Running head: RETAIL ANALYSIS TERM PROJECT: DRY GOODS AND NORDSTROM

Retail Analysis Term Project

Ashlyn Zonca
Madonna University

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Dry Goods History of Operation

Situated in a 20 x 50 rented storefront in downtown Davenport, Iowa, the first Von
Maur store was founded back in 1872. Dry Goods was created to bring the tradition of oldfashioned customer service to a new generation of customers. Dry Goods has an ever-changing
selection of todays newest fashions. From clothing to jewelry to accessories, Dry Goods has
everything youll need to pull together your latest look (drygoodsusa.com).

The first Von Maur store in 1872

http://www.drygoodsusa.com

Dry Goods Classification

Dry Goods is a new chain retailer that is quickly expanding across the Midwest. The only
Dry Goods store in Michigan opened a little over two years ago in Twelve Oaks Mall in Novi.
Dry Goods stores are located in Iowa, Illinois, Indiana, Wisconsin, Michigan, and Minnesota.
The store in Indiana just recently opened the beginning of November and a new Dry Goods store
is in the works to be opened in Grand Rapids, Michigan. For only being around for a few years,
the chain is quickly expanding.

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Dry Goods Target Customer

The main target customer for Dry Goods is high school girls as well as young women in
college. However, women of all ages tend to shop at Dry Goods for their fashionable clothing
and accessories. Dry Goods finds that a lot of moms and daughters shop there together. The
moms go in with their daughters to buy their daughters clothing and end up finding something
for themselves as well. The women and teenagers that shop there are typically of middle class
and upper middle class. The clothing is a little pricey due to the fact that they are owned by Von
Maur and they do carry some upscale brands. Those that have money to spend typically shop
there. The target customer is also concerned with fashion and the way she dresses. She wants to
be up to date on the latest fashion trends.
Dry Goods Competition
The main competition for Dry Goods would be Francescas because they both have a
boutique feel to them. Sometimes a few of the same products are carried at both stores and are at
competitive prices. Another store that would be competition for Dry Goods would be the
Nordstrom B.P. Department because they carry many of the same items as Dry Goods and they
are at competitive prices as well. Nordstrom and Dry Goods both offer wonderful customer
service and that adds to the competition as well.
Dry Goods Analysis of Store Building
The physical set up of the outside of the store is what draws people into it. The entrance
of the store is glass double doors with an industrial look to the frame of the doors as well as to
the windows and the pillars. Once inside the store, customers immediately notice the tile floors
that have intricate detail on them. The inside of the store also has some brick wall accents as well

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as wood tables for display and wood hangers. There are wood shelves throughout the store that
have old antiques on them for decoration. The store is extremely organized and is always tidy
with everything in its place. The store is organized by color so items are easy to find. Accessories
and jewelry also have a designated spot in the store. At the back of the store, there is a large sale
room where everything is organized by size.
The fitting rooms make customers feel as though they are in someones home. There is a
bar table with a stool for men to stand or sit at while they wait for wives, daughters, or girlfriends
to try on their clothes. Once the customer enters the fitting room, there is a couch for other moms
or friends to sit at along with a large full length mirror. All the fitting room doors are wood with
a glass rectangle at the top for the workers to write the customers name on the door with a dry
erase marker so it makes it easy for the workers to check on each customer. It gives the fitting
room a more personalized feel and makes the customers feel like they are getting excellent
service. In each fitting room, there is a floor length mirror along with a stool. There is also a bar
to hang clothing that is to be tried on along with a hook on the back of the door to fit more
clothing. There is also an antique mirror hanging in the fitting room for decoration.
The register area is made up of a marble counter with wood accents on the bottom.
Behind the register, and old antique register is in front of a large mirror with the Dry Goods logo
on it. Drawers filled with tissue paper are located under the registers for the employees to wrap
the customers purchases. The store has a real boutique feel and is extremely organized and
welcoming. The location in Michigan is located at Twelve Oaks Mall in Novi on the first level of
the mall.

