Nordstrom Introduction

In: Business and Management

Submitted By mn1989
Words 396
Pages 2
Every retail company has different strategies for keeping customers in their stores. Every retail company also has different inventory management systems. While some retails decrease their prices on some of its already lowest price items, Nordstrom decided to focus on both by having a better inventory management system and better shopping experience for its customers. This is transition was no surprise; given the company’s legendary customer service and extremely flexible return policy. Nordstrom's new inventory management system, allow customers to see every item a Nordstrom store and/or warehouse from the company's website. By providing a second-to-none customer service while integrating its inventory to its customers, Nordstrom has simplified and enhanced the shopping experience. This paper seeks to provide an understanding of Nordstrom’s integrated inventory management system while exposing the competitive nature of the retail industry by comparing/contrasting various retailer’s strategy to Nordstrom.
The paper seeks to describe the inventory management by analyzing the retail industry, the hierarchical socio-economics of consumers and income, and generic and competitive strategies. In the last few years, Nordstrom's same-store sales have increased by 8%, higher than the department store average. Furthermore, the company's inventory turnover rate is 5.41, an increase from 4.48 in 2005. The new integrated system puts Nordstrom in a great position moving forward as the economy continues to rebound while upper income consumers continue to spend.
The paper also seeks to describe the new integrated inventory management system. This system has allowed Nordstrom to outperform its competitors such as Bloomingdales and Saks Fifth Avenue and obtained a competitive advantage even through the downturn of the economy. Customers can see what is in stock based on each…...

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