Who Are Nordstrom's (JWN) Main Competitors?
Nordstrom (JWN) is a high-end retail sales department store offering fashion, shoes, and accessories for men, women, and children. A smaller portion of Nordstrom's revenue is generated by the use of Nordstrom-branded VISA credit cards. The retailer brings these two business segments together by building customer loyalty and increasing revenue with credit card offerings.
Nordstrom has notable competitors in the retail industry that offer high fashion in a similar department store format. Other retailers specializing in high-end fashion include Macy's (M), Dillard's (DDS), Neiman Marcus, and Saks.
Key Takeaways
- Nordstrom (JWN) is a high-end retail sales department store.
- Nordstrom has notable competitors in the retail industry that offer high fashion in a similar department store format, like Macy's (M), Dillard's (DDS), Neiman Marcus, and Saks.
- Nordstrom ranked as the consumer fashion retail industry leader in customer service quality, which proves to be a competitive advantage for Nordstrom.
Understanding Nordstrom (JWN) and Their Main Competitors
High-Quality Customer Service
Ranking highly in popularity surveys among fashion-focused consumers, Nordstrom is known by many customers for high-quality customer service. Many competitors have adopted a stronger emphasis on personalized service after seeing the results Nordstrom achieved by consistently applying service as a growth strategy.
Venturing into new technology and applying this new technology in customer-centric ways presents an ongoing challenge and opportunity for Nordstrom and other high-end department stores.
Since 1995, Nordstrom continually ranks highly in customer service surveys. In virtually every year of the American Consumer Satisfaction Index, Nordstrom ranked as the consumer fashion retail industry leader in service quality. Applying this customer service knowledge to technology proves to provide retailers such as Nordstrom with a competitive advantage.
Retail's Shift to Online Stores
As retail sales shift to online stores, retailers that are attentive to their online shopping segments benefit the most. Nordstrom continues to focus on improving customer experiences online to increase sales, obtain new customers, and retain existing customers.
Growth in online fashion retail increasingly brings opportunities for Nordstrom and competitor retailers. Nordstrom plans to continue investing heavily in online technologies and order fulfillment. Many competitors are also investing in this area and seeing significant results. Improving store inventory systems to function seamlessly with online retailing has improved sales for Nordstrom and provided a competitive advantage over Macy's and Saks.
While a distinct segment of Nordstrom, Nordstrom credit cards are used by the company to support retail sales and build store traffic, the luxury retailer operates a national banking segment offering Nordstrom VISA cards, a VISA debit card and a private label card that can only be used in Nordstrom stores, Nordstrom Rack stores or online at Nordstrom's website.
Nordstrom's primary competitors are in the retail segment, although any merchant that uses VISA accepts Nordstrom VISA cards, and so Nordstrom VISA cards compete directly with other VISA card brands. This segment of Nordstrom includes a rewards program designed to encourage shopper loyalty and bring Nordstrom cardholders into the store.
Shoppers with a rewards membership may receive other benefits when shopping in the store, such as free alterations to clothing purchases.
FAQs
Should you be buying Nordstrom stock or one of its competitors? The main competitors of Nordstrom include Dillard's (DDS), Macy's (M), Kohl's (KSS), GAP (GPS), Abercrombie & Fitch (ANF), Urban Outfitters (URBN), American Eagle Outfitters (AEO), Buckle (BKE), Lands' End (LE), and Destination XL Group (DXLG).
Who are Nordstrom's biggest competitors? ›
Nordstrom has notable competitors in the retail industry that offer high fashion in a similar department store format, like Macy's (M), Dillard's (DDS), Neiman Marcus, and Saks.
What is Nordstrom's competitive advantage? ›
Understanding Competitive Advantage
Competitive advantage refers to the unique qualities, strategies, or resources that set a company apart from its competitors and contribute to its success. Nordstrom's competitive advantage lies in its exceptional customer service and personalized shopping experience.