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Dry Goods Entrance at Twelve Oaks Mall

http://www.drygoodsusa.com

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Register Area at Dry Goods http://www.bing.com/images/search?q=Dry%20Goods%20Von
%20Maur&qs=n&form=QBIR&pq=dry%20goods%20von%20maur&sc=8-10&sp=1&sk=#view=detail&id=BD09BAE4B74AB0944D2ADFC6385E1C1B1AC5E511&selectedIndex=1

Dry Goods
http://www.bing.com/images/search?q=Dry%20Goods%20Von%20Maur&qs=n&form=QBIR&pq=dry%20goods
%20von%20maur&sc=8-10&sp=1&sk=#view=detail&id=BA1DD5BBDDE0F7550203CA810791B225BC522FD9&selectedIndex=10

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Dry Goods
http://www.bing.com/images/search?q=Dry%20Goods%20Von%20Maur&qs=n&form=QBIR&pq=dry%20goods
%20von%20maur&sc=8-10&sp=1&sk=#view=detail&id=90A201B19851015DAFDAC01581E1671901573B5A&selectedIndex=37

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Dry Goods behind the counter
http://www.bing.com/images/search?q=Dry%20Goods%20Von%20Maur&qs=n&form=QBIR&pq=dry%20goods
%20von%20maur&sc=8-10&sp=1&sk=#view=detail&id=C83E64C49497A038DFB8E771E2CFAFC5DC899489&selectedIndex=36

Dry Goods Fitting Room

http://www.bing.com/images/search?q=Dry%20Goods%20Von%20Maur&qs=n&form=QBIR&pq=dry%20goods
%20von%20maur&sc=8-10&sp=1&sk=#view=detail&id=BD09BAE4B74AB0944D2A3C0176BCFFE52F6DEDBD&selectedIndex=35

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Dry Goods Accessories
http://www.bing.com/images/search?q=Dry%20Goods%20Von%20Maur&qs=n&form=QBIR&pq=dry%20goods
%20von%20maur&sc=8-10&sp=1&sk=#view=detail&id=BA1DD5BBDDE0F755020303D8E02B7B3C9FE90CB0&selectedIndex=45

Dry Goods Promotional Techniques

Dry Goods does not offer many promotions or sales because they are owned by Von
Maur and Von Maur does not have any sales or promotions. The promotions that Dry Goods does
have are, buy two, get one for free on all of the jewelry and the bandeaus are two for $20. Dry
Goods also has a sale room at the back of the store where new merchandise gets added to and
marked down every week. Merchandise gets added to the sale room when it has been on the floor
for a long time and room needs to be made for new merchandise. The buyers for Dry Goods
decide when merchandise will get marked down and when it will get added to the sale room. Dry
Goods gets new merchandise in Monday through Friday.
Dry Goods does not do much advertising. People get drawn into the store based on the
store appearance. Once customers enter the store, they learn more about it and tell their friends
and that is how people find out about the store. Dry Goods also has a website where they sell
merchandise and where customers can learn more about the store. The website is
www.drygoodsusa.com. Dry Goods also offers and interest free and fee free charge card which
allows customers to shop without having to pay more than they actually spend on the clothing.
Dry Goods Method of Management
The organizational structure at Dry Goods is set up with sales associates at the bottom,
key holders above them, managers above the key holder, store manager above the managers, and

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the vice president of the company above the store managers. The sales associates are responsible
for selling as well as keeping the store clean and straightened as well as unpacking and putting
out new shipment. Sales associates report to the key holder, manager, and store manager. The key
holder is responsible for sales, keeping the store cleaned and straightened, opening and closing
the store, unpacking and putting out new shipment and managing the sales associates when a
manager is not around. The key holder reports to the managers as well as the store manager. The
managers are responsible for sales, making sure the store is cleaned and straightened, opening
and closing the store, managing the sales associates and key holder as well as visual
merchandising. The managers report to the store manager. The store manager is responsible for
all of the store functions including opening and closing the store, visual merchandising, making
sure the store is cleaned and straightened, and managing the employees. The store manager
reports to the vice president of the company who has the final say and makes all of the major
decisions.
The hiring criteria for Dry Goods sales associates is the applicants must be of at least 16
years of age and have some retail experience. They must be friendly and be helpful to customers
since Dry Goods is about offering old-fashioned customer service. Hiring criteria also includes
selling merchandise to customers at or above sales goals, learning about products in the store in
order to provide better customer service as well as unpacking, displaying, and maintaining the
condition of store merchandise. Key holders, managers, and store managers must have
management experience as well as retail experience. Dry Goods likes to promote from within so
it is easy for employees to move up in the company. As for training programs, the store manager
as well as the mangers and key holders are responsible for training new employees. Sales
associates also help with the training in showing new employees exactly what is to be done on

