Who Are Nordstrom's Main Competitors?

Nordstrom is a high-end department storꦫe offering fashion, shoes, and accessories for men, women,ꦇ and children.

While it generates the majority of its income from retail sales, its Nordstrom-branded VISA credit cards also generate some revenue for it. Retail sales and credit cards are the store's two business segments.

Nordstrom operates 376 Nordstrom and Nordstrom rack stores in the U.S.

It has notable competitors in the retail industry that offer high fashion in a similar department store format. They include Macy's (M), Dillard's (DDS), Neiman Marcus, and Saks.

In October 2024, Nordstrom had a market capitalization of $3.59 billion.

Understanding Nordstrom

High-Quality Customer Service

Ranking highly in popularity surveys among fashion-focused consumers, Nordstrom (JWN) is known by many customers for its exceptional 澳洲幸运5官方开奖结果体彩网:customer service.

Competitors have placed a stronger emphasis on personal service since seeing ♍the results Nordstrom achieved by co✱nsistently treating it as a growth strategy.

Nordstrom consistently ranks highly in customer service surveys. In virtually every year of the American Consumer Satisfaction Index, Nordstrom ranked as the consumer fashion retail industry leader in service quality. Customer service has proven to be a 澳洲幸运5官方开奖结果体彩网:competitive advantage for the store.

The store has sought to introduce innovative ways to engage with consumers to build and strengthen customer relationships. For instance, the Nordy Pod, a podcast hosted by the company's president, Pete Nordstrom, delves into fashion and design topics, and personalities of interest to Nordstrom fans.

Focus on Online Shopping

The noteworthy growth of online shopping has meant that retailers that focus on the online customer experie꧋nce can increase their potential to buil🌃d sales, obtain new customers, and retain existing customers.

Nordstrom plans to continue to invest heavily in online technologies and order fulfillment. Improving store inventory systems so that they function seamlessly with online retailing has improved company sales and provided a competitive advantage over Macy's and Saks.

Credit Cards

Nordstrom 澳洲幸运5官方开奖结果体彩网:credit cards are used by the company to support retail sales and build store traffic. The luxury retailer operates a national banking segment offering Nordstrom 澳洲幸运5官方开奖结果体彩网:VISA cards, a VISA debit card, and a private label card that can only be used in Nordstrom stores, Nordstrom Rack stores, or online at Nordstrom's website.

Any merchant that uses VISA accepts Nordstrom VISA cards, so Nordstrom VISA cards compete directly with other VISA card brands. This segment of Nordstrom includes a rewards program designed to encourage shopper loyalty and bring Nordstrom cardholders into the store.

Shoppers with a rewards membership may✱ receive a variety of benefits when shopping in the store, such as free alterations to clothing purchases﷽.

Nordstrom's Main Competitors

Macy's

Macy's, Inc. (M), is a well-known retail organization that began in 1858 as a dry goods store in New York City. It retails clothing and accessories for men, women, and children, as well as cosmetics, kitchen goods and other home furnishings, and various other consumer goods. Its three brands are Macy's, Bloomingdale's, and Bluemercury.

Like Nordstrom, Macy's sells products in stores, on websites, and through its mobile apps. Its online platforms are designed to make shopping easier and more convenient for customers. Unlike Nordstrom, Macy's has closed a number of stores since 2020, with the intention of cutting costs and transacting more sales online.

Macy's offers a private label credit card, an 澳洲幸运5官方开奖结果体彩网:American Express credit card, and a rewards program.

Macy's also focuses on maintaining its high-quality customer focus and service. However, Macy's offers a range of brands and price points that attract shoppers with large and small budgets. Nordstrom has stuck to its luxury offerings for those shopping for premium goods at premium prices.

In 2024, Macy's had a 澳洲幸运5官方开奖结果体彩网:market capitalization of $4.24 billion.

Dillard's

Dillard's, Inc. (DDS) of Little Rock, Arkansas was established in 1938. It is a family-owned retail company with department stores across the south and in the midwest.

Its stores sell a variety of upscꦰale consumer goods including fashion apparel for women, men, and children, accessories, cosmetics, and home furnishings.

Dillard's offers a private label credit card, a 澳洲幸运5官方开奖结果体彩网:MasterCard credit card, and a rewards program.

Dillard's operates around 300 stores in 29 states. It practices the philosophy instilled by its founder, William Dillard, of "sound selling methods, keen attention of day-to-day organizational details, alert selection of personnel and hard work."

In October 2024, Dillard's market capitalization was $5.93 billion.

Neiman Marcus and Saks Fifth Ave

Neiman Marcus

Neiman Marcus sells a range of high-end apparel, accessories, beauty products, home furnishings, and u♊nique gifts to well-heeled consumers.

The company was founded in 1907 in Dallas, Texas. It has maintained its long-time goal of providing luxurious goods along with excellent customer service and strong, long-lasting customer relationships.

It offers a private label credit card and a 澳洲幸运5官方开奖结果体彩网:rewards program. The company also has a website and highly-ra♛ted mobile app.

Saks Fifth Ave

Saks Fifth Avenue was founded in 1924 and, like Neiman Marcus, is a purveyor of luxury apparel brands for men, women, and children♉, as wellಌ as accessories, beauty products, home furnishings, and gifts.

Saks is owned by the holding company, HBC. Sak's e-commerce presence began in 2000 when it launched its website. In 2021, its online business became a separate company called Saks. The overall goal is to provide an exceptional customer experience to its loyal customers, whether through stores or online.

Saks offers a private label credit card and a rewards program. In addition to i🐓ts website, the company offers a mobile app for convenient, on-the-go shopping.

Saks-Neiman Marcus Merger

Privately-held HBC announced in July 2024 that it would acquire Neiman Marcus for $2.65 billion. The new company, Saks Global, will face off with the companies considered to be its main rivals in the luxury market, Nordstrom and Macy's.

Market watchers feel that, as a result of the merger, Nordstrom may have a valuable opportunity to welcome those Neiman Marcus customers who prefer, and are used to, superior customer service.

It's suggested that some may become disenchanted with Saks Global if the seeming "sales first" philosophy of HBC chairman and CEO Richard Baker overtakes the once storied personal service provided by Neiman Marcus personnel.

The Bottom Line

Nordstrom is a retailer of premium apparel and accessories for women, men, and children. It is heralded for its superior level of customer service. Its main competitors in the retail space are Macy's, Dillard's, Neiman Marcus, and Saks.