Nordstrom SWOT Analysis 2022 – Nordstrom, Inc.

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Nordstrom SWOT Analysis Analyzes, In 1901, John W. Nordstrom used his stake from the Alaska gold rush to open a small shoe store in Seattle, Washington. Over the years, the Nordstrom family of employees built a thriving business on the principles of quality, value, selection and service. Today, Nordstrom is one of the nation’s leading fashion retailers, offering a wide variety of fine quality apparel, shoes and accessories for men, women and children at stores across the country. We remain committed to the simple idea our company was founded on, earning the trust of our customers, one at a time.

Did You Know?

While the department’s name is from John Nordstrom, he wasn’t keen on running a business offering shoes and was the only person to co-found the store with Carl Wallin because Carl Wallin had plenty of knowledge and experience in the industry.

Nordstrom, Inc. is a leading fashion retailer offering compelling clothing, shoes and accessories for men, women and kids. Since 1901, we’ve been committed to providing our customers with the best possible service—and to improving it every day.

This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Nordstrom.

Nordstrom At A Glance – Nordstrom  SWOT Analysis

Company: Nordstrom, Inc.
Founders: Erik Nordstrom | Pete Nordstrom
Year of establishment: 1901 (as Wallin & Nordstrom) 1971 (Nordstrom Inc.)
CEO: Erik B. Nordstrom
Headquarters: Seattle, Washington
Employees (Dec 2020): 74,000
Ticker Symbol: JWN
Type: Public
Annual Revenue (Dec 2020): US$15.9 Billion
Profit net income (Dec 2020): US$564 Million

Products & Services: Shoes | Clothing | Accessories | Home Goods | Gifts | Jewelry | Beauty | Restaurant | Espresso Bar | Home Furnishings | Design | Spa | Stylist | Alternation & Tailoring | Nordy Club

Company Website: www.nordstrom.com

Top Nordstrom Competitors 

Competitors: JC Penny | Macy’s | Ross Stores Inc. | Kohl’s | Neiman Marcus | TJ Maxx | Saks | Bloomingdale | Darlington | Dillard’s | Hudson Bay | Home Retail Group | Mercuries & Associates | Amazon

Nordstrom SWOT Analysis – SWOT Analysis Of Nordstrom

SWOT Analysis Of Nordstrom analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Nordstrom SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Nordstrom SWOT Analysis. Below Is The Detailed SWOT Analysis Of Nordstrom.

Nordstrom Strengths – Nordstrom SWOT Analysis

1. Differentiated Portfolio: Its range comprises Nordstrom Rack (discount stores), Haute Look, Trunk Club ( subscription box service) along with Bevy Up, allowing the company to meet the essential shopping needs for their clients in the current digital age.

2. Unique Brands, Luxury Designer Merchandise and Exclusive Designs: From clothing to shoes bags, handbags, and accessories, Nordstrom has positioned to be a luxury department store that offers luxury merchandise and brand names that are considered to be premium.

3. Strong Strategic Partnership: Nordstrom has distinguished itself from the competition by partnering small, but strategically-oriented brands like Top Shop, All birds, Greats, Reformation, Stella, Dot, and Glossier that are digitally native and direct to consumers. The majority of consumers visit Nordstrom for these brands which boost sales 30 percent faster than other brands.

4. Strong growth and financial position: While other department stores are struggling with continual sales decreases and a weak financial position, Nordstrom’s is robust with an estimated 15.9 billion in revenues (2019) and is growing at a steady pace thanks to the efficiency of its rack-stores, e-commerce stores as well as pop-up stores, anniversary sales and special promotions.

5. Outstanding Customer Service Personalized VIP service for customers is among Nordstrom’s strengths. Sales associates greet customers when they arrive at the store and assist them in locating and selecting the various products they are looking for.

6. Excellent Return Policy: Nordstrom offers an excellent (no need to ask questions) returns policy which helps customers be more confident about making a purchase.

7. An innovator in Customer Service: Nordstrom was among the first department stores in the US to embrace and utilize technology to improve the ultimate customer experience. For a better Omni-experience, it has opened a modern NYC flagship store that lets customers to try on clothes online and use a Trunk Club to personalize clothes before placing orders in-store or on the internet.

8. competitive fulfillment options: Nordstrom offers free shipping on all orders, with no minimum purchase limit. In contrast, Nordstrom competitors, for instance, Macy’s has $75, and C. Penney has a minimum order requirement to qualify for complimentary shipping. With the increasing amount of shoppers shopping online and customers, shipping is free. This gives Nordstrom an competitive advantage.

9. High Ecommerce Penetration: Sales at department stores, Nordstrom ranks second E-commerce sales, only being beaten by Neiman Marcus. At present, $4.7 Billion (30 percent of the overall $15.9 billion revenue) is derived from online sales.

10. A successful BOPIS strategy: Nordstrom offers customers the option to buy online, then shop at the store (BOPIS). It’s not only one of the most profitable option for the company , but it also meets the ever-growing desire for convenience.

