Nordstrom Is Making Sound Investments in Operations and Merchandising but Lacks a Competitive Edge

Nordstrom has a loyal customer base built on differentiated fashion products, quality brands, and first-rate service. While we once thought that these strengths provided a competitive advantage based on a brand intangible asset, we no longer believe that they do. Realistically, Nordstrom’s recovery from the pandemic has been rocky, and the US apparel retail market has only become more competitive.