Retail Wars - Nordstrom’s SCA
On a playing ground that is increasingly being dominated by online players, what can brick and mortar stores offer their customers that online stores cannot? Nordstrom, who has always prided themselves as having exceptional customer service, has introduced a number of initiatives to shore up their strategic competitive advantage over other retailers:
Pricing - Without changing their positioning of a luxury retailer, Nordstrom has been introducing a plethora of in-house brands in order to bring down pricing of quality goods. While there have always been brands such as Brass Plum, a recent influx of new brands have been created in the last few years including the popular Caslon and 1901. Frequent shoppers swear to their quality and having brands that are exclusive to Nordstrom has the additional benefit of consumer stickiness. Will it work? Only time can tell, but Amazon certainly seems to think so since it’s following suit.
Exceptional Service - During a time, when other retailers are reducing the length of their return policies, Nordstrom holds steady. Not only do they not have deadlines, but unlike other stores they have not instituted any restrictions on what condition the item must be brought back by. This allows customers to buy with confidence.
Convenience - While many stores have curbside pickup, Nordstrom is one of the only ones with curbside delivery to your car. After ordering online, you will receive a text message with directions on where to park, and whom to contact when you are on your way. Their “Pickup in Store” option allows you to try the item in store before being charged for it via a changing room that is placed conveniently near the entrance.
Alternate Revenue Sources - Shoring up alternate revenue streams such as Nordstrom Rack and HauteLook. Currently there are more Nordstorm Racks than their full price counterparts, allowing the company to hedge their bets on both ends of luxury good sales.