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the sales floor. Sales associates act as role models for new employees. Everyone works together
to train new employees.
Dry Goods Selling Methods
The selling methods used at Dry Goods are a sales staff that is commission based with a
base pay as well as the internet. Dry Goods has a website where customers are able to purchase
items from the internet and have them shipped to their homes. The sales staff at Dry Goods offers
excellent customer service and most of the time customers do not even know they get paid by
commission. The sales associates are not pushy and are there to assist the customers when they
need it.
Dry Goods Critique of Merchandise/ Service Mix
Dry Goods carries a variety of different brands ranging from Jack to Jessica Simpson.
Dry Goods carries jeans, tops, dresses, jewelry, purses, sunglasses, scarves, coats and jackets,
socks, shoes, bralettes, as well as a variety of gift items. The jeans range in price from $49 up to
$80. The tops and sweaters range in price from $19 up to $90. The gifts are the lowest priced
items. The price range of the entire store varies from $4 to $150.
Dry Goods Customer Services Offered
Dry Goods strives to be the best in customer service. For example they assist in helping
customers to find clothes as well as items they may be looking for. As soon as the customer
walks into the store they are greeted and asked what they are looking for. Customers are always
the number one priority at Dry Goods. Sales associates also help customers in the fitting room
when customers need an opinion on the fit of an item or an opinion on how the clothing looks on

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the customer. Sometime sales associates act like stylists when trying to put the perfect outfit
together for customers. At checkout, sales associates also wrap the items purchased in tissue
paper and walk the bag around the counter to hand it to the customer. If a customer asks, the
sales associate can also put the wrapped merchandise into a gift box. Dry Goods puts the
customer first and makes sure the customer is happy. The golden rule Dry Goods employees
follow is the customer is always right.
Nordstrom History of Operation
An unerring eye for whats next in fashion. A relentless drive to exceed expectations.
For more than 100 years, Nordstrom has worked to deliver the best possible shopping
experience, helping customers possess stylenot just buy fashion. Nordstrom, Inc. is a leading
fashion specialty retailer offering compelling clothing, shoes and accessories for men, women
and children. Since 1901, weve been committed to providing our customers with the best
possible serviceand to improving it every day. This commitment has taken us from a small
Seattle shoe shop to the leading fashion specialty retailer we are today. Were proud to serve
customers in 38 states with 118 full-line stores in the United States and one in Canada, 167
Nordstrom Rack locations, two Jeffrey boutiques and one clearance store. We also serve
customers online in 96 countries through Nordstrom.com. We recently began serving customers
through Trunk Club, a personalized styling service. We believe fashion is a business of optimism,
and in that spirit we continue to grow and evolve. Free shipping and free returns, mobile
shopping and exciting new retail partnerships offer us continued opportunities to serve more
customers in more ways with a fresh, relevant shopping experience and inspiring style. Fashion
changes. Shopping changes. Our commitment to happy customers doesnt (Nordstrom.com).

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http://www.bing.com/images/search?q=nordstrom%20interior&qs=n&form=QBIRMH&pq=nordstrom
%20interior&sc=8-12&sp=1&sk=#view=detail&id=6EA720137FFB954481860C718B94B5365EA32B00&selectedIndex=463

Nordstrom Classification
Nordstrom is a chain retailer with stores all over the country. Nordstrom also has a
website which is www.nordstrom.com where customers are able to order merchandise online
from all over the world. Nordstrom offers free shipping and free returns when items are
purchased online. They also offer select items only on their website. Each store is set up the same
way and each store offers the same level of customer service. Nordstrom stores are typically
found in malls across America.
Nordstrom Target Customer

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The Nordstrom B.P. Departments target customer is teenage girls as well as women in
their twenties. It is not unusual however, to find both moms and daughters shopping in that
department. The typical woman that shops in that department is a middle class woman who is
willing to spend a little bit of money on her clothing. The target customer is also one that is
concerned with fashion and the way she looks. She wants to be up to date on the latest fashion
trends.
Nordstrom Competition
Competition for the B.P. Department at Nordstrom would be Dry Goods as well as
Macys. Macys would be competition because both stores have a juniors department and they
are competing department stores. Certain items that are sold at both stores are comparable by
price. The biggest competition however, is Dry Goods because both stores sell many of the same
items at competing prices. Dry Goods and Nordstrom also both offer excellent levels of customer
service whereas Macys cannot compete with Nordstrom in that category. Sales associates at both
Dry Goods and Nordstrom are very knowledgeable of the merchandise and are more than willing
to help customers.
Analysis of Nordstrom Store Building
The physical set up of the Nordstrom B.P. Department is set up like a typical department
store. They have racks set up throughout the department and it is organized by style of clothing.
There is a section for casual clothing and one for dressier clothing. The newest merchandise is
around the edges of the department so they are the first thing customers notice when they enter
the department. There are also racks set up that are specifically clearance racks and they are

