Nordstrom Department and Shoe Stores

James Nordstrom and Carl Wallin opened their first Wallin & Nordstrom shoe store in downtown Seattle in 1901. Today, Nordstrom has evolved into a retailing powerhouse with $6 billion in annual sales. the company operates department stores, Nordstrom Rack discount stores, and Faconnable boutiques, as well as two freestanding shoe stores and one clearance store. Although Nordstrom has clearly changed with the times, its core values toward employees and customers remain the same: treat them with respect and empower them.

Nordstrom is committed to a decentralized management style at a time when competitors such as Federated and May are trying to reduce costs and increase bargaining power with their suppliers by centralizing those retailers' staffs. Decisions as to where new stores should be located are largely made by the general managers of Nordstrom's eight regional groups, not executives in the Seattle headquarters. Nordstrom also has 1,000 buyers who make decisions based on specific needs in their markets. As part of the firm's commitment to expansion in Georgia, Texas, and Florida, it recently created a new operating division for the stores there. The division includes a regional buying office, which orders appropriate colors, sizes, and fabric weights for this market.

Nordstrom is considered a model of customer for the industry and one that competitors often benchmark. As its Web site says: "We remain committed to the simple idea our company was founded on, earning the trust of our customers, one at a time." The firm's strategy is enhanced by its empowering employees to take care of any reasonable customer requests. Source: Retail Management, page 268

shoe store: toko sepatu

annual sales: penjualan tahunan

treat them with respect: perlakukan mereka dengan hormat

increase bargaining power: meningkatkan daya tawar

headquarters: kantor pusat, markas besar

earning the trust of our customers: meraih kepercayaan para customer kami