Here - Accessories Magazine

Transcription

JUNE 2013 $7.50
Retailer
of the Year
NORDSTROM
2013
RETAILER
OF
THE
YEAR
From top: Haider
Ackermann;
Pantone’s
Emerald; Tory
Burch’s long
necklace; Preen’s
python; Milly’s
hologram
FIND MORE AT ACCESSORIESMAGAZINE.COM
| JUNE 2013 | ACCESSORIES 11
12 ACCESSORIES
| JUNE 2013 | FIND MORE AT ACCESSORIESMAGAZINE.COM
RETAILER OF THE YEAR
by Lauren Parker
M
$59.95, in store and online.
At press time, Nordstrom Inc. operates 248 stores in 33 states,
including 117 full-line stores, 127 Nordstrom Racks, two Jeffrey
boutiques, one Treasure & Bond store and one clearance store.
Not bad for a Seattle shoe store opened in 1901.
Nordstrom is also heavily investing in itself. Its capital
investment totaled approximately $2 billion over the past five
years and will nearly double to $3.7 billion in the next five, chief
financial officer Michael Koppel told analysts on the earnings call.
Investments will go to expansions (including Canada and
Manhattan), e-commerce and Nordstrom Rack.
Despite a lower-than-expected 2013 forecast, total sales growth
projections of 4% to 6% and 1Q net sales of 4.8% coming in on
the lower end of expectations, many investment analysts are still
rating Nordstrom’s stock (NYSE: JWN) a “buy” rating based on
Nordstrom’s overall performance.
In the recently released 1Q report, same-store sales, including
full-line and direct business, increased 3.1%. Top performers were
cosmetics, women’s apparel and handbags.
Nordstrom truly deserves Accessories Magazine’s 2013
Retailer of the Year Award. Here, a look at the company’s past,
present and future.
ention Nordstrom and
people’s ears perk up—from
consumers to accessories
vendors to analysts.
The Seattle-based retailer
was recently named
“America’s Favorite Fashion Retailer” in Market Force
Information’s 2013 annual consumer study. And not only did
Nordstrom rank #16 in Fortune’s 2013 list of the World’s 50 Most
Admired Companies, Nordstrom has consistently made both
Fortune’s “Best Companies to Work For” and “Most Admired”
lists. Nordstrom.com ranked #28 on the Internet Retailer Top 500
for 2013, and, according to app-rater Xtreme Labs, Nordstrom’s
mobile app was ranked as the third highest rated retail app on
Android devices.
Companies can even learn some new trade secrets in the
recently published book: “The Nordstrom Way to Customer
Service, Second Edition.”
But no matter how much companies like working
with Nordstrom or how much consumers like shopping
there, numbers are everything. And the numbers are
good. Nordstrom is coming off a record sales year with
$11.8 billion in sales, up by 12.1%. Comp store sales
increased 7.3%. While the upscale retailer has held its
own, growth at the off-price Nordstrom Rack stores has
been even better; seriously contributing to the
company’s bottom line. Rack opened 18 stores in 2012,
Accessories Magazine salutes Margaret
and net sales rose 23%. Fourth quarter comp sales for
Myers, EVP/GMM; Andrea Saal, National
the Rack were up 7.1%, the largest fourth-quarter
Merchandise Manager, Jewelry and
increase in six years.
And let’s not forget the web. Online sales just topped
Watches; Michelle Sample, National
$1 billion and that channel is growing faster than
Merchandise Manager, Handbags and
anything else.
While a traditional retailer, Nordstrom is also highly
Small Leathergoods; and Lori Marten,
progressive. In 2011 it purchased online flash sale site
National Merchandise Manager,
HauteLook for a deal valued at $270 million, tapping
Accessories and Trend; plus the entire
into a whole new type of media-savvy, affluent
consumer. It also recently invested in online shoe “club”
Accessories Buying Team
Sole Society, selling the shoes, which retail around
HONORING
THE TEAM
FIND MORE AT ACCESSORIESMAGAZINE.COM
| JUNE 2013 | ACCESSORIES 13
timeline
1887
Sixteen-year-old John W.
Nordstrom leaves Sweden for the
U.S. with $5 in his pocket and not
a word of English. After laboring
in mines and logging camps, he
heads to Alaska in search of gold.
Two years later he returns to
Seattle with $13,000.
1901
Nordstrom teams up with Seattle
shoemaker Carl F. Wallin—whom
he met in Alaska—and opens the
store Wallin & Nordstrom on
Fourth and Pike in Seattle. The
philosophy is all about service,
selection, quality and value.
1923
After retail success, the partners
add a second store in Seattle’s
University District.
1928
John W. Nordstrom retires and
sells his share to his sons, Everett
and Elmer. Carl Wallin retires
soon after and sells his interest to
the Nordstrom sons.
14 ACCESSORIES
1933
A third son, Lloyd, joins the team
and in the following years the
Nordstroms build the company
into the largest independent shoe
chain in the nation—eight
Nordstrom shoe stores in
Washington and Oregon, and 13
leased shoe departments in
Washington, Oregon and
California. The downtown Seattle
store becomes the largest shoe
store in the country.
1963
Nordstrom buys Seattle-based
clothing store Best Apparel, which
has an outlet in Seattle and another
at Lloyd Center in Portland, Ore.
Elmer, Everett and Lloyd
immediately began modernizing
Best Apparel and run it along with
established Nordstrom shoe stores.
1965
They open a new Best Apparel
location adjacent to their shoe store
at Northgate Mall in Seattle. The
following January, the company
purchases a Portland fashion
retailer, Nicholas Ungar. They
merge this store with the existing
shoe store in downtown Portland,
renaming it Nordstrom Best.
1966
1973
1968
1975-78
A new Nordstrom Best opens in
Tacoma, Wash., followed by the
opening of a newly remodeled
Nordstrom Best in Bellevue,
Wash., in November of 1967.
Everett, the eldest brother, turns
65 years old and company control
is turned over to the family’s third
generation, resulting in a
leadership team consisting of
Everett’s son Bruce, Elmer’s sons
James and John, Lloyd’s son-inlaw Jack McMillan, and family
friend Bob Bender. The third
generation continues to run the
company with its initial
philosophy.
1971
Nordstrom goes public, offering
Nordstrom Best stock.
