Sydney Wagner
Mrs. Straub
AP Economics
3 November 2015
Nordstrom at Mayfair
The long wait is over: Nordstrom has opened in Wisconsin. From now on Wisconsinites will no longer have to taken lengthy drives into the busy roads of the Chicago area to find quality clothing (Gores). The new store, known for its expensive merchandise, has found a home in Mayfair before it has even developed in New York City. The demographics of the area have the perfect conditions to make Nordstrom successful while increasing the amount of clothing stores for the consumer. Instead of choosing between the usual, Boston Store and Macy’s, consumers have options to spend their time and money in another store that offers similar products. As a result of the location, Nordstrom has entered an oligopoly market structure because there are only three major department stores in the area.
The store will bring benefits to Mayfair, such as the increase of jobs and consumer demand because the close distance allows for the opportunity cost to decrease when compared to the long drive it would take to go to Chicago for the same products. On the other hand, competing stores may find that their total profit begins to decrease because of the excitement of the new store. To avoid a decrease in revenue, other department stores will have to find better ways to market and reach their customers. As for Nordstroms, the press has marketed for them. With their brand recognition, there was no problem finding consumers that would pay the extra price for the great quality they hold.
The Milwaukee Metro area is increasing their retail projects, starting with this Nordstrom (Gores). The growing population allows for more consumers with different needs and wants. This shows that the area is ready for more stores, even if they offer products at a higher price. In order for Nordstrom to thrive in Wisconsin, it will need to separate itself from the department stores that have been in the area for years, and show that it can keep up with new competition as it developed in surrounding areas. Although the firms have to worry about competition and finding loyal customers, Wisconsinites can enjoy the variety and options they now possess with the increase in retail stores.
Works Cited
Daykin, Tom. “Blue Mound, Mayfair Retail Areas Receiving a Burst in Investment.” Journal Sentinel. Journal Sentinel, 7 Dec 2013. Web. 2 Nov 2015.
Gores, Paul. “Nordstrom at Mayfair Mall Finds Its Niche.” Journal Sentinel. Journal Sentinel, 17 Oct 2015. Web. 2 Nov 2015.
This topic really grabbed my attention since I love Nordstrom! And now that it's open at Mayfair which is way closer than Chicago, it really is beneficial for all the people to drive to Mayfair and save gas than to drive to Chicago to go shopping. Nordstrom opened at just the right time, since black friday is only a couple weeks away, they will definitely have a higher consumer demand rushing into the stores trying to find the best deals. And not only will their store have a higher consumer demand, but Michael Kors also opened too in that area, so they're helping them with their consumers and other stores around them for more buyers.
ReplyDeleteI heard that Nordstrom was coming to Mayfair a couple months ago and was excited to have another place to shop so close to home. I had no idea that the nearest Nordstrom was all the way in Chicago! I have never actually been to Nordstrom but now that it is so close I will for sure check it out. I believe that other consumers will also want to shop at Nordstrom now, so the popularity of the store will increase initially and hopefully establish a large customer base right away. I wonder if they will build another Nordstrom in another populated area in Wisconsin such as Madison or Green Bay if the location at Mayfair does well. Great article!
ReplyDeleteThis is definitely an interesting discussion topic. While shopping at Mayfair mall the other week my mom made a comment about the types of stores at Mayfair changing. Now, instead of the regular retail stores, many popular, high-end makeup shops and other stores have found a spot in the mall. I believe the expensive jewelry, makeup and shoe stores are a partial effort to differentiate Mayfair mall from the smaller Brookfield square. That being said, it will be interesting to see how a department store as large as Nordstrom will do in Wisconsin. Initially, there should be an increase in revenue as a result of the excitement of a new store opening, but Wauwatosa, Wisconsin is nowhere near as large as Chicago. The area is more conservative and I wouldn't be surprised if revenue begins to decline as people continue to shop at Macy's, Kohl's, Boston Store, etc.
ReplyDeleteIt's so convenient that there is now a Nordstrom so close to us, especially for the people who always drove to Chicago to get to one! One of the many reasons that I've only been to Nordstrom once or twice is because there was never one close to us, and I never wanted to drive all the way to Chicago to go shopping. It's also very interesting how Mayfair is adding these new stores so that they can differentiate themselves from malls like Brookfield Square. I am fairly sure that the Nordstrom at Mayfair will be very successful, and it's opening has been highly anticipated by many. Now that it's open for business, demand is definitely going to shoot up; it will be interesting to see what the other major department stores at Mayfair are going to do to ensure that their demand does not decrease.
ReplyDeleteIt's so convenient that there is now a Nordstrom so close to us, especially for the people who always drove to Chicago to get to one! One of the many reasons that I've only been to Nordstrom once or twice is because there was never one close to us, and I never wanted to drive all the way to Chicago to go shopping. It's also very interesting how Mayfair is adding these new stores so that they can differentiate themselves from malls like Brookfield Square. I am fairly sure that the Nordstrom at Mayfair will be very successful, and it's opening has been highly anticipated by many. Now that it's open for business, demand is definitely going to shoot up; it will be interesting to see what the other major department stores at Mayfair are going to do to ensure that their demand does not decrease.
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ReplyDeleteGrowin up in Chicago , I know how big of a deal Nordstroms is. The timing of the arrival could not have been better due to Back friday being right around the corner. The arrival of this store not only gives people more choices when it comes to purchasing clothing, but by bringing such a big name to mayfair , it will increase the number of shoppers at the store and at Mayfair mall in total. Nordstroms not only is catering to well of consumers, but have also opened a Nordstroms rack, which is similar to their clearance section. Nordstrom did a great job understanding their demographic and catering to all needs, but offering goods in for multiple price ranges. Because they cater to many types of consumers, and offer to same types of clothing as their oligopoly competitors it will be harder for other stores to compete.
