Chapter 7: International Strategy

As the retail industry becomes more globally connected, Nordstrom has increasingly adapted to consumers' demands. Through many different methods, Nordstrom has created value within the global market making them a brand that stands out both domestically, but also penetrating into the international market. One of the major improvements that Nordstrom continues to mold is their online shopping option. Consumers are given multiple options of how to pay for the items. Specifically, Nordstrom provides an accurate time of delivery and the option to pay in multiple different currencies. Nordstrom has partnered with Borderfree, which provides e-commerce globally to offer international shopping. Borderfree ensures that consumers are offered a precise and detailed transparent breakdown of the cost of the merchandise, tax, shipping, and other fees. Nordstrom has successfully become aware of currency risks and taken a proactive approach to these type issues. Nordstrom has focused on adapting the online shopping to both ensure growth through e-commerce, but also creating excellent customer services, creating a competitive advantage where other retailers are currently failing. Reports from early 2017 display Nordstrom’s e-commerce attribute to about a quarter of their sales, and Nordstrom estimates these sales to grow in relation to in-sale purchases in the coming years.

Although Nordstrom has not taken the opportunity to move into Europe or other continents yet, Nordstrom is reshaping their global position through other methods. Earlier this year, Nordstrom hired a new Chief Innovation Officer to better integrate technology into the company’s strategy. The company hopes to communicate with customers better while bringing in new ideas to focus the company on growth in sales abroad through online transactions. Nordstrom is carefully balancing the growth of consumers’ desire to shop online with exceptional experience of shopping in stores, where the majority of their sales are generated currently. Nordstrom’s international strategy is veered primarily toward online sales currently. Moreover, there has been growth in Canada with the addition of new stores in the last year. Nordstrom’s focus on creating value in the global market through an e-commerce and technology position is narrowly specific; however, Nordstrom is determined to gain attention abroad through online sales in the coming years.