Wednesday, May 10, 2000
A closer look at Nordstrom
The Cincinnati Enquirer
Nordstrom, the Seattle-based department store chain, has dominated headlines the past week or so because of its interest in Greater Cincinnati — both downtown and in Warren County's Deerfield Township.
Here's a closer look at the retailer, its interest in the Tristate and what experts say about its chances for success.
Question: Why is Nordstrom so coveted?
Answer: Cities compete for Nordstrom because the retailer's air of affluence make the city more desirable for other tenants, and for out-of-town visitors. Nordstrom is a magnet for desirable retailers, including J. Crew and high-end furniture chain Restoration Hardware.
Q: What separates Nordstrom from such stores as Lazarus or Dillard's?
A: Nordstrom's merchandise is considered more upscale — falling between Dillard's and Saks Fifth Avenue. It also has earned national attention for its customer service and selection of shoes.
Q: Because of increased competition, has Nordstrom changed the way it does business?
A: Absolutely. For one, the piano player in some stores has been demoted. For nearly 20 years, Nords trom's tuxedo-clad players have held center stage at its stores. Now, in some stores, the pianist has been pushed to a distant corner, not far from expensive ball gowns and evening dresses. The move is part of a larger plan to infuse energy and youth into the stores.
To win back customers, Nordstrom has revamped its women's apparel departments by introducing more casual and trendy fashions, using mannequins to suggest how outfits might be assembled and changing wall colors to suit the seasons.
Q: Have there been other merchandising changes?
A: Yes. In fact, the retailer spent 18 months reviewing its operations before embarking on a new look designed to allow Nordstrom to reassert its fashion authority. The store added two private-label apparel lines, updated others and even pushed out less-successful ones.
Q: Why did shoppers suddenly grow cool on Nordstrom?
A: Consumers said they appreciated Nordstrom's reputation for superior customer service but found its stores difficult to navigate and filled with uninspired merchandise.
Q: Have there also been management changes?
A: Yes. Nordstrom has centralized its far-flung buying operation, cut jobs and discharged a management structure that called for six members of the Nordstrom family to serve as co-presidents.
Q: How has the company's stock performed?
A: Since moving to the New York Stock Exchange from the Nasdaq National Market last summer, Nordstrom stock spiraled down — like most retail stocks — and bottomed out at $19.561/4 in February. While a short recovery took the stock price back up to $33.75 last month, it's still trading nowhere near its 52-week high of $38.811/4 of last summer. Shares of Nordstrom on Tuesday closed at $28 on a volume of 308,500 shares.
Q: Why would Nordstrom be interested in Cincinnati?
A: Company officials have said that Nordstrom would like to open a store in Cincinnati as part of its effort to open a store in each of the country's top 50 markets.
Q: Is Nordstrom already in the region?
A: The company in 1997 opened a store in suburban Cleveland's tony Beachwood Place mall, which includes a Saks Fifth Avenue. Next spring, it plans to open a store at a mixed-use development north of Columbus called Easton. Many Tristate shoppers are familiar with Nordstrom's Circle Centre Mall store in downtown Indianapolis.
Q: Why would Nordstrom want to go to Warren County?
A: Executives love the demographics of Cincinnati's northern suburbs. Not only is Warren County the second-fastest growing of Ohio's 88 counties, its new residents are younger and have money, or “disposable income.”
Q: If this Rouse mall is built in Warren County, it would give the Tristate eight malls, including Towne in Middletown. Can this market support another one?
A: We posed that question to Stan Eichelbaum, a 30-year retail consultant who has worked in 31 countries for developers, retailers and cities. He predicts Rouse could be successful.
“The Cincinnati market has not had a new center in over a decade. (The last new mall was Forest Fair, which opened in 1989.) Consequently, if someone comes in with new retailers and a new format ... shoppers will respond.”
Q: Wherever it lands, will Cincinnati shoppers support Nordstrom?
A: Our experts insist Nordstrom will be a success. Because of suburban sprawl emanating from Columbus, Dayton and Lexington, Cincinnati has the potential to be a hub for out-of-town shoppers and tourists.
Deefield ponders/Nordstrom's cost
RADEL: Price tag
A closer look at Nordstrom
City council concerned about Warren store
KIESEWETTER: $30M contract proves Springer's resilience
A.M. REPORT
Auditor waives right to jury for trial
Big Game a big drain on Ohio Lottery
Chiquita's Hagin joins Bush staff
Elie Wiesel looks for meaning
Ex-school official denied in Ky.
Get to it
Getting tough on child-support payments bringing results
Kings schools ready to build
Lebanon city manager's actions probed
Man sought in drug thefts
Monroe measure aims to restrict Bristol's
Nuclear workers aid plan offered
Oxford EMS gets due thanks
Plan OK'd to divvy Middletown, Monroe teachers
Professor: Book overstates lack of objectivity
Robbery case goes to court
Six schools add social services
Springdale schoolkids take hands-on approach
Sundae raises spoons, awareness
Tax case fallout causes worries
Teen to be tried as adult in killing
The Arts Life: A theater is born
Queen City's moments to shine reflected in book
