Nordstrom, Inc. (Seattle) has unveiled major changes in its expansion and site-selection strategies. Following a year in which it had a big management shakeup and significant sales concerns, it says it is reexamining all of its decisions on new-store openings.
In light of a .6 percent same-store sales decrease in November, company president Blake Nordstrom told securities analysts that it has shrunk same-store sales growth projections to 1 to 3 percent for the next three years. Nordstrom is targeting gross margins at roughly 34.5 percent for the same period. “These are not aggressive goals,” he said, “but goals we must hit.”
As part of its retrenchment, the retailer said it has canceled plans to open two stores in the Cincinnati area and one in Pittsburgh during the next two years. Plans will go ahead with a 2003 opening at Wellington Green in Palm Beach, Fla.
Among other cost cuts announced by Nordstrom will be in back-office operations, travel and computer purchasing. On the other hand, the executive said it will spend millions on new merchandising and inventory technology and will raise compensation structures for its sales force, to boost morale and productivity.
Such thinking must have been what again landed the retailer on Forbes magazine's annual list of 100 Best Companies to Work For. In fact, the specialty-store retailer improved its ranking, to 68th this year, versus 94th, 98th and 71st in 1999, 98 and 97, respectively. Among the attributes noted by Forbes was that women employees outnumber men by more than two to one at Nordstrom, and they hold 70 percent of the managerial and supervisory positions.
The retailer also offers its employees an extensive benefit program including a 401k with company matching funds, profit-sharing, a stock ownership plan, adoption assistance and domestic partner benefits to same sex couples. Nordstrom also has a long history of promoting from within, a fact that is bestillustrated by the number of corporate employees, store and regional managers who began their careers on the selling floor.
Nordstrom has also been selected on Fortune magazine's America's Most Admired Companies list (in 1999 and 1998) and on the magazine's list of 50 Best Companies for Asians, Blacks & Hispanics.