J.C. Penney Co. is struggling to reinvent itself. So is Sears, Roebuck and Co.
Nordstrom Inc. is way ahead of them both.
The Seattle-based chain has spent the past 18 months rejiggering its apparel offerings and reorganizing its buying operation. In the past several months, Nordstrom has rolled out the new look to its 71 full-line specialty apparel stores around the country.
Now it’s telling customers about the changes through the largest advertising campaign in Nordstrom’s history.
The tagline, appropriately enough, is “Reinvent Yourself.”
“People love the way fashion lets them reinvent themselves,” says Linda Finn, Nordstrom’s marketing director for full-line stores. “This campaign is designed to let customers know that Nordstrom and the merchandise we offer are everything fashion should be–inspiring, smart and, most importantly, fun.”
Nordstrom has one thing going for it that Sears and Penneys don’t: It is acting from a position of strength. Nordstrom is known throughout the industry for its customer service and its sales are chugging along nicely.
But a look at the complexities involved in Nordstrom’s makeover provide an insight into the gargantuan task Sears and Penneys are tackling.
Nordstrom spent months gathering customer input about its fashion offerings through focus groups and interviews. The feedback was clear: Nordstrom’s fashions were a little too classic, too safe. Customers wanted more fun and inspiring looks, and they wanted them in an organized, logical manner.
So Nordstrom reorganized its buying teams into two overarching taste segments: classic/mainstream and modern/forward. Examples of classic/mainstream brands include Liz Claiborne, Jones New York and Karen Kane. Modern/forward looks include Laundry, BCGB, Tahari and DKNY.
The retailer also freed up buyers from a lot of other functions, such as training and communication, that distracted them from their primary focus.
Then Nordstrom tackled the stores. Instead of overlapping merchandise assortments that looked much the same, Nordstrom has carved out “boutiques” to showcase the various taste levels.
The fixtures are different. The background music is different. Customers should be almost intuitively guided to the section of the store that reflects their fashion point of view and pocketbook, Nordstrom says.
Nordstrom has reason to believe it’s on the right track. Its renowned shoe division underwent a similar restructuring last fall that already has paid off in higher same-store sales.
Full speed ahead: It’s D-Day next week for Kohl’s Corp.
The Menomonee Falls, Wis.-based retailer is opening 18 new stores March 10 on Long Island and in New Jersey. Such a massive feat is only possible because Kohl’s has refurbished former Caldor stores rather than building its own from the ground up.
Kohl’s isn’t stopping there. In mid-April, it will bring its successful formula of selling brand-name apparel at discount prices to New York and Connecticut, opening 15 more stores.
That’s good news for Kohl’s already-happy shareholders. Its stores rack up sales gains at the fastest rate when they are between 2 and 4 years old, Chief Financial Officer Arlene Meier told Wall Street analysts recently.
With 55 to 60 new stores opening in 2000, that’s a lot of growth coming down the pike.
Maybe that’s why Kohl’s stock is trading at a price-earnings multiple of 55.4 and Sears shares are trading at 7.3.
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Contact Susan Chandler at SChandler@Tribune.com.
