The Beginning Nordstrom is a common household name that many associate top brands and apparel to
Nordstrom is a common household name that many associate top brands and apparel to. Nordstrom’s wide selections of clothing, shoes, handbags, jewelry, etc., is one of the many reasons it’s well versed in the retail store community. The small business was founded by no other than John W. Nordstrom, himself. Nordstrom was only sixteen years old and had five dollars to his name when he left Sweden, in 1887 to come the United States (Nordstrom). Fourteen years later he’d meet a shoemaker named Carl F. Wallin in Alaska, who offered Nordstrom a partnership in a potential shoe store. “In 1901, they opened their first store, Wallin & Nordstrom, on Fourth and Pike in Seattle” (Nordstrom). The shoe store soon became a huge success, by opening up an additional eight locations in Washington and Oregon. Their increasing successes lead them to invest in women’s clothing in 1963, and then in men and children’s clothing in 1966 under the new company name Nordstrom (Nordstrom). In the early 2000’s, as a way for Nordstrom to keep up with demanding market trends, they created an online website that would allow customers to buy and ship their products from their stores. Along with staying on top of trends, Nordstrom made a few collaborations with other top fashion brands, allowing them to broaden their item selections. The company has also had their fair share of charitable contributions with the start of their new brand called Treasure & Bond (Nordstrom). In 2014, they declared they would give a certain percentage of their earnings to organizations that were focused on empowering the youth. Nordstrom, today, continues to be a growing, leading retail company that strives to meet the needs of its customers and demands.
Nordstrom’s Market Analysis
“Nordstrom is one of the best investments in retail” (business insider). The company has come a very long way from its small shoe store in Seattle. According to Investopedia for Nordstrom, their sales have shown some small, but effective growth over the last four years. As you can see from the chart below, the gradual increases in sales from the year 2014 to 2018. Sales have been
doing well because Nordstrom prides them-selves on accommodating their customer’s needs. “Throughout their history, they have consistently provided some of the best service in the industry,” says Robin Lewis, CEO of The Robin Report (business insider). ?
Social Media Presence
In today’s society, we are so technologically driven that it’s important for a business to be able to balance well with their in-store presence as well as online. Nordstrom has done a really great job at keeping up with today’s trends by creating a strong foot in the online world. They have made a shopping website that has provided all their merchandise they have in-stores, now accessible online. They even created an app that makes buying and viewing their items easier and faster. Not only has their app and online stores done well with contributing to sales growth, but also with their social media presence. “Nordstrom recently made it possible to instantly buy the items featured on Instagram” (Business insider). All one has to do is scroll through an array of photos of the items up for sale, tap what he or she likes, and then it directs you straight to Nordstrom’s online store where they can process their desired purchases. According to the chart to the left, titled “Media Types” shows that most of Nordstrom’s online viewers come from Twitter at 58.3%; Instagram coming in second at 22.4%; and Blogs, third, with 8.1% (Ted walker). The importance of such outlets like Twitter, Instagram, Pinterest, blogs, etc., especially to Nordstrom, is so they have a way to generate a strong relationship with their customers and the company itself.
SWOT analysis is a very useful technique for any business to understand what they may be doing right, where they could improve on, opportunities at hand, and any threats or obstacles that might harm such businesses. First off, Nordstrom in specific has many quality strengths that have helped the company progress over the years. The company strives to be well diverse within it’s employment and customer outreach. “Since starting its diversity affairs division in 1988, the retailer now boasts a workforce that employs 40.5% people of color (up from 16% in 1988)” (Knowledge Wharton).