4-2 Milestone OneInvestment Project and Justification Brittani McDonough Southern New Hampshire University MBA 640-X1278 October 2, 2017 Investment Project and Justification Investment Project John W. Nordstrom believed in success would come only by offering customers the very best service, selection, quality and value (Nordstrom, Inc., 2017). Since opening in 1901 as a small shoe store in Seattle, Washington, Nordstrom has grown into a major retailer with 353 stores throughout 40 states and Canada, and serves customers in 96 countries with their online shopping experience (Nordstrom, Inc., 2017) As company growth continues, so has the need to look at expansion outside of our current environment. For this reason, it is being proposed that …show more content…
According to a 2015 survey of Chinese, both on the mainland and in Shanghai, the most popular place to shop was department stores due to their wide variety and trendy fashions, both of which Nordstrom currently supply in all their other stores (Yau, 2016). Nordstrom will have competition from Chinese retailers, there are few department stores in the area that offer the variety of options and pricing points that Nordstrom does. Because one of the company’s main 2020 goals is to reach $20 billion in sales, this market is perfect to help accomplish that …show more content…
The company has also experienced tremendous growth in their discount Nordstrom Rack division as well as HauteLook, their online retailer (Nordstrom, Inc., 2017). The sluggish economy did not appear to hinder China’s growth either and in 2015, the country surpassed the United States for the largest economy in the world (The World Factbook: China, 2016). The company has also pledged to push for more growth in both urban and undeveloped areas of the country in a continued effort to provide stable employment for recent college graduates and the nearly 300 million migrant farm workers and their families who have relocated to more urban areas in search of more livable wages (The World Factbook: China, 2016). Because of their already present business operations, Nordstrom’s addition of a retail presence both online and with a brick and mortar store will help bring more money and jobs to the Chinese economy and a large profit potential for the company. Building a retail space close to the largest concentration of private label manufacturers Nordstrom currently uses, will no doubt cut down on shipping (in-bound and out-bound), tax (both local and international), travel, cost of manufacturing, and use of natural resources involved in the business process (Nordstrom, Inc. ,