Nordstrom does it again...

Nordstrom is legendary for great service…. this is the retailer who will take back almost everything and standardized "the walk around" to hand off purchases at the cash wrap. It's no surprise then that Nordstrom's new website, launched last Saturday, is brimming with thoughtful details that put the customer first. Users can now search through products with ever more detailed screening options in every category. Following the mantra that "content is king" the site is building out a section rich with articles and video that feature archetypal customers and their favorite products.

What may be most important change on the site is one you can't see… the inventory policy. While it may sound boring, it's a minor revolution in the retail world that Nordstrom has been linking their stores' inventory with the website. Most web-storefronts treat inventory as wholly separate from stores… hence, a shortage on the website might lead a customer to shop a competitor even though the desired product is on the shelf at one of the stores. It's incredibly hard to implement, but by coordinating inventory between site and store, stores reduce overages, inventory holding costs and markdowns – all the while delighting customers.

As the New York Times reported this morning, the results for Nordstrom's bottom line have been powerful…. Inventory turns are at five-year highs and the company continues to deliver strong profits in a challenging retail environment.

Retailers inspire customers to spend more and return less

Summer is in high gear and innovative retailers are exploring ways to make customers feel better about spending, maintain loyalty to their brands and reduce merchandise returns. Here's a rundown of some newer initiatives…

• Several retailers are experimenting with stricter return policies. J Crew's summer sale is now the "Final Sale"… all sales are final. Prior to the recession, upscale retailers almost always accepted exchanges and returns – even on clearance merchandise. However, as inventories are more closely monitored by Wall Street, the final sale is becoming a more common move.
• Store loyalty programs are offering more attractive benefits to bring in new customers. Just as Back to School is rolling out, Target is offering Redcard holders a 5% discount on everyday purchases – this is on top of the 10% one-day signup discount. Expect to see several more store charge cards offer similar programs during Holiday.
  
• Sam's Club, Walmart's warehouse store for small business, is running a novel experiment to stimulate spending. The store is offering club members affordable loans in conjunction with the Small Business Association to stimulate enterprise growth. While the company will be lucky to break even on the loans themselves, it is betting that when club members' businesses grow, so will Sam's Club.