Nordstrom Strategic Priorities

Strategic Fit

Priorities

Nordstrom has outlined both their organization and financial priorities for fiscal year 2018 as such: “successful execution of our customer strategy, including expansion into new domestic and international markets, acquisitions, investments in our stores and online, our ability to realize the anticipated benefits from growth initiatives and our ability to provide a seamless experience across all channels.”

With regard to organizational priorities, the $700 million expansion of Nordstrom brick-and-mortar locations into the United Kingdom will ultimately fulfill the organization priority of creating a seamless experience across all channels for an effective omnichannel experience, as web sales are currently available.

As Nordstrom’s home market of the United States retail sector is expected to remain stable for fiscal year 2018, with a 3% growth in sales and no further store openings in 2018, looking to outside growth initiatives can be a priority for Nordstrom. This is so, as it is also a priority of Nordstrom to generate sales of $20 billion by fiscal year 2020; therefore, in three years $5.24 billion more dollars are expected to be earned in sales at fiscal year end. Whereas, expansion into the United Kingdom has the ability to generate an additional $154.6 million in sales for Nordstrom initially, in addition to a projected 20% growth to current online sales throughout the United Kingdom due to brand viability and derived omnichannel value. With successfully established brand viability, thereafter expansion of Nordstrom Rack can be spearheaded to generate further sales, as a mere 10-20% of consumers overlap as both Nordstrom and Nordstrom Rack consumers, to assist in fulfilling Nordstrom’s financial initiative of sustainability, growth and expansion projections to achieve the 2020 $20 billion sales

Therefore, allowing for merchandise to be brought to market expeditiously, as compared to the United States due to geographic proximity. Additionally, the time that it takes for United Kingdom consumers to receive their ordered merchandise from online order would be abbreviated, in comparison to current day ship times. Furthermore, with a low employment rate of 4.6% at the end of 2017, it is a signal the economy is strong and that with appropriate wages for the competitive advantage Nordstrom is seeking, qualified and motivate employees will not be hard to