The Nordstrom Way: The K-Selected Model of Doing Business

Everyone has his or her own story to share, but I like this one: it took place at the Anchorage store soon after Nordstrom’s 1975 purchase from the Northern Commercial Company. A customer, unaware that the store had changed hands, returned a set of tires. Nordstrom accepted the tires. Nordstrom doesn’t sell tires.
John Nordstrom emigrated to the United States in 1887, hoping to found a department store. He co-founded the shoe store Wallin & Nordstrom in 1901 in Seattle. Over the years, Nordstrom swelled from one downtown Seattle shoe store into a nationwide fashion department store renowned for its customer service, generous size ranges and wide selection of fine apparel and accessories—oh, and shoes. “Known for its wide aisles…tasteful fixturing, seating for shoppers and live piano players, Nordstrom epitomizes
specialty retail department store shopping,” says Wikipedia.The Nordstrom model of customer service is based on building a long-term relationship with returning customers; rather than the one-shot sale. It is very similar to the reciprocal altruism I talk about in a previous post that explores "the Prisoner's Dilemma". An incredible example of this practice is the story Spector tells of a customer who loved a certain model of slacks that was on sale at Nordstrom. The salesperson was unable to find her size there or at any other Nordstrom in town. Aware that the same slacks were available at a competitor, the associate secured some petty cash from her department manager, nipped over to the competing store, bought the pair (at full price) then sold it to the customer at the Nordstrom sale price. Obviously, Nordstrom didn’t make money on that particular sale, but this was considered an investment in promoting the loyalty of the customer. No doubt, she would think of Nordstrom for her next purchase.
Labels: customer service, ecology and economics, k-selected, K-strategists, new economic models, Nordstrom, r-selected
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