Nordstrom is considered to be outshining every luxury retail outlet in the US market. The company was founded in 1901 with a small shoe store evolving over centuries to become a high-end retail store. Back in the 1930s, Nordstrom’s evolved the company’s inheritance to make the brand a luxury retail outlet. Nordstrom has been selling just shoes to expanding its portfolio to clothing, bags, cosmetics, jewelry, and much more. ..
Nordstrom has also elevated the shopping experience by offering credit cards to customers to boost revenue by credit card offerings. It was a major tool for building customer loyalty toward the brand. The brand is considered to stand out in terms of customer experience which proves to have a competitive gain overall luxury retail stores.
Understanding Nordstrom and Its Competitive Advantage
Incredible customer service
Nordstrom has long been known for its exceptional customer service. This is due to the personalized service that is offered to buyers at the store. Nordstrom has topped customer service surveys numerous times, and this is likely due to the trust that employees have in their freedom and judgment. CEO Jamie Nordstrom often emphasizes the importance of customer service in the success of Nordstrom. ..
Nordstrom is a popular retailer with superior return policy. The company is known for its excellent customer service and success in the marketplace.
Massive Transition to Online Stores
Nordstrom offers a unique segment like credit cards to enhance sales, revenue, and store footfall. They offer a VISA credit card that can be only used at Nordstrom’s offline and online stores. This facility is exercised to encourage customers and enhance store traffic. It also acts as a reward program.
Diversified Portfolio
Nordstrom is a company that has been diversifying its portfolio and expanding the brand. Nordstrom has stood out from its competitors due to the strategies applied by the brand in regard to diversification. Nordstrom is ranked 1st in transitioning from retail outlet to e-commerce store. The brand also holds the policy of off-price subsidiaries leading to generating additional revenue.
Nordstrom has a variety of services that make shopping experience more personalized. For example, Nordstrom Local offers tailored services like alterations, pickups, returns, and more.
Targeting Young Customers
Nordstrom has been trying to convince millennials to shop more and buy more from the brand. Recently, they’ve made it easier for customers to buy products that are prominently featured on Instagram. This helps Nordstrom stay top of mind for future consumers.
Implementation of Porter’s Strategies
Nordstrom has effectively utilized the strategy of cost leadership through the annual sales events and Nordstrom Rack segment.
Nordstrom has employed a differentiation strategy through its Nordstrom Local segment by offering a personalized customer experience. This allows customers to shop for clothes and accessories in a more personal way, which can lead to better shopping experiences.
Nordstrom, like other luxury retailers, has been struggling due to the pandemics and closures of certain stores. Nordstrom has responded by implementing competitive gain strategies, such as increasing sales through its online store. This is an innovative approach that sets Nordstrom apart from other luxury retailers. ..