1973
The first Nordstrom Rack opens
in the basement of the Seattle
store as a clearance center for fullline store merchandise. Today,
Nordstrom Rack has grown to 127
stores in 30 states, offering ontrend clothing, shoes and
accessories at 30% to 70% off
regular retail prices.
Sales surpass $100 million and
Nordstrom is recognized as the
West Coast’s largest volume
fashion specialty store. That same
year, the company is renamed
Nordstrom, Inc.
Nordstrom purchases three stores
in Alaska. In 1978, Nordstrom
enters the highly competitive
California market with the opening
of the South Coast Plaza
Nordstrom in Orange County.
This store lays the groundwork for
rapid expansion into other cities
throughout California.
1988-91
Nordstrom opens its first East
Coast location at Tysons Corner
in McLean, Va., and in 1990, the
company opens a store in
Paramus, N.J. In 1991, a new
Nordstrom opens just outside of
Chicago at Oakbrook Center in
Oak Brook, Ill., and expansion
continues across the U.S.
throughout the 1990s and into
the next decade.
1995
The third generation of Nordstrom
family members retire as cochairmen, but retain their positions
on the Board of Directors.
1998
2009
2000
2010
Nordstrom.com launches. By
2009, Nordstrom implements
industry-leading inventory
management and order fulfillment
capabilities to offer seamless
shopping both online and in-store.
Nordstrom acquires Façonnable,
S.A.S., high-quality men’s and
women’s apparel and accessories
that had been sold exclusively in
the U.S. at Nordstrom stores and
Nordstrom-operated Façonnable
boutiques since 1989.
2005
Nordstrom purchases a majority
interest in specialty store Jeffrey.
The two stores are located in
Atlanta’s Phipps Plaza and
Manhattan’s Meatpacking District.
In 2007, Nordstrom completes its
investment and creator Jeffrey
Kalinsky takes on a greater
leadership role as executive vice
president of designer
merchandising at Nordstrom while
remaining president and CEO
of Jeffrey.
Nordstrom’s
customer
service is
legendary,
and there’s 2006
an oft-used
phrase that
companies
want to
2007
be “the
Nordstrom
of their
industry.”
Bruce Nordstrom retires from his
position as chairman of the Board.
Today, president Blake Nordstrom
and brothers Pete Nordstrom,
president of merchandising, and
Erik Nordstrom, president of
stores, manage the company along
with the executive team.
Nordstrom sells Façonnable and
discontinues operating Façonnable
boutiques in the U.S. and Europe.
16 ACCESSORIES
Nordstrom begins shipping orders
abroad and currently serves 95
countries online. In subsequent
years, Nordstrom enhances its
website’s features and
functionality, introduces mobile
shopping apps, and launches
everyday free shipping and free
returns within the US.
Nordstrom purchases a minority
stake in kidswear brand
Peek…Aren’t You Curious, and
becomes the exclusive retail
partner for the brand beyond its
own stores and website.
2010
Nordstrom Rack opens in Union
Square, New York—a first for
Manhattan.
2011
Nordstrom purchases HauteLook,
a leader in the online private sale
marketplace. Headquartered in
Los Angeles, HauteLook offers
customers exclusive access to
limited-time sale events on top
fashion and lifestyle brands.
Nordstrom also makes
investments in Sole Society, a
shoe membership website founded
and later spun off by HauteLook,
as well as Bonobos, a rapidly
growing menswear brand that was
first launched online.
2011
Nordstrom opens independent
boutique Treasure & Bond in New
York’s Soho neighborhood. The
concept shop donates 100% of its
profits benefitting New York City
non-profits.
2012
Nordstrom becomes the only large
U.S. retailer to sell a broad
assortment of the British fashion
brands Topshop and Topman instore and online.
2012
Nordstrom achieves record net
sales of $11.8 billion. The
company announces more full-line
stores in new and existing markets,
and remodels and updates to
existing stores. It also begins to
increase the number of Rack
stores, with 230 Nordstrom Racks
projected by 2016. At the same
time, the company is accelerating
online growth—investing and
innovating in e-commerce, mobile
and putting technology in front of
the customer faster.
2012
Nordstrom’s online sales reach $1
billion and dot-com remains the
fastest-growing segment of the
business.
2013
Nordstrom operates a total of 248
stores located in 33 states, with
117 full-line stores, 127
Nordstrom Racks, two Jeffrey
boutiques, one Treasure & Bond
store and one clearance store. By
the end of 2013, Nordstrom will
have relocated one full-line store,
opened 22 new Racks and
relocated two Rack stores.
2013
Nordstrom teams up with artisan
website Etsy to create a wholesale
marketplace.
2013
Nordstrom goes after fast-fashion
to revamp its Savvy department,
bringing in lower prices and
moving higher-priced brands to
other existing departments.
2014+
Nordstrom has announced plans to
open its first full-line stores in
Canada beginning in 2014 and is
exploring additional store
opportunities as part of its future
expansion into Canada. The first
Manhattan store is slated to open
in 2018.
HIGH-LOWAPPROACH
Nordstrom is growing in two directions—more luxury merchandise and affordable
fast-fashion—appealing to a widening customer base on many levels
F
rom $49.95 Sole Society Shoes to fast-fashion Topshop
accessories to expanded off-price Rack stores, it’s tempting
to think Nordstrom is shifting downward but that’s far from
true. The luxury retailer is expanding outward, layering on
new strategies to attract additional consumers.
“We have been excited about the growth of our Designer presence at
Nordstrom—such as Lanvin, Saint Laurent, Alexander McQueen,
Proenza Schouler, Jimmy Choo, Chloe, Fendi, Gucci, Prada, to name a
few,” says EVP/GMM Margaret Myers. “This growth of business in the
best merchandise the world has to offer is continuing. Clearly our
Nordstrom customers want us to continue to grow this offering. What we
care about most is our relevance to our customers. That obsession is how
we as curators of the assortment actually deliver customer service. What
it takes to be relevant is constantly changing, but our drive to be relevant
to our customers with our offering never does.”
At the same time, Nordstrom is responding to how customers love to
shop high and low in price point. “Those barriers of strict conformity are
completely broken down. This has motivated us to be clear about a
balance of prices in all categories. A few years ago, for example, this led
us to expand our Trend Accessories offer in some stores in locations other
than the Mainfloor, and to define this department more clearly with
accessible price points.This department is positioned for easy access on
our apparel floors and puts a strong offer of fast fashion within a couple
of steps of apparel.
