During Nordstrom’s annual Investor Day event, shareholders and analysts explained how the Seattle-based retail chain has become the go-to choice for direct-to-consumer brands.
Nordstrom has undoubtedly set itself apart from other department stores. For one, its in-store customer service is just about unbeatable. For another, Nordstrom is constantly working to give customers the easiest and most beneficial shopping experience, whether it be online or in-store. Nordstrom provides stylists for just about everything, from personal stylists, to beauty stylists, to wedding stylists. Alterations and tailoring are also offered.
Nordstrom recently introduced Style Boards, which suggest style advice anywhere at any time. Style Boards are a convenient and personalized way of shopping, in which online personal stylists handpick recommendations for each customer, then send them to the customer’s mobile phone.
Another defining feature of Nordstrom is the fact that its store footprint isn’t so excessive. Several department chains have been forced to shut down stores, because there are just too many.
In addition to its department store, Nordstrom’s Haute Look and Nordstrom Rack are diversifying the brand and allowing it to reach a wider audience. Nordstrom’s Trunk Club provides personal stylists for both men and women. Using technology, stylists learn details about each customer to help them build their best wardrobe.
Nordstrom’s Co-President, Erik Nordstrom, revealed that Nordstrom has become a partner of choice for popular and affordable brands that distribute through few or no other retailers. Some of these brands include Madewell, Topshop, Allbirds, and most recently, Los Angeles-based Reformation.
Strategic brands like these now represent 40 percent of Nordstrom’s overall full-price revenue. One of the reasons this tactic is working is because these brands are often not easily accessible to many customers. Topshop and Madewell stores can be rare to come across, so making them available in a department store like Nordstrom works both ways.
So why exactly is Nordstrom the partner of choice? Erik Nordstrom credited the brand’s number of locations as a drawing factor. He suggested, “Brands don’t need 800 locations, but they need more than 20.” With 122 stores, Nordstrom is a great option. Another attractive feature of Nordstrom’s is the fact that it isn’t very price-promotional. This is a benefit for strategic brands because it means their products won’t often be discounted.
Nordstrom has proved that it’s possible to reach all kinds of audiences. For now, it seems the brand is unstoppable.
Featured image via Flickr/GoToVan