Nordstrom If this was five years ago, Nordstrom, a high-end American department store selling a variety of goods, would be receiving praise. However, with the huge advancements of Digital Innovation in recent time, Nordstrom’s is struggling to remain relevant in today’s retail industry. Hampered by over 300 locations in North America, the once-giant retailer is a step behind the eight ball. With the advancements in technology and e-commerce, Nordstrom has too much capital tied up within tangible assets and more specifically their real estate portfolio. In shifting away from expanding the once deemed asset and rather downsize that section of the companies resources, the company can turn its focus to improve the core of the business and invest …show more content…
Tangible assets, defined as a physical property used to be how large corporations ran businesses then came a technological revolution where intangible companies, businesses with non-physical assets lead the game such as Amazon, Google and Facebook. Minimizing the amount of stores will shift your business more towards the right side of the spectrum which will do wonders financially speaking. With too many locations and not enough loyal customers, Nordstrom relies too heavily on its in-store sales to elevate the success of the company. Ultimately it would require down-sizing part of the work force. Doing so would increase founds to reallocate capital within the company with more pressing needs. It isn’t about how many employees you have but rather how many highly motivated productive employees are employed since humans are the ones who generate ideas for the company to succeed. These changes would allow Nordstrom’s to reduce overhead costs and unload real estate which would arm them with a substantial amount of cash to re-vamp it’s business …show more content…
In order to do so, funds should be invested to develop their own data analysis system for its customers to predict and guide future customers to purchase on their website. Nordstrom’s should sell struggling stores and only keep prime locations, while also modify a part of the budget towards research and development for software development and e-commerce. By implementing a strategic, high-tech system to extensively track shoppers, it will provide Nordstrom’s with enough data to properly estimate and guide households to shop through Nordstrom’s online department store or visit one of it’s locations famous locations. Similar to how Facebook ads track a users digital history to find information and next thing the user knows, everything they just looked up is for sale in an advertisement on their news feed. Nordstrom will implement a similar service to cater there needs in order to stay above their closest competitors in Saks, Niemen Marcus and