11. Nordy Club Membership Program: Nordstrom’s loyalty and reward program has grown. Through the program, customers are able to earn points, enjoy exclusive discounts, and get individualized services. The program is home to more than 13 million users (2019). They contributed around 2/3 of the revenue. Nordstrom may make a lock-in for its customers.

12. Solid Corporate Responsibility: Nordstrom helps the local communities in which it conducts business by giving thousands of dollars hundreds of non-profit organizations across the U.S., Canada, and Puerto Rico. In addition to giving to Good Foundation, Nordstrom pledged $5 million in community and investment grants in New York City by the close of 2020.

Nordstrom Weaknesses – Nordstrom SWOT Analysis 

1. Highly Expensive Products: Nordstrom has nurtured its image as a luxury store and sells designer brands that are top of the line. The cost-intensive nature for its merchandise entice low and middle income earners to competitions such as TJ Maxx.

2. Limited Global Reach: Nordstrom has only locations within the US as well as Canada, which effectively restricts its operations only to North as well as Central America. Any modifications to the economic conditions in these regions could be devastating for the financial viability and long-term viability of the company.

3. The lack of diversification: Nordstrom is a major player in luxury apparel shoes, accessories, and footwear and is thus exposed to the possibility of massive losses due to the fact that it has put all its eggs into only one basket.’

4. High-risk and expensive investments: Nordstrom invested over $500 million in its brand new seven-story super tall store, which is its flagship Manhattan shop. In this day and age of online shopping the number of customers who visit retail stores is decreasing. Building a high-end brick and mortar shop could be risky. In the event that the Manhattan store is unsuccessful in the end, more than half billion will be lost.

5. Brand dilution: Nordstrom is continuing to grow the number of discounted discount retail stores i.e. Nordstrom rack Last Chance Clearance, Nordstromrack.com. In 2019, the company had 249 off-price stores Full-line stores totaling 132 (Nordstrom, Nordstrom.com, Trunk Club). This tactic exposes Nordstrom to branding loss.

Nordstrom Opportunities – Nordstrom SWOT Analysis

1. Exploit E-commerce: More and more customers are purchasing online. Nordstrom could focus on expanding its online shopping platforms and boost the number of sales made online.

2. Attract younger customers: Nordstrom has the possibility of expanding its customer base by implementing strategies that target younger customers by leveraging iconic brands. According to Nordstrom the average age of purchase of 42 is and its young customers (18 to 34 years old) comprise only around 36 percent of the customer base.

3. Expand in Emerging Markets: Tapping into emerging markets within Asia as well as Latin America will provide Nordstrom an opportunity to benefit from the increasing demand for high-end products across the globe. This will also aid with expanding its market share in that US market.

4. Growth through Acquisition: The majority small department stores struggle to compete with the retail market. Nordstrom has the potential to leverage its massive financial resources to purchase smaller stores, which have the potential for growth in a short time.

5. Diversify Portfolio: Nordstrom’s services and products are limited to footwear, clothing and accessories. It is able to diversify its offerings to include products from different categories like sportswear ( Nike, Adidas) and interior decor.

Nordstrom Threats – Nordstrom SWOT Analysis

1. Retail Apocalypse: Euromonitor data show that sales at department stores have been experiencing a string of declining sales for the last five years. Department store sales decreased by 4.8 percent during the beginning of the year, as per the department of commerce. If the retail apocalypse continues over the next few months, Nordstrom can lose not only its profit margins and viability but also its very existence.

2. Strong competition: Neiman Marcus, Bloomingdales, Saks fifth avenue, Macy’s, JC Penney, TJ Maxx, Kohl and a host of other competitions have been giving Nordstrom an opportunity to compete for the money. With the increase in competition, Nordstrom can lose a large portion from its clients.

3. E-commerce giant – Amazon: Many of the premium brands, that were only available through high-end retailers are now through Amazon. This could pose a threat luxurious stores that are high-end such as Nordstrom.

4. Rental Clothing Subscription & Resale of Luxury Items: There are several new categories of competition on the market.

  • Rent-a-Round subscription like renting runways
  • Social marketplace online for high-end products like the Thread up marketplace, Posh mark as well as others.

5.  Counterfeit products: As the accessibility and quality of counterfeit goods are rising and increasing, this could be a significant danger for Nordstrom’s top-quality products. As per the United States Government Accountability Office report approximately $1.38 Million counterfeit merchandise was confiscated in 2016 by Custom and Border Protection in the year 2016.

6. Economic Recession: Some experts argue that current economic stability is the “calm before the storm,” due to the decrease in the Consumer Confidence Index over the last three years. This is a negative signal for Nordstrom since its high-priced premium products will be one of the first non-essential expenditures which will need to be cut or discarded or substituted with less expensive alternatives during more tense times.

7. Corona Outbreak of Corona: The outbreak is already affecting global stability and economic growth by disrupting the transportation, supply chain and shopping.

Nordstrom SWOT Analysis Template

NordStrom SWOT Analysis Overview Template

This is the SWOT report that Nordstrom has done. Please let us know if you have additional suggestions to add.


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