While many department stores put private-label merchandise in their
18 ACCESSORIES
trend departments, Nordstrom is extremely committed to brands. In
addition to its mainfloor department, which focuses on designer brands by
classification, Nordstrom has developed a vibrant Trend Accessories
Department on another floor. This serves as an additional outpost for
accessories grouped by trends. Everything is touchable, accessible and in
easy-to-understand groupings.
“Our buyers are obsessed with selecting what customers will love. We
think about this and act on it constantly,” says Myers. “Our best
partnerships with suppliers are created when we share our insights with
them and fully collaborate on curating an offer that is irresistible. We are
very grateful for this open-to-listen attitude from the brands we support.”
VENDOR
ACCOLADES
“WE SELL ANNE KLEIN AND VINCE
CAMUTO WATCHES TO NORDSTROM and have
found them to be more focused than other retailers. As a leader in fashion,
they dictate key trends. They focus on true fashion trend-right elements
and because they’re such a leader in that type of retailing, they help to
create trends. The consumer goes there to see what’s new. In trends, rose
gold and gunmetal are rolling into spring, while another hot trend is
stackable jewelry wrist action (whether from sets of watches and bangles
sold together, or wrapped leather watches with chains that add to the
appearance of numerous stacked elements). Glitz and stones—in a more
fine-jewelry, micro-pavé, baguette way—are also doing well. Other hot
trends are pyramid studs, black-and-gold, and rose gold, which is inspired
by the fine industry but looks great on fashion watches.”
—MICHAEL FEAGAN, SVP,
E. GLUCK CORP
“NORDSTROM WAS HOBO’S FIRST
DEPARTMENT STORE and was instrumental in putting us
on the map. They were the first major retailer to identify our Lauren
wallet and put it into their assortment and they’re actually doing a
designated Holiday 2013 presentation for their 10th Anniversary of
carrying our Lauren wallet/clutch. They’re always very supportive of
their brands. They also take fashion risks. While other retailers
purchase more classic assortments, they buy our prints and colors in
bolder assortments, and sell them better than other retailers too. They
always represent the brand perfectly and Hobo can always count on
them to support our presentation with a bold show of color and prints.”
Anne Klein watches
make time for rose gold
—KOREN RAY, CO-FOUNDER,
HOBO
“NORDSTROM UNDERSTANDS THE NEED
TO BE ON-TREND and the relationship with the customer is
very important to their success. They are very good at messaging to
customers about importance of trends and directing their audience to what
is exactly fashion right. Nordstrom is confident in their ability to
recognize the potential power of even emerging brands. They were the
first retail partner to invest heavily into both the Michele and Michael
Kors watch brands.
In addition to fashion aspects, watches require expertise in both the
initial selling and after-sales servicing, from sizing to helping the
consumer understand all the features of the watch. Nordstrom has sales
associates who take that extra crucial step to make sure the customer stays
happy with a watch purchase. This builds a loyal customer for both
Nordstrom and the brands.
Nordstrom recognized that two-tone would be very strong during one
of the gift-giving seasons. We developed a two-tone story for Kors that
exploded and now they’re consistently among the best sellers. This
summer for Diesel it’s about gold, for Marc by Marc Jacobs and Kors
color, gold and rose gold are key. For Fossil, summer white and a bright
color palette. Overall white and neutrals are important across all brands.
Nordstrom also recognized that their customers desired glitz and
strongly encouraged our brand Marc by Marc Jacobs to add crystal
embellishment options to capitalize on this potential. Since then, these
styles quickly became a great part of the watch business.
—DORA YARID, REGIONAL VP
OF SALES, FOSSIL
Hobo’s
Lauren clutch
“WE SELL HAIR ACCESSORIES, JEWELRY,
EVENING BAGS AND BELTS TO
NORDSTROM under the brands Tasha, Natasha and Natasha
Couture. They’ve always had a big commitment to hair accessories and
it’s paid off. They’ve built a hair business with their customers and they
20 ACCESSORIES
do a great job because their presentation is really good. The way they
display is understandable and they sell with presentation and
demonstration. They’re so great at sales service and the sales associates
help and show the customers how to wear hair accessories. They built a
business with us and they believe in us and the product. We’re in the
trend department and the mainfloor department.
In jewelry, both fashion and trend, for spring the hottest for us has been
leather wrap bracelets that snap, with spikes, studding or links, sometimes
wrapped with chains. In scarves, infinity scarves have been so successful
because they just know how to sell it! In hair accessories, ponies—
elastics with leopard prints, stones or stripes—as well as headwraps have
been key.”
—RAVIE SINGH, PRESIDENT,
NATASHA
“THE JEWELRY TEAM AT NORDSTROM IS
TOP NOTCH. Professionally planning and operating quickly,
Margaret, Andrea and the team always partner with us to provide the
Nordstrom customer the hottest jewelry trends. This year is no exception,
as they launched into Nadri Sterling with confidence. Always focusing on
customers and what can sell, they consistently outpace the turnover
equation, while continuing to grow revenue. They are leaders in the
marketplace in trends, presentation and creating new ways to ‘speak to
the customer’ about lifestyle, and how the new jewelry trends can adapt.
Online, in print catalogs and now using digital media, they are leadership.
We embrace all vehicles with them. Though we are largely a stonefocused company, Nadri always works in tandem with the Nordstrom
jewelry team to create new avenues, utilize our company expertise and
expand. Thank you, Nordstrom, for continuing to push our envelope.”
Mirror metallic
shoes
—J. GREGORY BRANNAN, EVP,
CMO, NADRI
“NORDSTROM HAS A DEDICATED ‘SUN’
TEAM UNLIKE OTHER DEPARTMENT
STORES. The team is extremely knowledgeable about the field
and each member has a great eye for fashion. Nordstrom’s team is
always willing to try different brands and styles. The team gives
insight into the development of new product as they have a strong
grasp on the customers’ likes and dislikes. The buying team stays true
to the notion of having the customer always come first. Recently, the
team made a very positive addition to their online sales, adding Tom
Ford optical frames to the platform (we also sell them Roberto Cavalli
and Tod’s). Currently, we are placing an ad for their online platform
and this past March, Marcolin was a part of their print mailer with a
feature on the new color-way we presented for the Tom Ford ‘Raquel’
sun style. Styles that feature polarized lenses have been extremely
successful for Nordstrom and we are working to broaden our offering.
