Pre lim inary quarte r-to-date total re tail sale s of $1.73 billion incre ase d 15.3 pe rce nt
com pare d with total re tail sale s of $1.50 billion for the sam e pe riod in fiscal 2011.
Financial R e ports
SA LES RECORDING
Fundam e ntals
To he ar Nordstrom s pre -re corde d March sale s m e ssage , ple ase dial 402-220-6036 be ginning
Inve stor FAQ today at 8:40 a.m . EDT. This re cording will be available for one we e k .
News Releases MA RCH SA LES RESULTS
Safe Harbor (unaudited; $ in millions)
SEC Filings Total R e tail Sale s Sam e -store Sale s

Fiscal Fiscal Percent Nordstrom
Stock Inform ation 2012 2011 Increase Total Nordstrom Rack
March $1,029 $897 14.7% 8.6% 9.3% 7.3%
Store s
Q uarte r-to-date $1,733 $1,503 15.3% 9.2% 10.4% 6.7%
W e bcasts
Num be r of store s Mar-12 Mar-11

Nordstrom 117 115
Printe r-frie ndly Nordstrom R ack and othe r 109 94
Total 226 209
E-m ail this page
Gross square footage 24,790,000 24,021,000
SA ME-STORE SA LES
Sam e -store sale s include sale s from store s that have be e n ope n at le ast one full ye ar as of
the be ginning of the fiscal ye ar. Nordstrom include s sale s from both full-line store s and Dire ct
be cause of the inte gration of the se two channe ls. Total sam e -store sale s include accounting
adjustm e nts that are not allocate d to Nordstrom and Nordstrom R ack . Sam e -store sale s
e x clude sale s m ade through Haute Look , Nordstrom s online private sale subsidiary, which was
acquire d in the first quarte r of 2011.
EXPA NSION UPDA TE
In March, Nordstrom ope ne d a Nordstrom full-line store at C ity C re e k C e nte r in Salt Lak e C ity,
Utah and a Nordstrom R ack store at the O utle ts at O range in O range , C alif. In addition,
Nordstrom re locate d its Nordstrom R ack store in downtown Se attle , W ash. to the ne arby
W e stlak e C e nte r.
In April, Nordstrom plans to ope n thre e Nordstrom R ack store s at Boise Towne Plaza in Boise ,
Idaho; North Point Mark e tC e nte r in Alphare tta, Ga.; and W e st Farm s Shopping C e nte r in
Farm ington, C onn.
FUTURE REPORTING DA TES
Nordstrom s planne d financial re le ase cale ndar for the ne x t thre e m onths curre ntly include s:
April Sale s R e le ase Thurs., May 3, 2012

First Q uarte r Earnings R e le ase Thurs., May 10, 2012
May Sale s R e le ase Thurs., May 31, 2012

June Sale s R e le ase Thurs., July 5, 2012
A BOUT NORDSTROM
Nordstrom , Inc. is one of the nations le ading fashion spe cialty re taile rs. Founde d in 1901 as a
shoe store in Se attle , today Nordstrom ope rate s 226 store s in 30 state s, including 117 full-line
store s, 105 Nordstrom R ack s, two Je ffre y boutique s, one tre asure &bond store and one
cle arance store . Nordstrom also se rve s custom e rs through Nordstrom .com and through its
catalogs. Additionally, the C om pany ope rate s in the online private sale m ark e tplace through its
subsidiary Haute Look . Nordstrom , Inc.s com m on stock is publicly trade d on the NYSE unde r the
sym bol JW N.
phx.corporate-ir.net/phoenix.zhtml?c=93295&p=irol-newsArticle&ID=1680511&highlight= 1/2
04/06/2013 Nordstrom.com - Investor Relations - News Release
sym bol JW N.
Certain statements in this news release contain or may suggest forward-looking information (as
defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties,
including, but not limited to, anticipated store openings and trends in company operations. Such
statements are based upon the current beliefs and expectations of the companys management and are
subject to significant risks and uncertainties. Actual future results may differ materially from historical
results or current expectations depending upon factors including, but not limited to: the impact of
economic and market conditions and the resultant impact on consumer spending patterns; our ability to
respond to the business environment, fashion trends and consumer preferences, including changing
expectations of service and experience in stores and online; effective inventory management;
successful execution of our growth strategy, including possible expansion into new markets,
technological investments and acquisitions, including our ability to realize the anticipated benefits from
such acquisitions, and the timely completion of construction associated with newly planned stores,
relocations and remodels, which may be impacted by the financial health of third parties; our ability to
maintain relationships with our employees and to effectively attract, develop and retain our future
leaders; successful execution of our multi-channel strategy; our compliance with applicable banking and
related laws and regulations impacting our ability to extend credit to our customers; impact of the
current regulatory environment and financial system and health care reforms; the impact of any
systems failures, cybersecurity and/or security breaches, including any security breaches that result in
the theft, transfer or unauthorized disclosure of customer, employee or company information or our
compliance with information security and privacy laws and regulations in the event of such an incident;
our compliance with employment laws and regulations and other laws and regulations applicable to us;
availability and cost of credit; our ability to safeguard our brand and reputation; successful execution of
our information technology strategy; our ability to maintain our relationships with vendors; trends in
personal bankruptcies and bad debt write-offs; changes in interest rates; efficient and proper allocation
of our capital resources; weather conditions, natural disasters, health hazards or other market
disruptions, or the prospects of these events and the impact on consumer spending patterns;
disruptions in our supply chain; the geographic locations of our stores; the effectiveness of planned
advertising, marketing and promotional campaigns; our ability to control costs; and the timing and
amounts of share repurchases by the company, if any, or any share issuances by the company,
including issuances associated with option exercises or other matters. Our SEC reports, including our
Form 10-K for the fiscal year ended January 28, 2012, contain other information on these and other
factors that could affect our financial results and cause actual results to differ materially from any
forward-looking information we may provide. The company undertakes no obligation to update or revise
any forward-looking statements to reflect subsequent events, new information or future circumstances.
Source : Nordstrom , Inc.
Nordstrom , Inc.
INVESTOR CONTA CT:
Trina Schurm an, 206-233-6503
or
MEDIA CONTA CT:
C olin Johnson, 206-303-3036
Nordstrom Privacy Your Privacy R ights 2011 Nordstrom , Inc.
phx.corporate-ir.net/phoenix.zhtml?c=93295&p=irol-newsArticle&ID=1680511&highlight= 2/2
Appendix SH
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Figure 1 Nordstrom (Source: Google)

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Figure 1 Nordstrom (Source: Google) .......................................................................................................................... 0

Figure 2 Nordstrom At A Glance (Source: Adapted from Google)

This report develops a critical assessment of Nordstrom Inc. strategys implementations in

3. Dimensions of the industry development

1 According to Global Industry Analysts Inc.

Competitive Landscape Lens

. Each state across the

4. The Paradoxical Choices

4.1. THE PARADOX of Compliance versus Choice to the industry development

Figure 6 Omni-channel Retailers

Source: Kym Mcnicholas

4.2. THE PARADOX OF CONTROL VERSES CHAOS IN THE ORGANISATIONAL CONTEXT

Nordstroms approach to the compliance-choice dichotomy in achieving strategic competitive

Figure 7 - Holistic Communication Strategy across Omni-channels

Engagement B&C Customer-Centricity

Sales and Support People

Capture greater Value

Feedback Internal integrated culture

Want-Satisfying offering B&B Products

Source: Adapted from Hamza, 2013

Nordstroms management empowers its employees to do whatever is needed to satisfy or

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ICR Retail Takeaways; Managements Do Matter

Omnichannel-More than Retail Buzzword

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