Nordstrom Executive Summary

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Nordstrom gained the ability to sell at normal pricing and avoid markdowns and also get rid of last season inventory. This also avoids the risk of error with cash handling. The process of shipping products from every store does add to the cost, but it is a simple task and shows or shirts are not bulky or fragile. On top of this, we should remember that most times that the products that they ship are stuffs you need to get out of the store as its most likely late in the season, which explains its non-availability in the warehouse, This shipping actually avoids the loss of sale. This explains the power of pooling inventory. To make check out process quicker and reduce valuable real estate space Nordstrom is becoming completely mobile. Nordstrom carries out product pricing matching…show more content…
Nordstrom has evolved and adapt to focus on improving customer experience. Revenue Generation: Nordstrom performance for the year 2013. An increase of 30% in Nordstrom direct same-store sales was recorded. The online business has a contribution of 13% of total revenue. $12.2 billion, in total company sales, And a 13.6% return on invested Capital (roic) 38% of total company sales came from e-commerce and the rack. 2013 has been a remarkable journey for the company ,with sales and cash flow both on high node due to operation. One billion cash flow was generated during this fiscal year. Company maintained the operating discipline, for the inventory and expenses , as result was reflected as a progress in growth in across all channels. Company believes that both the platform in store and online , where customer can experience full price & off price provides great value. Technology & e commerce has helped in achieving such channels for the customer. This is certainly helping the company to increase its market share. Store sales has increase to approx 30 % , proving it to be the fastest growing

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