We recently contributed to signage that they are creating that is
dedicated to the polarized lens category.”
—MARCOLIN
Tory Burch handbag
22 ACCESSORIES
“I HAVE BEEN WORKING WITH
NORDSTROM SINCE I BEGAN MY CAREER
and they are a terrific partner and retailer. We work with Nordstrom
Rack as well and they’re also a good partner with a strong business
strategy. The breadth of the product offering is very strong at
Nordstrom. They have a great merchandising team and they offer a
personal shopping experience that highlights head-to-toe dressing for
“NORDSTROM IS TRULY AN AMAZING
RETAIL PARTNER and a real pleasure to do business with,
from management to the buying teams. We appreciate that they are
educated about the market, and knowledgeable about our products and
the segmentation of the business — they know exactly where each
brand will perform best.”
—GENNIE MURPHY, SVP
SALES, UNITED LEGWEAR
“NORDSTROM HAS AN EXTREMELY
PROFESSIONAL AND EXPERIENCED
BUYING/MERCHANDISING TEAM that is always
Kate Spade
sun hat adds
chic whimsy
looking for newness and the next trend. At the the same time, they
never forget who their customer is. Their vision and true love of
product keep all their departments looking fresh each season. They
have integrity, are collaborative, love product, merchandise it well
and have sales associates who care about the product and their
customers.
They know their customer intimately so they seek out product that
addresses their customers’ needs.
Their [fashion accessories] department looks better and better all the
time. They spend great efforts in choosing the right merchandise for
their customer, and presenting it in a fresh, modern and exciting way.
They frequently advertise our products in their books; visuals and
imagery are very strong, and their customers respond to their messaging.
They also feature our product in their Trend Shop which gives our brand
great additional exposure. We also have trunk shows and make personal
appearances there.
All our styles in the stores are also sold online, which provides a
seamless shopping experience for their customers. It’s been a win. We
are experiencing exciting growth with our Nordstrom online business.
Nordstrom has been an exceptional Echo partner for the 50 years,
since they began carrying accessories. Each season, they jump on key
items and trends. In addition to scarves and wraps, they have featured our
Sherpa vest, Echo Touch gloves, and infinity rings, and all have been
incredibly strong performers. Their team is amazing, appreciative of good
design and beautiful product, and they are a pleasure to work with.”
—LYNN ROBERTS, VP
COMMUNICATIONS, ECHO
Nordstrom
is highly
committed to
hair accessories
everyone. Their commitment to excellent customer service allows them
to offer the customer a positive retail experience.
Nordstrom’s commitment to the customer underscores the entire
experience when you walk in to shop. Their sales team takes the time to
learn about their customer’s preferences and engage with them both instore and online. The personal shopping definitely helps the customer
gain awareness of the trends across a variety of categories and also allows
the customer to figure out how to wear the trends in different ways to
create versatility in their wardrobe.
Their approach to the buying process and to the teams is very 360 and
they think strategically about brand launches, marketing and their
customer. Everything has to be connected in order to tell the brand story
and I think they do an exceptional job with their brands. I’m looking
forward to their New York City flagship when it opens.”
“WE’VE BEEN SELLING NORDSTROM FOR
18 YEARS and they’re great partners because they have a great eye
and know their customer. They are innovative, know what they want and
have great vision. From details in merchandising and advertising, they are
consistent in who they are. They’re known for outstanding service and
they are practically one of the few small specialty stores that actually
always have help at their counters. For spring, our hottest jewelry trends
have been glamour jewels with gem colors.
We also sell to Nordstrom Rack, which also has great vision, product
and prices. We make our product in the USA and we are able to sell to
them, they are smart and have a fair mark up, they want it to move
quickly and they don’t play the game of marking up 4-5 times and then
putting the product on sale for 50% off! Nordstrom understands what it is
to give customer service, and they have earned the loyalty of many. In
today’s world it is about it being convenient and easy to make a purchase
transaction in a short amount of time.”
—VINCE CAMUTO, FOUNDER &
CEO, CAMUTO GROUP
—LIZ PALACIOS, LIZ PALACIOS
24 ACCESSORIES
SPRING FASHION
HIGHLIGHTS
26 ACCESSORIES
COLLABORATIONS
& PARTNERSHIPS
To set itself apart from other retailers selling national designer brands,
Nordstrom has stepped aggressively into fashion’s brave new world of
exclusives, collaborations, pop-ups and capsules
Two cool
and hip
looks from
the Topshop
collection
N
ordstrom has gotten aggressive with its partnerships,
investing in or teaming up with businesses that can
enhance the bricks-and-mortar stores, its e-commerce site
and its mobile business. The fact that it invests so readily in
new platforms has been one of its defining factors.
“Strategic partnerships and investments including Topshop, Bonobos,
Sole Society and Hautelook, are formed so that we can be more
relevant, learn and develop better capabilities,” says a Nordstrom
spokesperson. “We’re also continuing to explore great new
partnerships,” says EVP/GMM Margaret Myers. “We have been
28 ACCESSORIES
nurturing our partnership with Etsy to support design talent in our At
Home department. We expect this will expand over time to our mainfloor
categories. This additional accessories offer has also been successful. All
of this speaks to our customers’ desire for accessible fashion.”
Creating the biggest in-store buzz was the Topshop partnership, which
kicked into gear September 2012. While Topshop and Topman have
flagship stores in New York, Chicago, Las Vegas and Los Angeles, not to
mention their own U.S. designated websites Topshop.com and
Topman.com, the partnership allowed Nordstrom to position itself as
edgy and on the pulse of what’s happening with international fast fashion.
Nordstrom is the only large U.S. retailer to sell a broad assortment of
the trendy British fashion brands’ merchandise in-store and online at
Nordstrom.com
“I believe Topshop and Topman offer the Nordstrom customer
something very different and unique with our signature British fashion
authority,” says Topshop’s Sir Philip Green. “With new pieces being
delivered from our design team on pretty much a weekly basis, the ability
to buy fresh, must-have looks every time a customer visits is key to our
brands’ point of difference. I admire what Pete [Nordstrom] and his team
do at Nordstrom and I look forward to working with them to create an
exciting and dynamic retail partnership.”