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organized by size. Each clothing rack in the department has markings on it for sizes so customers
can easily find their size. In the middle of the department is where the register is located.

http://www.bing.com/images/search?q=nordstrom%20bp%20interior&qs=n&form=QBIRMH&pq=nordstrom
%20bp%20interior&sc=2-16&sp=1&sk=#view=detail&id=84E40328C43090BA2D19C21525879AEB96DD5B09&selectedIndex=0

http://www.bing.com/images/search?q=nordstrom%20bp%20interior&qs=n&form=QBIRMH&pq=nordstrom
%20bp%20interior&sc=2-16&sp=1&sk=#view=detail&id=3131BC239DF421D4588F83469EEC47381C3A2023&selectedIndex=22

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On the far wall of the department, there is a giant screen where music videos are played
for entertainment. A fitting room is also located at the back of the department. In the fitting room,
there is a large velvet couch where moms and friends can sit and wait for their daughters or
friends to try on clothing. There is also a long row of fitting rooms so there is often times not a
wait to try clothes on. On each fitting room door, there is a small dry erase board so that
employees can write the customers name on the door so it is easy to check on customers.
Customers also get a more personalized shopping experience this way.
The exterior store appearance from the mall entrance, has two display windows. Each
display window is the same for every Nordstrom store. The displays are often a certain scene that
shows off a few items of clothing. There is also a giant sign with the name Nordstrom on it. The
main entrance to the store resembles that of the mall entrance. Nordstrom stores are found in
shopping malls.

Nordstrom mall ehttp://www.bing.com/images/search?q=nordstrom%20B.P.

%20department&qs=n&form=QBIR&pq=nordstrom%20b.p.%20department&sc=1-25&sp=1&sk=#view=detail&id=44F8317B552FFB7F86B3995ADBD08A8810516CD4&selectedIndex=174ntrance

Nordstrom Promotional Techniques

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Nordstrom advertises through catalogues that are sent to their customers homes. They
also have advertisements in some magazines such as Teen Vogue. Nordstrom also offers a charge
card and a debit card. There are two types of Nordstrom charge cards. The first one is strictly a
Nordstrom store card and the other is a Nordstrom Visa card where the customer can use the
charge at Nordstrom as well as at other retailers. The Nordstrom charge is on a point system. The
customer gets one point for every dollar that they spend at Nordstrom. When a customer has
reached 2,000 points, they get at $20 Nordstrom Note where they get $20 off anything in the
store or online. Nordstrom also has a half yearly sale as well as a 40% off sale four times a year.
They also have double and triple points days for Nordstrom card members so they can get
Nordstrom Notes even faster.
Nordstrom Method of Management
The organizational structure of Nordstrom is sales associates at the bottom, above them
are department managers, above them are store managers, then buyers and merchandise
managers, and at the top are the board of directors. The sales associates are responsible for
customer service as well as making sales. They report to the department manager who deals with
customer complaints as well as running the department. The buyers and merchandise managers
are responsible for the clothing that ends up in the store and the way they are displayed and the
way the store is organized. The board of directors makes the final decisions involving the
company.
Hiring criteria include having a high school diploma, or equivalent (preferred), proven
ability to set and achieve sales goals, competitive drive and entrepreneurial confidence to
succeed in a commission-based environment, demonstrated ability to develop relationships with

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customers and coworkers, knowledgeable and enthusiastic about fashion, ability to positively
and proactively handle customer concerns and prioritize multiple tasks in a fast-paced
environment, ability to quickly learn new procedures and processes, strong organizational and
follow-through skills, excellent communication and interpersonal skills, high level of ownership,
accountability and initiative.
Nordstrom provides a significant amount of training for salespeople through the
continuous coaching and mentoring provided to new hires, and through the ongoing support
provided to staff by managers and senior sales people. Managers are taught to be servant leaders,
an approach that has taken hold in many great organizations. This is best exemplified by the
notion that a great leader is first a great servant to those who depend on her or him. At Nordstrom
this is best seen in the each one teach one approach to insuring that employees are continuously
supported in their professional growth and development. While there are formal, structured
programs that support professional development such as Nordstrom Future Leaders and the New
Manager Development Program, it all rests on the expectation that mentoring and coaching is
part of everyones job.
Nordstrom Selling Methods
Nordstrom has a sales staff as well as a website where customers are able to order
merchandise online. Nordstrom is also commission based selling. The sales associates offer great
customer service and are always friendly. Sometimes however, they are difficult to find when
help is needed. Even though the sales associates are paid by commission, customers often times
do not know that because they are not pushy when trying to sell merchandise. They let the
customer decide for themselves what it is they want to purchase.

