Question

Hey Max, It sounds like Nordstrom Rack is a premium retailer, given the way you talk about it. I have personally never been, but the way you talk of the clientele and how the customer service is always at your beck and call give a very high-end feel. Do you feel they promote newer items and brands or do they keep the older more reliable ones in prominent positions?

Answer 1

They have maintained a mix of both the strategies in which they are promoting the newer brands in a very extensive and smooth manner keeping in mind that they do not overshadow the existing products who are actually reaping them good profits and a better reputation in the market. Having said that there is no doubt in the fact the in the prominent position they keep their existing product because they gamble with their new product with a safety base of sales that occur from the existing product. The newer items are promoted extensively and a particular budget is allocated but still, they keep the cushion of existing products as well because the customer is more inclined towards his comfort zone ie. the existing product.