The Nordstrom partnership, however, isn’t a flash-in-the-pan
experiment, but rather a longstanding commitment that is helping to
expand the definition of the Nordstrom brand.
Topshop is the only high street brand to show at London Fashion
Week (LFW), and has recently celebrated 10 years of sponsoring New
Gen – supporting young British designers and giving them a platform to
show within LFW and promote their collections to the international press.
Topshop has 319 stores in the UK, with a further 137 international
franchises operating in 37 countries.
“Topshop and Topman are
internationally renowned leaders in
fashion and we are thrilled to start a
relationship with them that we hope
will grow and prosper over the
years,” says Pete Nordstrom,
president of merchandising for
Nordstrom, Inc. “[Our] customers
are going to love their take on trendled fashion at great prices.”
Some stores have fully built-out
Topshop merchandise folded into the
Savvy department merchandise mix,
and its success taught Nordstrom a
lot about moving fast and
accommodating new merchandise
almost daily.
HAUTE LOOK &
SOLE SOCIETY
Nordstrom’s foray into online flash sales and shoe fashion “clubs” has
added a whole new tier of retail. HauteLook, which Nordstrom bought in a
deal valued at $270 million, taps into the exciting world of flash sales,
where women race to purchase discounted designer items online before
they sell out. The site remains as HauteLook.com although a keyword
search on Nordstrom.com will bring consumers there.
Sole Society was created by Nordstrom-owned HauteLook and became
an independent entity in December 2011, with funding from a number of
investors including Nordstrom, Inc., Insight Venture Partners and Lagovent
Ventures. Nordstrom recently threw some financial muscle behind Sole
Society to further develop it. Nordstrom did this with HauteLook cofounder Brett Markinson and shoe heavyweight Camuto Group.
While consumers must “join” the club on Solesociety.com, consumers
can purchase Sole Society shoes directly from select Nordstrom stores and
online at Nordstrom.com. The pairing is mutually beneficial, as consumers
can now buy Sole Society shoes in a traditional retail setting, and
Actress and
dancer Julianne
Hough and her
Sole Society
collection
Nordstrom consumers can tap into Sole Society extras like styling tips and
photos by its Fashion Insiders.
This past February, Sole Society launched its first celebrity capsule
collection—with actress, singer and dancer Julianne Hough. She will
introduce five to six styles per month for six months, starting at $49.95.
According to reports, the day the Sole Society brand launched on
Nordstrom.com, SoleSociety.com saw a 1,000% spike in traffic.
Another collaboration was the launch of the CFDA/Vogue Fashion
Fund boutique, which launched February 11, 2013 in six locations
nationwide (Seattle, San Francisco, New York, Los Angeles, Chicago and
Dallas). With the exception of New York, where the boutique will reside in
the Treasure & Bond store, all in-store boutiques are in Nordstrom
Designer Departments. All 2012 finalists—A.L.C., Assembly New York,
Jennifer Fisher Jewelry, Illesteva, Wes Gordon, Suno, Giulietta, runners-up
Tabitha Simmons and Jennifer Meyer—and winner The Elder Statesman,
have merchandise represented.
Treasure & Bond sells its
CFDA/VOGUE Fashion
Fund Collection
30 ACCESSORIES
EXPANSIONS
Nordstrom is moving on up… and out-and-about… and expanding
its off-price territory
NORDSTROM
RACK
This off-price sector of the company
is racking up sales… big time
Y
ou don’t get to be America’s Favorite Fashion Retailer
without a major presence. And at today’s count of 117 fullline Nordstrom and 127 Nordstrom Rack stores, the retailer
has been opening at an impressive clip around the country,
and Puerto Rico and Canada are up next (these areas have
been announced, but aren’t open yet). In the past five years, Nordstrom
opened 18 new full-line stores. From 2013 to 2018, 13 more are planned.
Nordstrom also has plans to span international borders with its firsttime push into Canada. And New Yorkers cheered big-time when
Nordstrom recently announced the end of its “two-decade search” for the
right Manhattan location, even if they won’t break ground for five years.
While 2018 might seem like a long time to wait for America’s
Favorite Fashion Retailer to hit The Big Apple, New Yorkers can get
their Nordstrom shopping fix at Nordstrom Rack in Union Square or the
edgy affiliate concept store Treasure & Bond in Soho. Both illustrate
ways Nordstrom is expanding its positioning strategy to reach new target
markets.
First stop: Canada. Nordstrom is planning five new full-line Canadian
stores between 2014 and 2016; one each in Calgary, Vancouver, Ottowa
and two in Toronto. The largest location will be in Vancouver, where, at
about 230,000 square feet, the three-level store will be bigger than a WalMart supercenter, according to reports.
“This is a significant milestone for this company,” said Blake
Nordstrom, president of Nordstrom Inc., during a recent press conference.
“We are very excited about this opportunity to be part of the country.”
But while Canadian customers speak English and reside adjacent to
our own borders, Nordstrom conceded there will be a learning curve.
“We are the new kids on the block, and there’s a lot to learn,” he added.
“There are cultural differences.”
Nordstrom’s foray north will be in good company. Retailers like J.
Crew, Topshop, Anthropologie, Express, Tory Burch, Ann Taylor, Loft
and Target have either recently opened stores in Canada or are planning
some soon. Nordstrom also noted that the retailer has 15,000 credit card
customers from Canada to date, and envisions Nordstrom operating as
many as nine Canadian stores.
But if full-line store openings are making news, Nordstrom Rack
expansions are stealing the headlines.
32 ACCESSORIES
Growing at a faster rate than full-line stores, the company’s 127 offprice Nordstrom Rack stores are the shining stars. In recently released
1Q 2013 news, Nordstrom Rack net sales increased $58 million, or
10%, compared with the same period in fiscal 2012, reflecting 16 new
store openings since the first quarter of fiscal 2012. Same-store sales
increased 0.8% for the Rack on top of last year’s same-store sales
increase of 6.8%.
When looking at the numbers, not only does Nordstrom Rack have
more stores, but the company is opening them faster than full-line
Nordstrom doors as well. This year, Nordstrom plans to relocate one
full-line Nordstrom department store and to open 24 Rack stores (two
of which are relocated Racks), according to its financial statement. Six
more Racks have been announced for 2014.
