Marketing Nordstrom in Canada: Customers First

Based in Seattle, the upscale fashion specialty store Nordstrom sums up its marketing purpose this way:

Since 1901, we've been committed to providing our customers with the best possible service—and to improving it every day. 

Nordstrom has three full-service locations in Canada and three more on the way. First to open will be the new store at Toronto Eaton Centre in September, followed by the new store in Yorkdale Shopping Centre.

At left, one of the ads paving the way for these full-service store openings. You First is the message, reinforcing Nordstrom's marketing positioning and a key point of differentiation.

Nordstrom has a well-deserved reputation for service--which will help it compete in the increasingly crowded Canadian retail market. The company is also opening additional Nordstrom Rack stores with off-price/discount merchandise, adding to its strength in relatively affordable fashion.

Nordstrom's Legendary Customer Service

The most recent American Customer Satisfaction Index survey of retail satisfaction put Nordstrom's at the very top of US store retailers. In fact, the department store's score went up even as other retailers' scores went down. It's not hard to understand why people love Nordstrom's.

The department store has long been known for personalized service with a smile and style, winning long-term customer loyalty. It's also one of the most admired businesses in America.

Customers can return stuff with no questions asked. Sales professionals know what regular customers want and like--and they're proactive about contacting customers when new merchandise or promotions are in the offing.

E-commerce is a Nordstrom's priority, with big investments this year for multichannel marketing. And when mobile or online customers want to chat with customer service, Nordstrom's has various specialists standing by to chat, live, with just a click.

Social media savvy? Of course: 3 million Facebook likes, 563k Twitter followers (not counting followers of its multiple accounts), and 4.4 million Pinterest followers--a must for fashionistas.

Macy's Eyes Off-Price Opportunity

Off-price retailing is nothing new--Loehmann's, Hit or Miss, Marshall's all were in the business decades ago. Of course Marshall's is still going strong, now part of the booming TJX off-price empire that includes Home Goods and T.J. Maxx.

In recent years, Nordstrom and Saks Fifth Avenue have enjoyed considerable success with their Nordstrom Rack and Saks Off Fifth off-price stores, located in outlet malls and in lifestyle shopping centers. (Saks Off Fifth began as a chain of clearance stores for Saks merchandise and evolved into off-price over time.)

Now Macy's sees significant revenue opportunity in entering the off-price retail space. Its Bloomingdale's department store division has 13 off-price outlet stores, so Macy's has experience in the sector and can evaluate investment vs. profit potential.

Macy's has announced it will shutter 14 of its full-price department stores and open 2 new ones in 2015, as consumer behavior shifts toward online shopping and pursuit of value (meaning lower prices for quality merchandise). The company's possible off-price venture is in the very early planning stages.

Macy's has been an enthusiastic proponent of multichannel marketing. It's also highly social and mobile, with well over 14 million FB likes and 720,000 Twitter followers, plus participation in Apple Pay, among other mobile activities.

Holiday Retailing 2013: The Year of the Pins

Pinterest is front and center for many retailers during this holiday shopping season, leveraging the power of social media to showcase products that are popular "pins."

Above, Target's Pinterest board (via New York Times), showing "Pins You Love" at top left, and other products by category (sweets, fashion, food, gifts, etc.). Target's CEO explains that Pinterest is "where the customer is" and therefore, “We ultimately concluded that if that’s the way the guest is going to live and shop, then we want to be a showroom. And we love showrooming — provided we can capture that sale.”

Zappos is one of a growing number of retailers partnering with Pinterest to showcase the most popular of their pins drawn from Pinterest every day. Nordstrom (which has more than 4.4 million Pinterest followers) is promoting products in its stores that are the most popular on its Pinterest board.

Happy pinning!

Nordstrom and the Big Apple

Almost a year ago, Nordstrom opened an unusual store in New York City's trendy SoHo district. Called Treasure & Bond, the store donates all profits to children's charities. And as if that's not unusual enough, consider that Nordstrom didn't put its brand on this first New York City store. Why?

“It allows us to be way more nimble and to learn,” explained Peter Nordstrom, EVP of the department store chain. “If we opened something like this, and had it be Nordstrom in some way, it would end up disappointing — people would show up and say, ‘What’s this?’”

Just a year earlier, Nordstrom had opened a Nordstrom Rack outlet in Union Square, bringing its stylish off-price retail store to one of New York's busy shopping districts.
 
Nordstrom has spent the past couple of years analyzing shopper behavior in the Rack and the Treasure & Bond stores while negotiating for a full-size store in Manhattan. Finally, it has found the right location: On 57th Street, near Seventh Avenue, a shopping hot-spot for luxe brands. The grand opening is scheduled for . . . 2018, as soon as the residential skyscraper is built and Nordstrom can decorate the main level in its own way.