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Nordstrom Business Plan
Transcript of Nordstrom Business Plan
Critical Assumptions/Risk Assessment
Opened in 1901 in downtown Seattle as a shoe store by John W. Nordstrom and Carl Wallin.
From the start, John's approach to business was to provide
Nordstrom is proud to serve customers in 44 countries and 31 states with 117 full-line stores, 124 Nordstrom Rack locations, two Jeffrey boutiques, one clearance store and Nordstrom.com.
We have found that it is in countries such as Poland that there is a
in a strong market presence, especially in the luxury goods market.
Since the mid 2000’s, the economy of Poland has been
which in turn shows a directly correlated relationship with the GDP per capita of the Polish people; they're becoming
every year at a very high rate.
They have one of the fastest growing economies in Central Europe with an annual growth rate of
Consumer spending is projected to
Poles on average spend
of their income on luxury goods.
Unofficial population of
within a 62 mile radius.
The average age in the city is
of the population being under 45 years of age.
We are suggesting opening a Nordstrom store within Poland’s Market Square
Given the growing demand in luxury goods due to the
in middle class population, we have decided that a Nordstrom would prove profitable
the want for luxury goods
The want for “luxury goods” as well as our mission to bring
service to a European market place.
Luxury goods are any goods marked with a brand considered to be a luxury brand on a particular market, or goods which acquire a luxury status owing to their particular characteristics (uniqueness, high price, etc).
Of all 200 major global luxury brands,
are represented in Poland.
Although they have a presence, they
may not offer
the opportunity to purchase merchandise in store, which is what we will bring to the city.
An actual store that customers can shop in and not just have knowledge of the “representation” of the brands.
Solution Detail Cont'd
Opening the store, we will access a loan of $20 million and enter to market with the licensing method to
the risk of enterying a foreign market.
The loan will cover what we expect to be our expenses, costs, etc...(see spreadsheet)
Within our Nordstrom, we will offer a
environment within shopping such as including a
coffee located inside
shipping/return policy, a practice in business that is not common in Poland.
Offering brands that usually wouldn’t appear in Nordstrom’s, such as
Tiffany & Co. Jewelry
Allowing for the counters within each department to
the new brands to get a general idea of whether or not certain brands will sell.
Keeping this in rotation with different brands will
attract “brand loyal”
customers to want to shop with us.
Our initial idea was to have “top notch” brands within our company.
After realizing that we needed a starting point, we decided to adjust the merchandise we carry, to achieve our goal of
brand loyalty with brands that aren’t as luxurious but still within Nordstrom quality.
that would fit into Poland’s standards as well as Nordstrom’s atmosphere would allow for us to
into the opening of our business.
Offering lower end brands that still fit into Nordstrom?
Smaller/ individual carriers?
Allowing for items that aren’t available in store to be ordered via internet
What is Nordstrom?
Construction will begin
Advertisment for Nordstrom will appear in Krakow.
Exclusive fashion show held at Nordstrom.
Grand Opening to the public.
20 thousand units of merchandise sold.
Begin plans to introduce higher luxury brands.
Six additional luxury brands introduced.
29 thousands units of merchandise sold.
Reach 50% of sales net income.
Expand Men's department
Introduce expanded Kids' department and specialty shops.
Reach sales of 83 million.
Research other markets for possibilty of opening additional locations.
Critical Assumptions/Risk Assesment
The people of Poland may be
by our introduction of the brand along with American values.
European consumers are also view merchandise manufactured in china as being low in quality;
selection of merchandise will be required.
Many foreign investment restrictions have been lifted or reduced which has
opportunities and profitable ventures.
Showcase what the
fashions are and make it
is the store that carries them.
Ads in Krakow, its
and a few in the
that would have
access to Krakow’s Market Square, specifically Prague, Czech Republic and L’viv, Ukraine.
Print ads in
such as Harper’s Bazaar Poland, Cosmopolitan Poland, ELLE Poland and Moda Styl.
Promotions during the
week of our grand opening.
Securing a partnership with
service that is
and it satisfies the needs and wants of new luxury goods.
With careful planning and selection of right local partners, Nordstroms can
enter the luxury goods market.
First mover advantage could help Nordstrom
into other emerging markets.
Poland is the
country in the European Union to
avoid a recession
through the 2008-09 economic downturn.
Loan Amount: $20 million dollars
Interest Rate: 3.5%
Amount to be paid back: $ 22.1 million dollars.
for Your Time!