Nordstrom
Rack hails
itself as a
treasure hunt
destination
That underscores a larger strategy for the luxury retailer, which is
closely eyeing its fast-fashion and off-price successes and assessing how
to maximize them in its future expansion push.
Why is a luxury retailer showing such great growth in its off-price
division? Because consumers who want high-end merchandise have
shown they still have a strong affinity for a bargain, even if they have to
hunt a bit for it. In fact, that could be part of the fun. The Nordstrom
brand also carries considerable cache, and as investor newsletter “The
Motley Fool” recently noted in a report, weakened competitor JCPenney
could boost Rack sales even further.
Nordstrom Rack offers many of the same brands carried in Nordstrom
stores with most at savings of 30% to 70% off. Rack stores are designed
to be self-service with merchandise organized to make it easy for
customers to shop.
Additionally, Nordstrom Rack offers merchandise transferred from
Nordstrom full-line stores. While the merchandise mix changes with
every new truck arrival, the retailer strives to keep two things constant:
incredibly low prices on great brands and Nordstrom’s high level of
customer service.
Because of the long-standing relationships Nordstrom has with top
brands, Nordstrom Rack can offer special items from these brands at
exceptional prices. Customers can also find overstock items, closeouts
and end-of-season merchandise from many of these same vendors.
“The Rack provides us a unique opportunity to connect with
consumers who shop the Nordstrom Stores and also shop the Nordstrom
Rack stores,” says Dora Yarid, regional VP of sales at Fossil, a brand that
sells both stores. “So the brand loyalty built by the consumer’s experience
in the Main Stores transfers to the Rack.”
Nordstrom operates 127 Rack stores in 30 states. By geographical area,
there are 19 stores in the Northwest (CO, ID, OR, UT, WA); 40 stores in
the Southwest (AZ, CA, HI, NV); 40 stores in the Central States/South
(AL, FL, GA, IL, IN, KS, MI , MN, MO, OH, TX); and 26 stores on the
East Coast (CT, DC, MA, MD, ME, NC, NJ, NY, PA, RI, VA).
34 ACCESSORIES
In-store signs
acknowledge
that the hunt is
half the fun
A loft-like
setting and
funky displays
add to the
unique
ambience
TREASURE & BOND
A charitable model under an ‘alias’ gives Nordstrom inroads into New York City
with a different angle
While Nordstrom has desired to open its own full-line department store in
Manhattan for years, the closest the Seattle-based retailer has come is
opening an off-price Nordstrom Rack on Union Square.
And when it did open a store, it didn’t exactly carry the Nordstrom
nameplate.
Treasure & Bond, which opened in 2011 in Soho, is unlike anything
else under the Nordstrom umbrella. The 11,137 square-foot-store, located
at 350 West Broadway, gives no hints to its Nordstrom connection.
The concept shop is focused on an entirely different model—charity
and edgy, often emerging, designers.
Pete Nordstrom, president of merchandising for Nordstrom Inc., said
Treasure & Bond’s inventory, which included 150 brands on opening day
from gift and home goods to women’s, men’s and children’s apparel, is
all “curated from resources all over the globe,” with 100% of the
proceeds going to New York City charities.
The company said Treasure & Bond’s concept came from an idea
Vogue editor Anna Wintour and the New York philanthropist Catherine
Marron came up with. In keeping with its nonprofit nature, many of the
fixtures and materials are reused from other Nordstrom stores.
Proceeds benefit charities that help New York children, such as The
Edible Schoolyard NYC, The Achievement Gap Project, and the
Association to Benefit Children (ABC). After the first year, selected
beneficiaries will come from shoppers’ selections.
At press time, there was a Rebecca Minkoff pop-up shop featured in
the window, drawing in customers looking for a big-name brand. Inside,
accessories are grouped by theme (i.e. ethnic-inspired straw hats and bags
like minaudieres by Kotur or hand-woven Banago totes from the
36 ACCESSORIES
Philippines. Jewelry is edgy and eclectic, from designers like Gemma
Redux or Fallon. Home accessories have a strong presence too, from
beautiful candles to elegant couch pillows.
A lively blog keeps consumers connected to the stories behind the
brands, such as Isaro by Jill Golden and her recent partnership with
Indego Africa and a women’s cooperative in Rwanda.
“The designs are mine, which adds a modern twist to the traditional
African craftsmanship of the piece,” says Golden, who notes that each
piece is sold in a pouch of traditional waxed fabric, and the Rwandan
woman who made the piece signs it to help tell the story.
“I love Treasure & Bond,” adds Golden. “And it’s really well
merchandised with such interesting brands. Plus, the fact that all proceeds
go to charity is such an amazing concept. I recently held a training session
for the staff and they were really interested in the Isaro story—we spent a
while talking about the women and my trip to Rwanda. They were very
excited to pass on the information to their clients. It is my hope that
Treasure & Bond customers come to the collection for the design, but
when they hear about the Fair Labor component, it makes them want it
even more.”
Other lines introduce international artisans as well, like Japanese bag
and accessories maker Seisuke88, whose printed patterns on their
gamaguchi cosmetics and accessories wallets are inspired by the artists of
Nishijin, Kyoto and their painted designs, dating back over 150 years.
Since the concept is non-traditional, much of the merchandise gives the
retailer the chance to be more scrappy and nimble, according to
Nordstrom, who added that some merchandise is one-of-a-kind and often
the work of emerging designers.
SAVVY GOES
FAST-FASHION
A Savvy department revamp is helping Nordstrom court a new customer
L
ike all smart retailers, Nordstrom is moving ahead with the
times. And that means courting a customer who is into fastmoving trends and likes to spend often (albeit not a lot). In a
savvy move, Nordstrom had already named its trend
department Savvy, but in another savvy move, it recently
revamped it to include less expensive, edgier clothing and accessories.
The revamp was done after the Trend Accessories Departments were
introduced, so this is one more layer on the trend theme, here done with
apparel and accessories.
Now, all 117 of Nordstrom’s full-scale stores have a new Savvy
38 ACCESSORIES
department, which brings in new merchandise almost daily, echoing a
formula from other low-priced, fast-fashion retailers.
To make sure its luxury consumers remain happy, Nordstrom didn’t
drop higher-end labels such as DVF, Rebecca Minkoff, Haute Hippie and
Marc by Marc Jacobs, but rather moved them out of Savvy and into other
departments. This opened up space for new affordable brands like
MinkPink, ASTR, Mural and Vena Cava’s diffusion line Viva Vena.
