Leader in product
Nordstrom considers itself a leader in product value leading to customer satisfaction. For instance, a section its 2004 annual report notes the importance of giving value to customers by suggesting that “it takes an incredible team to offer a shopping experience that is so satisfying for very many customers (Nordstrom, Inc. Annual Report 2004). To achieve the high quality standards, Nordstrom’s workforce that includes designers, tailors, merchants, and a sales force that have to work as a team to achieve desired results (Nordstrom, Inc.
Annual Report 2004). According to Nordstrom, the staff work hard to inspire each customer and are pleased to get feedback from the customers that indeed they are satisfied with the services and products at their stores (Nordstrom, Inc. Annual Report 2004). The 2004 annual report also notes that the great shopping experience at Nordstrom is a result of teamwork- bringing together the creative ideas of innovative people in order to delight customers (Nordstrom, Inc. Annual Report 2004).
In short, Nordstrom combines teamwork and product quality to achieve great customer satisfaction. As a result, attributes such as customer intimacy and operational excellence seek to not only satisfy customers but also maintain the rapport between the chain store and its
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The quoted items are sales per square foot and percentage change in same-store sales, gross profit, selling, general and administrative (SG & A) expenses, earnings prior to income tax deduction, inventory turn, and the value of cash flow operations (Nordstrom, Inc. Annual Report 2004). Each of these measures is analyzed in the following section. 1. Sales per square foot and percentage change in same-store sales According to the 2004 annual report, sales per square foot and the percentage change in same-store sales fluctuated between 2000 and 2004.
In 2000 the sales per foot was slightly high at $ 341 and the percentage change in same-store sales was recorded at a relatively low value of 0. 3 percent. This however declined in following year, the values being $319 for sales per square foot and a negative change in (-2. 9 per cent) in same-store sales (Nordstrom, Inc. Annual Report 2004). The values rose exponentially between 2002 and 2004, reaching a high of $341 in sales per square foot, and a percentage change in same-store sales of 8. 5 per cent (Figure 1).
The se figures indicatet 2004 was year of good performance. Nevertheless, the reason for the fluctuation noticed between 2000 and 2003 in not accounted for in the results and could persist to affect the performance of Nordstrom future if not identified and addresses. In addition, the increase in sales per square foot does not necessarily mean that there was an increase sales but may imply that there was an increase in stock and stock variety, which led to a record of more sales per area of the chain store.