Subject category:
Production and Operations Management
Published by:
International Institute for Management Development (IMD)
Version: 24.09.2013
Length: 15 pages
Data source: Published sources
Abstract
While Nordstrom's customer service was widely admired, the pace of change in retailing was accelerating and expectations around customer service were rising. Mobile shopping (or m-commerce) was quickly becoming the fastest growing space online. And the unparalleled access consumers had to information was tipping the balance of power in favor of customers. In response, Nordstrom had evolved into a multichannel retailer and was seeking ways to satisfy its customers' new definition of service. By 2012, Nordstrom had grown from one downtown Seattle shoe store to serving customers in 44 countries and 31 states. With a new record of USD11.8 billion in net sales in 2012 and gross profit margins averaging about 38.8%, Nordstrom's strategy seemed to be working. Online sales surpassed USD1 billion for the first time, with mobile devices accounting for more than 20% of Nordstrom's total online sales. This reinforced the importance of online retailing and the significant growth potential it offered. But would the company's culture of service be able to keep pace with its customers in the digital age?
Location:
Industry:
Size:
> 15,000 employees, approximately USD12 billion in net sales
Other setting(s):
2012
About
Abstract
While Nordstrom's customer service was widely admired, the pace of change in retailing was accelerating and expectations around customer service were rising. Mobile shopping (or m-commerce) was quickly becoming the fastest growing space online. And the unparalleled access consumers had to information was tipping the balance of power in favor of customers. In response, Nordstrom had evolved into a multichannel retailer and was seeking ways to satisfy its customers' new definition of service. By 2012, Nordstrom had grown from one downtown Seattle shoe store to serving customers in 44 countries and 31 states. With a new record of USD11.8 billion in net sales in 2012 and gross profit margins averaging about 38.8%, Nordstrom's strategy seemed to be working. Online sales surpassed USD1 billion for the first time, with mobile devices accounting for more than 20% of Nordstrom's total online sales. This reinforced the importance of online retailing and the significant growth potential it offered. But would the company's culture of service be able to keep pace with its customers in the digital age?
Settings
Location:
Industry:
Size:
> 15,000 employees, approximately USD12 billion in net sales
Other setting(s):
2012