Now in Savvy, mostly everything is priced from $19 to $98. Before,
everything was over $100. Accessories mingle with apparel, like on
boldly accessorized mannequins. At the downtown Seattle Nordstrom,
this is the caption for the above photo
for example, $18 woven-leather bracelets and under $40 earring-andnecklace sets are placed around $36 tops or $78 “boyfriend jackets.”
“One of the things that we heard from our customers for a number of
years is, ‘Boy, the stuff we love we can’t afford, and the stuff we can
afford we don’t like too much,’” said Nordstrom chief financial officer
Mike Koppel at a recent investors’ conference. “We felt that we had an
opportunity to have better product that was more accessible.”
While the Savvy revamp came after the successful collaboration with
40 ACCESSORIES
British fast-fashion retailer Topshop, the idea actually came first.
However, Topshop’s success taught Nordstrom a lot about fast-fashion
and how to accommodate merchandise on an almost daily basis.
The Nordstrom website recently launched the “premiere issue” of The
Savvy Mag, featuring various trends and snapshots. Banking on the fact
that web consumers still love the “idea” of a magazine, even if it’s no
longer paper, the company produced a shoppable magazine with the
trends clearly spelled out.
JUNIORS
Nordstrom knows how to talk to
teens—through music, photo-heavy
blogs and lots of DIY tips
W
hile Nordstrom has stepped up its Trend
Accessories departments, targeting accessoriessavvy women of all ages, the stores’ designated
junior areas have plenty of trend accessories in
their
own right. BP., as the
junior department is
called at the company,
knows what teens love
and that’s definitely
accessories.
The department has
tons of accessories, neatly
grouped into itemy-trends
(infinity scarves, fedora
hats, plastic sunglasses
and tons of jewelry). A
recent store visit showed
a Southwest vibe, with
lots of self-assured
mannequin attitude.
On the BP. section of
Nordstrom.com, You
Tube clips show key looks in video, like sunglasses and short shorts in
action at a skateboard park. This helps the consumer envision the items in
their everyday life.
But BP. doesn’t just show the trends to consumers at the store, it
engages them where they play as well. At the recent Coachella festival in
California, BP. teamed up with FOAM Magazine and clothing brand
Mimi Chica for a major desert party (complete with inflatable pool
floaties that looked like iced doughnuts). It was blogged on the site,
naturally, with links to some cool Nordstrom items purchased for the trip,
like round sunglasses by Fantas-Eyes, retailing at just $12.
Naturally, BP. has a very dynamic blog, updated almost daily by BP
fashion board members.
While the BP. Fashion Blog certainly offers consumers the opportunity
to purchase items on Nordstrom.com that are blogged about, it’s not as
overt as that. The idea is to entice, educate and engage an increasingly
media-savvy target market.
One feature on vintage shopping in mom’s (and grandma’s) closet
yielded a treasure trove of vintage bags. And while the link to Dooney &
Bourke bags at Nordstrom referenced the vintage Dooney bag shown in
the Instagram photo, those particular bags weren’t even for sale. The idea
was to introduce the brand in a creative way.
The site also knows how to engage its media-savvy customers. The
BP. Fashion Blog has articles written by customers, such as “Adventures
as a Sophomore Slave,” where the writer blogged all about her school’s
42 ACCESSORIES
prom, complete with photos of her classmates and commentary on their
fashion and accessories (i.e. cobalt blue; tiaras).
There are also lots of DIY features, which teach BP consumers how to
do things like efficiently (and fashionably) store their sunglasses. The
article is a step-by-step outline to fashioning a stylish sunglass holder,
with the subtle message that one would need to buy sunglasses soon (hint,
hint) to fill it up.
And Brass Plum knows that juniors are watching the fashion shows
more than ever before, so one blog post featured bows as a hot off-therunway item, complete with options and ideas on how to wear them.
To really appeal to teen-obsessed fashionistas-to-be, BP. also has a
Fashion Board for fashion-savvy and fashion-inquisitive high school
students. Applicants interview at their local store, and once chosen, form
a group that meets once a month after school to learn about and network
within the fashion industry. Fashion insiders at the store and industry
experts offer the ins and outs on trends, careers, styling and more.
E-COMMERCE
& MOBILE
For a large, traditional retailer, Nordstrom.com thinks, moves and acts
progressively and aggressively, from its website to its mobile apps
Left: Nordstrom’s iPad icon. Right: a screen shot from the iPad app.
N
ordstrom Direct operates nordstrom.com, the company’s
mobile shopping apps and Nordstrom catalogs.
Nordstrom.com currently serves customers in 95 countries
and offers everyday free shipping and free returns within the
US.
Direct sales, which is virtually all online, is on fire at Nordstrom and a
huge part of Nordstrom’s strategy moving forward. “E-commerce is the
fastest-growing channel and it is expanding our reach to existing and new
customers. We see substantial opportunities for outsized growth to
continue as we further improve the online customer experience,” says
president Blake Nordstrom in a year-end earnings call to analysts.
Online sales are a huge part of the company’s overall strategy and
indeed are outpacing store results.
“We are an e-commerce leader in fashion retail,” says Margaret Myers,
EVP/GMM. “We’ve made big strides in growing our online selection and
service capabilities. And unlike some retailers that employ a separate
buying and merchandising staff for in-store and online businesses,
44 ACCESSORIES
Nordstrom uses the same team for a seamless shopping experience.
Nordstrom has also expanded its online offerings by 50%, according to
the firm, putting the online merchandise on par with what’s in-store.
Meanwhile, online sales are booming (surpassing $1 billion last year,
buoyed by impressive investments in online and mobile ). Nordstrom also
remains tech savvy and aware of shifts in consumer behavior. As
mentioned earlier, in 2011, it became the first mainstream retailer to
purchase an online flash-sale company.
Overall sales grew by 12.1% year-over-year with e-commerce
achieving an impressive 37% growth. Nordstrom also ranked #28 in the
Internet Retailer Top 500 for 2013.
“Over the last few years, Nordstrom has expanded accessories space
in new stores and ongoing store remodels to respond to how our
customers are shopping and to expand the offering itself, but we’re also
excited about how the limits of walls of the store disappear when we
expand our offer online beyond what a store can present,” says Myers.
