Question: Case Study #1: Client Goal: Our client is Nordstrom, Inc. They have asked for our services to evaluate their communication plans as they close their
Case Study #1: Client Goal: Our client is Nordstrom, Inc. They have asked for our services to evaluate their communication plans as they close their Canadian stores. Background Information: Brick-and-mortar stores have struggled to maintain profit-margins and relevance since the proliferation and popularity of online shopping avenues. While many stores had been struggling for well north of a decade, the retail apocalypse of 2017-2020, spurred by COVID-19 travel restrictions, signaled the death knell for many retailers. Still, some retail stores survived. However, rising interest rates, inflation, and a looming recession signal another potential wave of major department store closures. Situation Description: Nordstrom, Inc. is a Seattle-based clothing retailer that focuses on mid-level luxury items. They also operate a budget-minded affiliate store, Nordstrom Rack. Nordstrom, Inc. has recently decided to close all stores in Canada. As a result, 2,500 employees will be laid off. The companys reason for closing the stores is that they did not see a realistic path to profitability. The closure of the 13 stores both Nordstrom and Nordstrom Rack accounts for 3% of total business or roughly $400 million. Profits were already below expectations for the year, as well as for the holiday season. They currently offer the following services: - Online ordering + returns - Easy Ordering/Pick-up - In-store product consultants - Online styling help - Fast Alterations - Gift Wrapping Nordstrom has continued to add, remove, and modify its services to fit continually changing shopping trends. With the closures in Canada, they now have the opportunity to allocate resources to a new endeavor in the United States. Firm Study: In the wake of these closures, Nordstrom hopes mitigate losses from their Canadian businesses and to re-focus their business strategy on existing stores in the United States. Specifically, they are look for ways to solve their inventory and supply-chain issues.
Question 1: What are some factors Nordstrom Executives might consider to increase in-store and online sales within the first 6 months of 2023?
Question 2: Imagine you are customer, what are some services that Nordstrom could offer to compete with online retailers?
Do you have any ideas for the questions or any other questions to look further into?
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