Nordstrom Inc.JWN

Morningstar Rating

Stock Research and Analysis

by Kimberly Picciola

In a crowded and highly competitive department store environment, Nordstrom has broken away from the pack by offering exceptional service and "affordable luxury" goods. Despite its niche and its long-term growth prospects, this retailer has shown it Read more

Bulls Say

Nordstrom has managed inventory levels well during the economic downturn.

After a long history of managing purchases and inventory on a store-by-store basis, Nordstrom has implemented an IT infrastructure that provides the business intelligence management needs to reduce discounting and more consistently stock the products that customers want to buy.

Despite recent successes, management is cautious about expansion and focused on ensuring that existing stores are performing well.

With around 110 full-line Nordstrom stores domestically, the retailer has room to expand.

Nordstrom has differentiated itself from other department store chains with its superior customer service. Read more

Bears Say

The aspirational and affluent consumer remains cautious in spending on discretionary goods.

Several members of the executive management team are members of the Nordstrom family. While their efforts have been fruitful so far, any family feuds may have a negative impact on the direction of the business.

Unlike the other major department store chains, Nordstrom continues to operate its credit card business, adding an element of risk.

Saks is attempting to reposition its Saks Fifth Avenue chain as a retailer of both very high-end and affordable luxury goods. If successful, this could pressure Nordstrom's sales.

A promotional environment will likely weigh on near-term profitability. Read more

Strategy

Nordstrom is trying to weather the economic slowdown by tightening its inventory and controlling spending. The department store chain is working to improve its customer service, provide distinct merchandise, Read more

Management

Members of the fourth generation of the Nordstrom family assumed top management positions in 2000 after an unsuccessful stint of management by outsiders. Blake Nordstrom is president, with brothers Peter Nordstrom and Erik Nordstrom serving in executive Read more

Profile

Nordstrom operates a chain of department stores. It sells high-end apparel, shoes, and accessories for women, men, and children in around 110 large specialty stores and Read more

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