123 years later and we’re still operating with a startup mindset

In 1901

John Nordstrom and Carl Wallin opened the original Wallin and Nordstrom Shoe Store. Twenty-two years later, a second Nordstrom Shoe Store opened. Today, according to Nordstrom Company Facts, there are 360 ​​stores in the U.S., including 93 Nordstrom stores, 258 Nordstrom Rack stores, two outlet stores, six Nordstrom local service centers, and online e-commerce sites for Nordstrom and Nordstrom Rack.

A lot has happened over the past 123 years, and many retailers have come and gone. There have been stock market crashes, wars, economic hardships, pandemics, and more. But Nordstrom has weathered these storms and continues to have a reputation for incredible customer service and convenience.

Robert Spector is an author and Nordstrom expert, having written five books about Nordstrom, the most recent of which is A Startup with Over a Century of Tradition: Nordstrom’s Way to Embrace Change, Challenge, and Customer Service CultureI had the opportunity to interview him about the book and how Nordstrom remains a brand that has endured for over a century.

Spector’s first response was brief, and as the book’s title suggests, the management team has a startup mentality. Its management makes decisions quickly and keeps up with changes in the economy and customer expectations. Here are some of the key takeaways from our interview:

· Nordstrom Manual: It’s a legendary story. Nordstrom has one rule: Use common sense. The company hires good people, trusts their ability to manage customer interactions, and empowers them to make good, customer-centric decisions.

· Training: The training includes sharing examples of how other employees solved problems and took care of their customers. Legendary customer service stories (like the story of the employee who refunded a used set of tires) illustrate how Nordstrom treats its customers, which in turn inspires and motivates employees. These stories emphasize the importance of finding ways to exceed customer expectations.

· Supporting social causes: Customers prefer brands that support the same social causes they do. Nordstrom understands that in addition to giving back to the community, embracing social responsibility also includes respecting different values ​​and perspectives and adapting to different cultures for both employees and customers.

· Technology: You can’t continue doing business the way you always have. Nordstrom has shown that it can adapt to new ways of retailing. Spector writes that Nordstrom has embraced technology. Its philosophy is to try. If it works, great. If it doesn’t, move on. At the same time, the company recognizes that its reputation is tied to its legendary customer service. It has found ways to embrace e-commerce and adapt to the ever-changing needs of customers and the way they shop. Spector says, “Balancing technology with personal connections and understanding the importance of human interaction is key to creating a differentiated and exceptional customer experience.”

· Accept transformation: Retail continues to evolve, and Nordstrom’s new iterations prove that the only constant you can count on is change. But one thing that hasn’t changed is Nordstrom’s theme of customer focus, despite the changes it has made, including the opening of Nordstrom Rack, outlet stores, and e-commerce.

The overarching theme of all the ideas Spector shares about Nordstrom is that from the very beginning, the company has recognized the power of the relationships it has with its customers. Delivering a level of service that is sometimes unexpected has resulted in a reputation that has maintained its relevance for more than a century. Spector sums it up by saying, “Ultimately, it’s about how decisions positively impact the customer, not just the company.”