Company Action: Nordstrom’s Strategic Actions Essay

Name
MGO 403, Summer 2021
Date
Paper 2: Company Action
Nordstrom’s strategic actions
In 2017, Nordstrom’s initiatives for 2018 also focused on opening the Nordstrom Men’s Store NYC in 2018, integrating digital and physical assets, and opening Nordstrom Rack stores in Canada (Nordstrom 18). In 2016 and 2017, the retailer focused on opening new stores and leveraging online business to remain competitive. The retailer also focused on being more accessible than its rivals. In 2017, the retailer proposed the Nordstrom Local concept where there are tiny outposts of the retailers selling a smaller selection of clothes and other products at the local level (Kapner). While Nordstrom still maintains full-line locations and traditional department stores the retailer explored the Nordstrom Local option.
Nordstrom expands into different markets at a time when many other retailers closed down their stores. The retailer has a wide selection of brand-name items, and the expansion strategy has made it easier to reach the target market by opening to closer where the people are. The retail chain strategy of opening new stores in North America is linked to the responses received from the public, and the need to attract more customers and boost sales of the company's products in the main market.
Nordstrom's strategy in the US and Canada are nonetheless, somewhat different but the expansion targets bringing its best brands and service to areas where the retailer operates. The same quality of products means product prices are comparable across stores and in the US and Canada. Nordstrom targeted opening stores within the best shopping centers and there was a focus on establishing a solid footprint and enhancing the customer trends and customer growth (Nordstrom 18).
Interpreting the strategic action
Nordstrom did not intend to change the business model, but rather continue with the model and reach out to the target customers to increase revenue. One of the issues they evaluated is what the changes would bring by getting the merchandise closer to them and by offering the customer more personalized services in the stores that were closer to them. Nordstrom targets middle-class consumers and offers high-quality apparel value and excellent customer service. The retailer adopted the corporate strategy move to open more stores at a time when other retailers were scaling down operations and trying to leverage online business opens. The strategy also targeted bringing its best brands and service to the new stores.
The Nordstrom Men’s Store NYC Nordstrom Local stores were not new lines of business, but they expanded operations. The expansion then would bring the business closer to the people even as there was growth in the e-commerce platform. Furthermore, the company has continued on the strategy of high-quality merchandise and excellent services to continue attracting the target consumers to the newly opened stores. Nordstrom did not build a revenue structure, but rather expanding the sources of revenue and increasing the merchandise profit. The retailer gained new customers and, which was one of the ways to achieve sales growth. Nordstrom generates revenue through the sale of clothing and ...