Question

What are Nordstrom’s greatest risks, and who are its
biggest competitors?

Answer 1

Nordstrom is a chain of departmental stores which sells all the necessary consumer goods such as shoes, clothing, handbags, jewellery, accessories etc. It was founded in 1901 by John Nordstrom and firstly it was just only a shoe retail store and afterwards, it expanded their business and add most of the consumer goods to their list. Nordstrom is one of the biggest and leading departmental store as it provides excellent customer experience and quality product and that too with a wide range of variety. As they are leading in the market so there are risks also their.

Some of the greatest risks are as follows-

1) In any retail business its service plays a very important role, the company has to understand the need and requirement of the customer and according to them, they have to provide them with the best shopping experience so in future also they will come back. Similarly with Nordstrom also one of its risk factors is its customer experience, if the customer is satisfied they can grow and if they are not the growth will stop.

2) The second risk is that many new competitors are coming into the market with new strategies and pricing their products at a cheaper price so Nordstrom may lose it customer or traffic share.

3) Thirdly if the market gets down, then nobody will be heading to Nordstrom as the customer's spending habits will be changed due to a lower level of income.

4) Nordstrom is not using a lot of marketing and advertising techniques as compared to its competitors. It is also a risk factor as due to change in market trend marketing and advertisement play a very important role in increasing the sales as well as the traffic share.

The biggest competitors to Nordstrom are Bloomingdale's, Neiman Marcus, Saks Fifth.