The DealmakeHers’ Post

The Nordstrom Story: Part 3: Embracing the bold future: Going to the Mall and Going Public … And on a roller coaster ride! Post the WW 2, Nordstrom started to ride the #EconomicBoom. The brothers made a bold move of starting a new big format store in a shopping mall. Malls were the new phenomenon. Though many critics were sceptical, this move proved valuable for Nordstrom. They grew faster than ever before. Number of stores multiplied. So did revenue and profits. Another bold move the Nordstrom brothers did was #LineExtension. They extended the stores’ offering beyond shoes to include apparel. This proved to be a wise decision as Nordstrom grew even faster. In 1963, John Nordstrom the founder passed away at 93. He was also honoured as the Shoe Man of the century. A few years later, it was time for the second generation to retire. They weren’t sure if their sons were capable of continuing the legacy and were talking to potential buyers. However the next generation convinced their fathers that they were capable of expanding the business further, by presenting a business case. They decided to take Nordstrom public and the IPO was a roaring success. They expanded their footprint across the United States. As the third generation decided to retire, they brought in professionals to run the company. This period was tumultuous for Nordstrom. The company was drifting. The fourth generation Nordstroms took over the reigns after letting go the professional CEO. They took Nordstrom online. Quickly their online revenue grew. Rapid changes in environment, shift in customer preferences and Nordstrom losing sight of its #CoreValue of #CustomerSatisfaction and #CoreCompetency of #Excellence lead to diminished sales and margins. Nordstrom had to go back to its roots and reinvent itself to be a #CustomerCentric company again. Bruce came back from retirement to become chairman and two fourth generation Nordstroms took over the running of business. In this phase Nordstroms focused on both #CustomerCentricity and #EmployeeCentricity Nordstrom started gaining more customers and grew again. It went international too. The online offering expanded too. Today Nordstrom is a leading luxury retail chain. Started by a gritty farmer who migrated with US$ 100 in his pocket from Sweden to the new world in search of good fortune, created a lasting legacy called Nordstrom through #perseverance #customerfocus #hardwork #tenacity and #innovation Nordstrom focused on #creatingvalue over #valuation by relentlessly focusing on #Employees and #Customers There’s a lesson for every business from the Nordstrom story. Post script: Bruce Nordstrom passed away in May 2024, aged 90. Despite #Covid19 induced shocks, Nordstrom is going strong as a #Fortune500 company at the 286th place. <Concluded> #BusinessExcellence #Built2Last #Built2Thrive #ChangingWithTimes #Successful #ChangeManagement #ContinuousInnovation

Nordstrom: What Is the Future for Department Stores? Last week, Macy’s new CEO announced that the chain would close 150 department stores and invest more in its luxury-focused Bloomingdale’s locations, a drastic move aimed at ensuring the company could survive an assault from activist investors, as well as the wider retail apocalypse. Nordstrom’s product mix is closer to Bloomingdale’s than Macy’s, but it faces many of the same problems, including declining foot traffic in some malls and shrinking margins in the always tough wholesale business. The company has dabbled in fixes ranging from small-format stores to closing unprofitable businesses (RIP Nordstrom Canada), and the closure of Macy’s stores may send some customers to rival department stores. But if things don’t turn around soon, the company may need to contemplate some drastic moves of its own, or risk becoming another activist investor target. What do you think is the future for “large” department stores? #departmentstore #macys #nordstrom #luxuryfashion #retailnews #bigboxretail #luxuryretail #toronton #oakville #fashionnews #fashionindustry

Abercrombie & Fitch Co.'s remarkable resurgence underlines the power of putting consumers at the heart of every decision. Their success story is a testament to the efficacy of customer-centric strategies in revitalizing a brand. #BusinessStrategy #CustomerFirst

My CNBC video interview on Abercrombie & Fitch's blowout sales and profits illustrates the competitive advantage of having a retail merchant as the CEO! Fran Horowitz is a savvy CEO offering Great Fashion for Real Consumers and everybody wins!! #abercrombieandfitch #fashion #cnbc #retail

Abercrombie & Fitch Co.’s comeback is highly impressive. If you consider where the brand was some years back and its problematic recent history, the fact it is now one of the fastest growing apparel retailers is little short of remarkable.   Part of the reason for the success is that Fran Horowitz and her team are retailers, they understand how retail works and, most of all, they are completely focused on the customer. All of their plans and decisions have been taken with the customer in mind, which is why they have worked so well. Many other retailers give lip-service to the customer, but don’t really follow through. This isn’t the case at Abercrombie.   The integrated nature of management’s vision also played a big role. They have looked at every aspect of the organization to see how it needs to change to fit in with the new vision. For example, while changing products has been at the heart of the reinvention so too has retooling the supply chain to make it faster so the company can chase trends rather than try and predict them. Another example is looking at where and how products are sold, which has led to sensible decisions on downsizing stores and coming out of loss-making vanity flagships.   Fran and her team haven’t been afraid to make change and ditch past baggage. Basically, this is a team that has a very firm grip on the business and on the market and has executed flawlessly. It was great have my comments included in Vogue Business' interview with Fran (link in comments).  #retail #retailnews #apparel #fashion

