Nordstrom has come a long way since its humble beginnings as a shoe retailer in the early
part of the 20th century. Now with the 4th generation of Nordstroms at the helm, it has
positioned itself for the future with its customer-centric focus and rich history of
entrepreneurial spirit. This analysis will focus on the transformation of their core
operations and the potential for future strategic movement in the world of retail sales.
Corporate strategic and organizational practices
From the early stages as a wholly owned family business, Nordstrom was characterized by
its ability to provide the highest quality and largest selection of products at very
competitive prices. One of the most distinctive corporate traits that helped guide the
second generation of Nordstrom salesmen was their passion for entrepreneurial thinking
and their immense dedication to providing outstanding customer service and repeat
customer satisfaction. Nordstrom constant focus on serving their customer needs instilled a
solid reputation across the retail environment for providing exceptional service that
differentiated them from the competition.
The corporate imperative to maintain a competitive pricing structure across all
merchandise categories and geographic regions was a key strategy that further deterred
regional department stores, who faced more complex pricing structures based on moving
large volumes of inventory, from directly competing with Nordstrom based on a particular
price point. Nordstrom also focused their buying strategies on providing more specialized,
private label clothing lines and fashion accessories with limited mainstream apparel that
was a stark contrast to the extensive mainstream clothing labels and product lines of their
