How Nordstrom is Evolving for Today's Consumer
Upscale department store chain Nordstrom opened its doors 111 years ago with one goal: improve the customer experience in any way possible. A lot has changed for the company in the last 111 years, but that singular focus has remained. Jamie Nordstrom, president of Nordstrom Direct, detailed how the company is putting this philosophy into practice in his keynote address at the Shop.org Annual Summit in Denver yesterday.
People are the cornerstone of the Nordstrom brand, Jamie Nordstrom said. The retailer operates with a culture of empowerment where there aren't a lot of rules. Store associates are given the freedom to handle issues as they see fit, the only rule being that they must use good judgment.
Growth Opportunities for Nordstrom
E-commerce will account for the majority of future growth for Nordstrom, Jamie Nordstrom said. The retailer is already seeing that trend this year, with online sales up 40 percent year to date. That said, Nordstrom isn't giving its brick-and-mortar stores a free pass. "Don't cede productivity in-store just because your online sales/profits are growing," said Jamie Nordstrom. "That's not acceptable."
New markets are another area where Nordstrom is counting on future growth. Jamie Nordstrom cited the upcoming opening of the brand's flagship store in Manhattan, the first in the borough, as well as a possible entry into Canada as proof of that. Nordstrom also continues to open its full-line stores in new markets across the country, and has doubled the number of its Rack outlet stores in the last four years (with plans again to double that store count in the next four years).
Mobile, and in particular apps, is a channel that Nordstrom has invested its time and money, Jamie Nordstrom said. That effort is paying off, as the retailer continues to see its percentage of total sales coming from mobile devices grow.