What does JWN stand for Nordstrom? ›
Nordstrom, Inc. common stock is traded on The New York Stock Exchange under the symbol JWN (JWN represents the initials of the company's founder, John W. Nordstrom.)
Who is Nordstrom's target customer? ›
What is Nordstrom's target demographic? Nordstrom primarily targets customers aged 25-54 with an average household income of over $100,000. They are also focusing on attracting millennials to boost long-term revenues.
What are the weaknesses of Nordstrom? ›
Weaknesses 1. high operating costs due to premium store locations and investments in customer service. 2. Exposure to changes in consumer spending habits and trends.
What are Nordstrom's three strategic pillars? ›
Nordstrom's customer strategy is centered on three strategic pillars: providing a compelling product offering, delivering outstanding services and experiences and leveraging the strength of the Nordstrom brand.
What makes Nordstrom special? ›
Consider its high-touch service, its spacious look and feel, top quality products, and personalized customer service, both on- and offline.
What is the future of Nordstrom? ›
Retailer Nordstrom is looking to capitalize on growing demand for its discount Rack store concept by opening 22 locations this year, a slight bump from last year. The Seattle-based chain opened 11 Rack stores in the fourth quarter of 2023 for an annual total of 19 in the format that executives called “a growth engine."
What is Nordstrom's brand strategy? ›
What is Nordstrom's market strategy? Everything we do starts with the customer – our market strategy is no different. At its core, this strategy helps us engage with customers through better services and greater access to products no matter how they choose to shop.
The ownership structure of Nordstrom (JWN) stock is a mix of institutional, retail and individual investors. Approximately 30.65% of the company's stock is owned by Institutional Investors, 43.13% is owned by Insiders and 26.22% is owned by Public Companies and Individual Investors.
What sector is JWN in? ›
Nordstrom, Inc. engages in the manufacture and trade of clothes, shoes, and accessories. It operates through the following segments: Retail and Corporate/Other.
How is Macy's different from Nordstrom? ›
Macy's is known for offering a wide range of products at a variety of price points and a mix of high-end and budget-friendly options, while Nordstrom is a luxury department store that offers a wide range of clothing options at premium and high-end designer prices, with a strong focus on high-end, luxury, and premium ...
What is the average age of Nordstrom customers? ›
With an average age of 43, Nordstrom shoppers are a decade or so younger than the norm for U.S. department stores. Nearly 40 percent are the heavily pursued age group under 45 years old. And among Americans with household incomes of $300,000 or more, 62 percent shop at Nordstrom, the company says.
What is Nordstrom's core ideology? ›
Feel Good Being You.
We've long believed that we're all made better by the diversity that exists within our communities. Our values are centered on the notion of creating a place where every customer and employee is welcome, respected, appreciated, and able to be themselves.
What is Nordstrom's market segment? ›
What are Nordstrom Inc's Business Segments? We have four segments: Retail Stores, Credit Operations, Catalog/Internet, and Corporate and Other. The Retail Stores segment derives its revenues from sales of high-quality apparel, shoes and accessories.
Where does Nordstrom retail rank? ›
Top 100 Retailers 2024 List
| Rank | Company | 2023 worldwide retail sales (billions) |
|---|
| 34 | Nordstrom | $14.23 |
| 35 | Menards | $13.08 |
| 36 | Dick's Sporting Goods | $12.91 |
| 37 | Gap | $15.03 |
96 more rowsEver shopped Nordstrom? It's a favorite retail store because of its great, unique discriminators. Consider its high-touch service, its spacious look and feel, top quality products, and personalized customer service, both on- and offline.
Who is Macy's biggest competitor? ›
Current CEO: Jeff Gennette.
- The top Macy's competitors are.
- Nordstrom.
- Dillard's.
- JCPenney.
- Kohl's.
- Bloomingdale's.
- Neiman Marcus.
- Belk.