Bruce Nordstrom, a retail legend and the grandson of a Swedish immigrant, has passed away at 90. His grandfather, John W. Nordstrom, started a small shoe store in 1901 that Bruce would later transform into a retail powerhouse. Starting at the age of 9, Bruce swept floors, worked in the stockroom, and earned 25 cents an hour. Reflecting on those early days, he once said: "It was the Second World War, and I was sweeping floors, emptying shoeboxes, breaking them up, flattening them into bundles. It was hard work, as I was a skinny little guy". That skinny little guy, who loved retail and had an exceptional work ethic, would end up transforming his grandfather's shoe store into a retail powerhouse. I share this story with you, because it exemplifies what I call an 'immigrant mindset'. In my research of immigrant entrepreneurs, I have often come across their desire to do even the menial or seeming unimportant tasks with great passion and attention to detail. By paying attention to the task in front of you, and doing it with great care and love, you can transform it into treasure - this is what I have seen in my own life, and research confirms it. #ImmigrantMindset #BruceNordstrom #Nordstrom #AmericanRetail #BusinessLegacy #GivingBack #FashionRetail #HR #CEOStories #FounderStories #FamilyBusiness

Not the end of the world, maybe not even the end of the road, but it certainly is the end of an era. Iconic Los Angeles fashion retailer Fred Segal has closed its remaining stores in West Hollywood and Malibu. For those of us who moved their first steps in fashion in the glorious heydays of the denim renaissance, Fred Segal was synonymous with California-cool style, a style reference stalwart revered around the globe, as well as a celebrity hot spot, referenced in shows like "Beverly Hills, 90210" and "Dawson's Creek." Another temple of physical retail crumbling under the shift to online shopping, economic uncertainties, and decreased foot traffic. There’s a place up there for Fred Segal in denim paradise. Read more about the closing of all remaining Fred Segal stores at the link below in the comments👇 #denim #fashion #retail #retailapocalypse #stores #physicalretail #retailnews #linkedinpostsbymariopace

New White Paper: Navigating Cross-Shop Scares 🛒💳 The cross-shop scaries are real, but Consumer Edge data can help companies figure out when to invest in combating cross-shop versus when the threat is just a fad. For instance, an apparel retailer specializing in enduring basics like Abercrombie & Fitch Co. may be concerned when it sees rising spend from its customers at brands like Temu, Forever21, Old Navy, H&M, and Gap. Abercrombie & Fitch shouldn’t worry. When Abercrombie shoppers visit Temu Forever 21, Old Navy, H&M, and Gap, they spend less than half of what they spend on average at Abercrombie. The lower average ticket implies that these other retailers are likely trade-down options for Abercrombie customers when their wallets are tighter and they’re looking to spend less on clothing. https://hubs.li/Q02F2X2p0 #consumerbehavior #crossshop #insights #corporates #research

Stretched: Jeans Giant Levi’s Is Pushing Back Its Targets. Levi Strauss is making some material changes — including resorting to plan Bey— in an effort to win back consumers following years of disappointing sales results. New CEO Michelle Gass, appointed earlier this year, told the Financial Times that the company's existing #revenue target of hitting $9B-10B by the year 2027 would need to be pushed back, explaining that there’s been “a lot of disruption in the industry” since those goals were set in 2022. Despite a relative bounce-back from the pandemic — #jeans survived the shift to “comfort”, after all — the retailer’s revenues have since stagnated at ~$6B. And #profits have tumbled: net #income fell 56% to $250M for the year to Nov 2023, continuing a long history of meager #sales growth. Still the biggest name in the #denim game, Levi’s has had to weather stiff competition in recent decades. This has squeezed its profit margin, which fell to a tight ~6% last year. Nonetheless, the success of the company’s direct-to-consumer segment will see hundreds more #LeviStrauss stores open in the next few years in a bid to get back to growth. Gass also outlined her plan to reposition the brand to appeal to more women — who, today, only account for roughly one-third of Levi’s sales. Indeed, Levi’s is trying to tap into its icon status to attract a broader range of customers. After featuring in a song title in Beyoncé’s latest album Cowboy Carter, Levi’s teased a collaboration with the superstar in an Instagram post yesterday… and tomorrow, Paris’ Le Marais district will see the opening of a ‘Haus of Strauss’ #retail space, featuring made-to-order jeans that are set to cost some €595 ($663). [email protected] 818-914-9271 #tradecreditinsurance

The future is fitting rooms! A place in the store where everyone should feel welcomed and get exceptional service from their favorite brands. Hear how Victoria’s Secret & Co.'s journey to make the store of the future become the "future where every customer feels appreciated and included in the shopping experience." I needed a tissue for that last story. A question for all my retailers: What makes #impactfulretail? Have you connected with Crave Retail's Founder, Matthew Cyr, if you or a colleague is attending The Lead Summit starting tomorrow? He will be there to talk about what makes "Impactful Retail." The area in your store might surprise you, which can lead to an inclusive experience for all your customers. #thefutureisnow #fittingroomtechnology #customerexperience #retailforeveryone