Frank Sinatra’s famous New York, New York song lyric, “If I can make it there, I’m gonna make it anywhere,” normally refers to the entertainment industry. But it’s equally appropriate for retailing. The high rents, demanding customers, and intense competition mean that retailers that want to succeed in the Big Apple need to bring something extra. When they don’t, they are unceremoniously booted off the proverbial stage.
Nordstrom’s gamble to open its first stores in Manhattan is thus both brave and notable. The luxury department store was founded in Seattle and has spread by opening locations in wealthier, suburban locations throughout the country. Although it runs two Nordstrom Rack, its off-price alternative, stores in New York, remarkably, it has never tried to appeal to New York’s shoppers in person.
The gamble is a carefully calculated one. It follows literally years of planning and preparation, and it starts with a dedicated men’s store, with the women’s store slated to follow, in a separate location, in a few years.
In addition to plotting the location and focus of the stores, Nordstrom has invested heavily in designing an in-store experience that will welcome and excite shoppers. Notably, it combines expensive, high-end, designer goods with affordable options from familiar brands. Moving through the store, men encounter Balenciaga Triple S sneakers for $895 but also adidas slides for $20. The combination is purposeful, with the notion that shoppers want some familiar names but also seek style inspiration and hope to encounter unfamiliar, novel, and cutting-edge fashions that they might not find elsewhere.
Particularly, they might not find it during online searches, because they are not familiar with the brand in advance. Along with this ability, Nordstrom is maintaining its well-earned reputation for service, ensuring that anywhere a shopper turns, he can find an expert to offer advice about trends, coordinating items, and fit. The single store employs 16 tailors to provide rapid alterations. Furthermore, if a shopper places an emergency order online—say, an interviewee who needs a tie immediately for an interview taking place in an hour—Nordstrom will send an employee to meet him at the front door with the purchase.
The plans for the women’s store are even grander, including a newly built space, seven stories tall, right across the street.
Discussion Questions:
- What is Nordstrom doing to compete in the hyper-competitive New York City market?
- Do you believe it will be successful? Why or why not?
Source: Michael Corkery, The New York Times, April 8, 2018. See also Jon Caramanica, “Nordstrom Men: Choose Your Own Adventure,” The New York Times, May 9, 2018
Correction: A previous version of this article said that Nordstrom was founded in Dallas. The article has been updated to state that Nordstrom was founded in Seattle.