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Nordstrom SWOT & PESTLE Analysis

ID : 52155353| Nov 2019| 15 pages


Business Sector :Retail (Fashion and Lifestyle)

Operating Geography :North America, USA, Canada

About Nordstrom :

Nordstrom Inc. operational since 1901, is a leading fashion specialty retailer company which operates through 3 segments i.e. Retail, Credit, and Corporate/Others. This stellar fashion retailer offer compelling clothing, shoes and accessories for men, women and children. It also offers wedding and home decoration products. The company had initially started out as a shoe store in Seattle and was founded by John W. Nordstrom and Carl F. Wallin. It has 379 stores spread out across the US, Puerto Rico and Canada. The company is headquartered in Seattle, Washington - United States and has over 72,500 employees as of 2018.
The company is committed to providing their customers with the best possible service and they aspire “to be the best fashion retailer in a digitally connected world.”

Nordstrom Revenue :

US $15,137 million - FY ending February 3, 2018 (y-o-y growth 4.4%)
US $14,498 million - FY ending January 28, 2017

Competitive Analysis of Nordstrom

The SWOT analysis for Nordstrom is presented below:
1. Customer service
2. Multiple stores- broad range of merchandise
3. Many years of experience
4. Innovations
5. CSR
1. Expensive- price sensitive customers
2. Store locations
1. Expansion of international operations
2. Demographic changes
3. Decrease in the unemployment rate
1. Intense competition
2. Risks due to economic and external market factors
3. Foreign currency exchange risk.
4. Risks due to legal and regulatory factors
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Detailed SWOT Analysis of Nordstrom



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1. Intense Competition: Retail business is highly competitive. There is a wide range of local, regional, and national wholesalers and retailers both in the United States and in foreign countries which compete for employees, members, sites, products and services. So this may pose threat to Nordstrom Inc. This rivalry is bound to increase as the industry enters into the mode of consolidation and alliances. The offline retailing is dominated by Walmart while the online channel is mostly ruled by Amazon. As the customers’ preferences are changing a greater effort must be put in engaging them at online platforms.

2. Risks due to economic and external market factors: High energy and gasoline costs, inflation, levels of unemployment, consumer debt levels, healthcare costs, foreign currency exchange rates, reduced consumer confidence, unsettled financial markets, weaknesses in housing and real estate markets, changes related to government fiscal and tax policies, sovereign debt crisis, and other economic factors could adversely affect demand for products and services. In particular, the value of the assets could decrease and their operating costs could increase, due to changes in demographic trends, real estate market, site competition, and overall economic trends.

3. Foreign currency exchange risk: Operations in countries other than the U.S. such as Canada are conducted primarily in local currencies of those countries. So Future fluctuations in currency exchange rates over time that are unfavorable Nordstrom Inc. may adversely affect the financial performance of Canadian and Other International operating segments and have a corresponding adverse period-over-period effect on their results of operations.

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Check Out Analysis of Other Relevant Companies

References used in Nordstrom Analysis Report

1. Nordstrom company website -

2. Nordstrom annual report 2018 -

3. Nordstrom annual report 2018 -

4. Nordstrom Reports Fourth Quarter and Fiscal 2018 Earnings -

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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Nordstrom SWOT & PESTLE Analysis - SWOT & PESTLE.COM

SWOT & (2020). Nordstrom SWOT & PESTLE Analysis - SWOT & [online] Available at: [Accessed 03 Apr, 2020].

In-text: (SWOT &, 2020)

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Nordstrom SWOT and PESTLE analysis has been conducted and reviewed by senior analysts from Barakaat Consulting.

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Nordstrom SWOT & PESTLE Analysis
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