Nordstrom Announces New Women's Apparel and Brand Strategy Based On Customer Feedback

Business Wire, Feb 17, 2000

Business Editors, Fashion Writers

SEATTLE--(BUSINESS WIRE)--Feb. 17, 2000

-- Retailer Reorganizes its Women's Division to Provide More Modern

Merchandise; Realigns Store Departments to Enhance

Shopping Experience --

Fashion specialty retailer Nordstrom Inc. (NYSE:JWN) today announced it has reorganized its women's apparel division and will feature more modern and casual merchandise in addition to its classic offering.

The new strategy was developed after an 18-month brand audit and analysis of its women's product mix. Store environments have also been updated to make departments easier to navigate and enhance the shopping experience.

&uot;These changes are a direct result of what customers told us they wanted and we think they'll respond positively to the expanded offering,&uot; said Executive Vice President of Full Line Stores Marty Wikstrom. The new Women's Apparel strategy was developed after an 18-month brand audit that included interviews and focus groups with customers as well as the development of a new corporate brand strategy designed to increase same-store sales and market share for the long term.

Based on research gathered from the brand audit, Nordstrom has restructured its women's apparel division into four main taste segments -- classic, mainstream, modern, and forward. The classic and mainstream merchandise categories will each account for approximately one third of the total women's offering, with modern and forward accounting for the remaining third. The shoe division underwent a similar restructuring last fall and has already experienced increases in same-store sales.

&uot;This new strategy will allow us to emphasize our strongest lines, edit out less successful ones, and reassert our fashion authority,&uot; said Wikstrom. &uot;A larger offering of modern merchandise that will be an important complement to our existing classic and mainstream business.&uot;

The women's apparel buying teams have also been reorganized based on the classic, mainstream and modern/forward taste segments and by price point. The retailer has created a national lead buyer position, called product market leader (PML), which has total merchandising accountability within their specific merchandise segment for all full line stores. The product market leader now leads a team of national merchandise managers who will be responsible for specific vendors within their taste and price segment. Regional merchandise execution teams are responsible for the store level implementation of the buying team's vision through merchandise presentation, promotions and events.

A key initiative in the new strategy has been refocusing Nordstrom's private label brands within taste segments. &uot;Our private label brands are a critical point of difference for us and they offer our customers the highest quality fashion at very competitive prices,&uot; said Wikstrom. Nordstrom's key private label brands include Classiques Entier, Preview, Halogen, Faconnable and Callaway Golf Apparel by Nordstrom. The company will also launch a new line this spring, Talora, which will have more classic styling and timeless silhouettes at bridge price points.

Beginning in January, all 71 full line Nordstrom stores nationwide began realigning their women's areas to create more boutique-like settings where customers can quickly find the merchandise they prefer. Some of the retailer's current &uot;lifestyle&uot; departments have been relocated within the store to better align with the four key taste segments.

Other changes to the store environment will make shopping more stimulating and navigation easier for customers. Visual cues, such as lighting, new fixtures, and a bolder use of color will help define different areas. New music selections for each area will also be implemented. Nordstrom will continue to offer its signature piano music in its classic departments.

In support of the new women's apparel strategy, the company has added several new technologies and processes to its supply chain in recent months that have improved merchandise delivery from vendors to stores. New developments in tracking profitability by vendor and product will also enable buyers to develop more strategic partnerships.

Nordstrom will launch a national brand advertising campaign in late February, the largest undertaken by the company in its 99-year history. The new campaign represents a major shift in strategy from merchandise-driven newspaper advertising to national TV and magazine advertising to build awareness for the Nordstrom brand. The TV campaign begins Feb. 21 and magazine ads begin in March issues of fashion and consumer publications. A billboard in Times Square began Feb. 11 in New York City. The campaign was created by Minneapolis-based Fallon McElligott.

Nordstrom Inc. is one of the nation's leading fashion specialty retailers with 104 stores located in 23 states, including 71 full-line stores, 27 Nordstrom Racks, three Faconnable boutiques, two free-standing shoe stores and one clearance store. The company also serves customers through its online presence at http://www.nordstrom.com, as well as with its three direct mail catalogs. Nordstrom Inc. is publicly traded on the NYSE under the symbol JWN.