In reading the article \u201cNordstrom Innovates Retail\u201d, Nordstrom recently opened the first prototype of a new store concept \u201cNordstrom Local\u201d in Los Angeles, California.\u00a0 The \u201cNordstrom Local\u201d store is incredibly unique, as it carries no merchandise inventory for consumers to purchase. Instead, the new store offers a variety of services to customers, including curbside pickup for those who have bought online.<\/p>\n
\u201cNordstrom Local\u201d provides a link between buying online and in-person attention from Nordstrom stylists.\u00a0 Because the store has no dedicated inventory, customers can shop at the company\u2019s website and pick up the purchases on the same day when placed before 2 pm.\u00a0 Talk about convenience and easy pick-up for Nordstrom customers!\u00a0 In addition, these personal stylists find the merchandise for customers across the Nordstrom chain and have it shipped for customers to try on in the new stores.<\/p>\n
Nordstrom\u2019s senior vice president of customer experience, Shea Jensen, stated in regards to the opening of this prototype, \u201cWe know there are more and more demands on a customer\u2019s time and we want to offer our best services in a convenient location to meet their shopping needs\u201d.\u00a0 It seems to me that Nordstrom is trying to better target to their retail customer\u2019s order winners that are \u201cgreat service, speed, and convenience\u201d.\u00a0 The target customer base for these stores are frequent Nordstrom\u2019s customers looking for an \u201cintimate setting offering a full array of services that are available\u201d.\u00a0 \u201cNordstrom Local\u201d is a practical solution to consumer\u2019s time restraints, as the store is close to the Nordstrom customers and allows for quick pick up of items over the internet.<\/p>\n
In regards to inventory flow, fashion merchandise will mainly come from a Nordstrom mother store (a Nordstrom located relatively close to the \u201cNordstrom Local\u201d location).\u00a0 Because these two locations are somewhat close, shipping and transportation costs would be reduced. Instead of these items being shipped from Nordstrom store locations all over the country, merchandise is transported quickly from the mother store to \u201cNordstrom Local\u201d and costs are reduced for the company.<\/p>\n
Nordstrom is also trying to better the company\u2019s inventory management (the planning and controlling of inventories to meet the competitive priorities of the business) and overall customer experience.\u00a0 As previously stated, customer\u2019s retail expectations are evolving and Nordstrom is emphasizing speed as a competitive priority.\u00a0 With this change in competitive priorities for the company, Nordstrom has aimed to change how they plan and control their merchandise.\u00a0 Having no inventory at these stores streamlines the process, as there will be fewer waits and returns for customers.\u00a0 With fewer waits and returns, Nordstrom customers will have a better experience, as these pains are reduced.\u00a0 When the customer experience is improved, Nordstrom is provided with better and higher quality information in regards to customer preferences.\u00a0 This information allows the company to have a better inventory supply of merchandise for customers, aiding in more effective inventory planning.\u00a0 In conclusion, the \u201cNordstrom Local\u201d store is now able to have improved processes and smarter inventory, allowing the company to be even more prosperous.<\/p>\n
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Do you think Nordstrom\u2019s new venture with \u201cNordstrom Local\u201d stores having no inventory on hand will be successful?\u00a0 How does this expansion relate to other class topics we have discussed?<\/p>\n
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https:\/\/www.forbes.com\/sites\/walterloeb\/2017\/10\/10\/nordstrom-innovates-retail-a-new-store-with-only-services-and-no-inventory\/#62992bc149ef<\/a><\/p>\n