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Nordstrom Critique of Merchandise Mix

Nordstroms B.P. Department offers a variety of brands ranging from their own private
brand to brands such as Lush for example. They sell dresses, skirts, tops, sweaters, scarves, gifts,
and sunglasses. Prices can range from $5 up to $200. Nordstrom also offers great customer
service. They help customers find what they are looking for as well as showing customers new
merchandise. Customers are greeted as soon as they walk into the department.
Nordstrom Customer Services Offered
Nordstrom sales associates greet customers as soon as they walk into the department.
Sales associates help customers find what items they are looking for as well as showing them
new merchandise. Sales associates are very knowledgeable of the different brands and
merchandise that is offered. They also help customers put outfits together and help with the fit of
different items. They make sure the customer is always happy and that they are getting exactly
what it is they are looking for. Sales associates can also order items online for customers if the
item is not offered in the store. Customers still get free shipping and free returns when items are
ordered from the store.
Comparing Dry Goods and Nordstrom
Both Dry Goods and Nordstrom put the customer first. They both offer excellent
customer service and make sure the customer is always happy. Dry Goods golden rule is that the
customer is always right. At both Dry Goods and Nordstrom, the sky is the limit for the
customer. The customer can always get what they want. Both retailers offer the same
merchandise and offer a wide variety of merchandise. Dry Goods feels more like a boutique
whereas Nordstrom B.P. Department feels like a department store.

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Both retailers are chains and every store is set up the same way and has the same
customer service standards. Nordstrom B.P. and Dry Goods both have the same target customer
and they are competition for each other. Both retailers are organized very well so merchandise is
easy for the customer to find. Nordstrom does however, offer more promotions for customers and
advertise more than Dry Goods does. Nordstrom has a greater customer base than Dry Goods
does because of their advertising and promotional techniques. Both retailers are also commission
based selling, but the customer would not know that because sales associates at both stores are
not pushy. The price range at both retailers is about the same and the prices are comparable.
At Dry Goods, customers get a more personal and intimate shopping experience because
it is more like a boutique and it is not so crowded and overwhelming in the store. Nordstrom B.P.
Department can be more chaotic and more difficult to get help from sales associates because they
can sometimes be hard to find. They can be in a different department and Nordstrom is large and
overwhelming at times with how many departments there are and how much merchandise there
is. In customer service, Dry Goods is more effective in that way.
In variety of merchandise, Dry Goods and Nordstrom are both equal because they both
offer the same merchandise. Dry Goods however, does offer more types of merchandise than
Nordstrom does. Dry Goods also offers better customer service in that they wrap the
merchandise and bring the bag around the counter to the customer and Nordstrom does not. Dry
Goods is also more organized than Nordstrom because their store is organized by color and
everything is sized. Items are easy to find whereas at Nordstrom, the department is only
organized by whether or not the clothing is dressy and new. The correct sizes are not always
placed with the correct size label. Overall Dry Goods is the better retailer because they are more
organized, they offer better customer service, and their store is more appealing.

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References
Dry Goods." Personal interview. 18 Nov. 2014.
Nordstrom Careers - Search Opportunities." Nordstrom Careers - Search Opportunities. N.p.,
n.d. Web. 08 Dec. 2014. <https://nordstrom.taleo.net/careersection/flsjob/jobdetail.ftl>.

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"Nordstrom: Free Shipping. Free Returns. All the Time." Nordstrom. N.p., n.d. Web. 08 Dec.
2014. <http://shop.nordstrom.com/c/company-history?origin=leftnav>.
"Nordstrom: Free Shipping. Free Returns. All the Time." Nordstrom. N.p., n.d. Web. 08 Dec.
2014. <http://shop.nordstrom.com/c/company-history?origin=leftnav>.
"Nordstrom." Personal interview. 20 Nov. 2014.
"Our Story." Our Story. N.p., n.d. Web. 08 Dec. 2014.
<http://www.drygoodsusa.com/Default.aspx?PNM=au>.