Mba640 The First Nordstrom Store Assessment Answers

Nordstrom has made the decision to take its stores globally. With that being said, we will be opening our first store in Abu Dhabi, United Arab Emirates with an expected date of Spring 2019. We have acquired a license agreement with Al Tayer Group, LLC of Dhabi retailers.

Until recently we have maintained as a domestic retailer while our competitors have expanded globally. The store will open in Al Maryah Central which is a very prominent shopping district on Al Maryah Island. The current location space over 3 million square feet with development opportunities for retail, restaurants, health clubs, hotels, etc. I believe it is the perfect space to add a Nordstrom retail store and it to be very successful.

The Nordstrom store will be roughly 220, 000 square feet. With our previous expansion to Canada and its success the next step to Dhabi is projected to prove as successful. The Nordstrom brand has become a household name and has gained worldwide recognition thanks to our online stores. With our international online sales continuing to increase, the importance of capitalizing on this and opening a brick and mortar store internationally is now. I believe this project is a sensible and strategic plan that will cultivate shareholder and customer excitement (Wahba, Phil 2017).

Answer:

As a leading departmental store, Nordstrom has made a decision to expand and take its operations globally. The United Arab Emirates (UAE) has proved to be a very receptive market and we will be opening the first Nordstrom store in Abu Dhabi. We have acquired a sales license agreement to be partners with Al Tayer Group, LLC of Dhabi retailers(Bailey, Sharon 2016). The need for expansion is that we want to increase the revenue but also because in the retail industry, competition is very high. Our competitors are largely expanding to new territories while we have maintained as a domestic retailor.

The store will open in Al Maryah Central in the summer of 2019. Al Maryah Central is a prominent shopping district located in Al Mariyah Island.  Al Maryah location has over 3 million square feet with opportunities for setting up hotels, restaurants, health clubs and retails shops. I believe it is a strategic place to add Nordstrom retail store in anticipated increase in sales and profits.

The floor space will be roughly 220,000 square feet. Like our expansion to Canada, Nordstrom Abu Dhabi is projected to be very successful. We will leverage on the Nordstrom brand which has become a household name and gained a good reputation thanks to our online retail stores (Adams, Allan, FAN, Kockar & Xu, 2017).  A brick and mortar store is important in capitalizing on the continued increase in our online sales. I believe that the project is strategic, sensible and will cultivate to the excitement of our customers and shareholders.

References

Adams, S., Allan, G., FAN, F., Kockar, I., & Xu, H. (2017). NINES project: 6A Commercial Arrangements and Economics Report.

Forbes.com International Marketing

Marketrealist.com (Bailey, Sharon 2016).