Migration of Shoppers to the Internet Forces Big Brands to Adapt
Up until last year, the upscale apparel retailer Nordstrom had enjoyed several years of steady sales growth and expansion. Today, the company struggles with the same problems that have plagued numerous department stores across the country.
According to an article recently published by the Orlando Sentinel titled, Why have upscale retailer Nordstrom and other apparel giants lost their luster?, the reason Nordstrom and other department stores like Macy’s and Kohl’s are struggling is due to “a decline in mall traffic, lower consumer spending on apparel, shoppers’ increasing habit of buying online and heightened competition from Internet players such as Amazon.com Inc.”
Despite being known for its exemplary customer service, liberal return policy and in-store amenities, Nordstrom’s “shoppers, especially the millennial (18 to 34) population, [are buying] more clothes and accessories on the Internet. Others are choosing to spend less on apparel or are shopping at lower-price competitors.”
Erik Nordstrom, a Nordstrom co-president, says the ongoing migration of shoppers to the Internet was expected, but the speed at which the shift occurred starting in the second half of last year was not. But he has a solution to the upscale apparel retailer problem: “Quickly adapting to consumers’ changing shopping habits while still offering in-demand apparel, Nordstrom says.”
“The boundaries between physical stores and Internet shopping ‘are just less and less relevant,’ he said. ‘Increasingly customers — even in the same journey — are combining online elements and offline elements’ when they buy clothes.”
The Nordstrom co-president believes that their high level of customer experience should be extended across all platforms, from brick and mortar stores to digital storefronts. “We don’t have online customers or store customers. They’re just customers,” Nordstrom said. “The focus of what we do is always the customer. That may sound obvious, but it is harder than that sounds.”
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