“We expect our customers to get the best of both worlds—a curated offer
in stores and a much broader offer online. The suppliers who have
worked with us in this way are reaching more Nordstrom customers with
more of what they offer.”
APPS
Fashionable women are increasingly using their mobile smartphones to
research, browse and make purchases, and Nordstrom has definitely taken
notice. The retailer has had a mobile commerce site since 2009 and rolled
out its smartphone app in late 2011.
“On an average day, more than 100,000 unique customers access
Nordstrom on a mobile device, with nearly twice that amount during the
holidays,” Blake Nordstrom told analysts. In 2012, sales from a mobile
device accounted for over 20%—more than $260 million—of Nordstrom
Direct’s total sales, he said, compared to less than 4% in 2010.” And
these numbers don’t even include HauteLook sales.
According to app-rater Xtreme Labs, Nordstrom’s app was ranked as
3rd highest rated retail app on Android devices.
Nordstrom’s overall 2012 strategy was heavily weighted toward ecommerce and included building out its information technology
infrastructure, enhancing customers’ web and mobile experience,
expanding online merchandise selection, and adding to the functionality
of mobile point-of-sale devices and expanding their deployment in fullline and Nordstrom Rack stores, Nordstrom said.
Congratulations
NORDSTROM
for being named
Retailer of the Year!
The Dressing Room feature lets customers create ever-changing,
fully accessorized looks
Nordstrom recently invested approximately $150 million in 2012
on infrastructure improvements, including:
• Enhanced search, navigation and checkout
• Updated recommendations
• 360-degree video on certain web site product pages
• 50% expansion of product availability and selection
• Mobile site and app upgrades
“We’ve improved the speed of fulfillment and delivery and we
provided early access online to our anniversary sale,” Nordstrom said.
“Going forward, we plan to further elevate the shopping experience with
features that provide more interaction and personalization.”
Launched last summer, Nordstrom’s new iPad app offers a simple, fast
and intuitive way to browse and buy merchandise, and Nordstrom will
introduce additional features and functionality with subsequent updates. A
few of the unique features available with launch of the app include:
• The Dressing Room: This feature offers customers an interactive way
to create and save multiple looks by double-tapping or dragging items to
the Dressing Room canvas. Customers can resize images, add or delete
items, and view product details to create up to 75 unique looks. Items
placed in the Dressing Room can then be instantly added to the
customer’s shopping bag.
• Customizable Homepage: Customers can personalize their homepage
by selecting which departments they would like to see on their home
screen, including the ability to view items from their Dressing Room as
well as Nordstrom catalogs.
• Social Sharing: The Nordstrom iPad app makes it easy for customers to
instantly share any of their favorite products via Facebook, Twitter, or
email.
45&3-*/(4*-7&3t$)*-%3&/4
45"*/-&4445&&-t#0%:+&8&-3:
'JOF+FXFMSZGPSBMMBHFT
XXXUPNBTKFXFMSZDPN
46 ACCESSORIES
YOUphoria
Nordstrom’s new online
ad campaign targets a
younger, hipper audience
‘‘I
t’s not where you’re going, it’s how you get
there.” Such is the voiceover on one of
Nordstrom’s series of 30-second online ads aimed at
a young, cool customer.
The tagline: “Youphoria. It’s more attainable than
you think. Find yours at Nordstrom.”
The “Youphoria” campaign is just part of Nordstrom’s
ongoing expansion into the youth market (i.e., a revamped
Savvy Department, its partnership with Topshop) and its new
High/Low positioning of mixed-price offerings.
The ads, created by Mekanism, have a distinct message: Great
style from Nordstrom can help you build a character that is
uniquely your own. They are housed on Nordstrom’s YouTube
channel and promoted via its various social media sites.
In the ads for women, one shows a young woman squirting
lighter fluid onto a bonfire, while a raccoon-suited man dances
behind her. “Some people light a fire with two sticks,” says the
voiceover. “You light it with a laser-cut mini, black leather moto
jacket and an arm stacked with bangles. Because you’re not a
woodsman, you’re a lady, with a bottle of lighter fluid and a
mission to party.”
The third video depicts a woman riding down a hill on a
motorbike. The voiceover? “It’s not where you’re going, it’s
how you get there. Cotton lace sundress. Strappy metallic
stilettos. Something sparkly. And a smirk that says, ‘Yes, you
have that right. I am piloting a minibike through life.’”
The ads are targeted to the 25-to-35 year old consumer and
ran through May in six major markets.
Nordstrom spent more than $36 million on advertising last
year, Michael Crotty, Nordstrom’s vice president of marketing,
told The New York Times, nearly all of it on digital media.
“Digital advertising helps the company find a lot of new
customers online and in-store. Somewhat younger customers
respond really well to digital messages.”
48 ACCESSORIES
#ENGAGING
THE CONSUMER
N
ORDSTROM IS ALSO ENGAGING SOCIAL MEDIA TO CALL OUT TRENDS.
And as trendy consumers tend to also be young and media-savvy, the company has incorporated cool videos and a hashtag
campaign to get consumers to post their own trend shots.
“All on the Wrist,” for example, is a two-and-a-half minute video that shows a beautifully hip model getting ready for the
day, typing on her laptop, and of course, her phone. As she piles on her various bracelets, they jingle in beat with the
sountrack’s organic rhythm of everyday items (think: “Stomp”). At the end, the call to action is “Show Us Your Knack to Stack
#STACKEDWRIST.” And indeed, there are endless photos on Twitter and Instagram under hashtag #stackedwrist.
“The Stacked Wrist initiative allows Nordstrom to demonstrate their merchandise online with a story on trends and show ways to wear the
product,” notes a watch vendor.
Beyond the video, however, Nordstrom also has eight slides that show bracelets fitting all the different trends of the season, from Punk to
Deco to Craft. It’s about identifying a trend, making it your own, then sharing it with the world. All courtesy of Nordstrom.
50 ACCESSORIES

Here - Accessories Magazine

Transcription

Similar documents

join nordstrom rack

Home Ideas.2.6 - Nordstrom`s Automotive

bp. fashion board

THE LIS(Z)T - Seattle Symphony

Join us for the2016 Distinguished Alumni Speaker Series

Fashion: Up Close - Chicago

O`News – November 2014 - WE O`Neil Construction

Texas Monthly - Penny Sadler