ReplyDeleteHey Sydney, I don't really care whether the company moves here or not however I did enjoy the piece. I thought that overall you explained what was going on and how economics intertwines with the situation so anyone could understand. I would have wrote more about "decrease In revenue" (Para 2) for other stores in the mall. Great piece thank you, for the post!
ReplyDeleteIn This post you say that the three big clothing firms are and oligopoly. I find that troubling, in that they may altogether decide the prices they want to give out. If that happens then who can say anything else to make the prices go down.
ReplyDeleteSince Nordsrorm in Chicago was the closest one for many people all around, a lot of people will now go to the location at Mayfair because for many this is a lot closer than Chicago. This will increase their profits greatly because no one wants to drive all the way to Chicago. A lot of people might find that it is still too far away and they will find substitutes that are closer to home. Once people go there once it is not likely that they will find themselves there the next week unless they are close to the location. Many people will likely continue shopping at stores that are close to them that may have close to the same products as Nordstrom.
ReplyDeleteAdding Nordstrom to Mayfair will attract more customers to the mall as a whole because instead of going to Chicago, people in this area will be more likely to shop here. For me, adding a Nordstrom is more convenient because sometimes you need to buy nice clothes for nice events and such, so it's good that I don't have to go all over just to buy more of a formal outfit. I think that this high-end fashion store will survive at Mayfair because Milwaukee is so close along with other cities, so it definitely has a chance. However, because of the price I'm sure much more people would rather shop elsewhere, but I think the revenue will increase at least a little bit.
ReplyDeleteThis is very interesting because it shows the expansion of the market for clothing stores. Seeing how consumers would drive all the way down to Chicago just to buy some designer clothes from Nordstrom, there's no wonder why the company decided to build a new store much closer to home. However, the location of the new store at Mayfair would imply that the previous location would lose many Wisconsinite customers while still maintaining Chicago and Illinois customers. It may also imply that more Wisconsinite customers that wished to go to the store in Chicago but refused because of the distance would now come to the Nordstrom at Mayfair because it is more convenient. The previous store may lose customers for a short time, but in the long run I feel that this will be beneficial to the company now that 2 stores are racking up more revenue.
ReplyDeletePersonally I've never been to Nordstrom but it sounds like a big deal. Nordstrom will most definitely have a good impact on Mayfair mall because more consumers will approach it to check the store out and the malls total revenue will increase not only because of the sales Nordstrom will make but also because since more people will be attending to the mall even if their main interest is Nordstrom, they will most likely end up buying things in the other stores.
ReplyDeleteThis is a very interesting topic. Nordstrom has definitely not had a difficult time marketing their new location and will be a local hub for everyday people and possibly athletes from Milwaukee's professional sports teams as Nordstrom offers very high end clothing. This may increase the total revenue at the mall as more people may make the trip to Mayfair from a greater ways away due to the brand name respect Nordstrom commands. It will be interesting to see how other clothing stores in the mall respond to this new competition.
ReplyDeleteI can really relate to this post because Nordstrom is one of my favorite stores. Ever since I heard Nordstrom was coming to the area, I have not been able to stop talking about it; I even went to the store the second day it has opened! Nordstrom is a very big store that many people love, and I agree that the demand for Nordstrom in this area was very high. Now that the store has finally opened, some of the other big stores that you stated will start to lose profit because they offer similar products. To be able to show this, you could have looked to see the profit of Macy's, Boston Store, and Nordstorm and talk about them in your post. Overall, I believe this was a very accurate and relatable blog post.
ReplyDeleteSydney I love your topic! I agree bringing Nordstroms to Wisconsin will bring a lot of consumers to the Mayfair mall. It is also a convenient time to build because the holiday season is just around the corner. They will bring in a lot of revenue because Nordstroms sells a lot of designer and quality goods. On the other hand it really stinks for companies like Macy's and Boston Store. I know Boston Store is currently struggling because of the new Nordstroms coming in. Especially Boston Store because they offer similar designer goods. Also people are buying items from Nordstroms just to say they bought something from the new store. Overall, I thought this was a really great controversial topic to talk about.
ReplyDeleteOne of the details of this post that I found interesting was that Nordstrom opened in Milwaukee before New York City. When you mentioned that it was an oligopoly market structure, that made me think of the barriers it takes to enter the industry. Therefore, I believe that there are more barriers for Nordstrom to enter in New York City than there are in Milwaukee, considering there are most likely more department stores in New York and you mentioned there only being about three in the Milwaukee area. Concerning the success of the business, I do think there is a high demand for the product(s), however the prestige pricing may not appeal to all the consumers, which may affect their total revenue. Also, with the high tax-rate on clothes in Wisconsin, it may make their prices even steeper if the whole tax is put onto the consumers. Great job overall, it's a very recent and interesting topic with many economic factors.
ReplyDeleteI think this is a very good analysis of the economics of Nordstrom moving to Mayfair mall. I wonder, however, what the buyer or consumer profile is for Nordstrom. I want to know this to compare to what the market around Mayfair exists. I would expect a need for wealthy costumers which makes sense as there are a range of incomes in this area. However, there are also a lot of people who like the cheaper Marshall's, TJ Max or Kohls to get clothing. So I wonder if there will be a big enough consumer base with the luxurious taste that Nordstrom needs.
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ReplyDeleteI don't believe that the new Nordstrom will be as profitable as others expect it to be. I think that they are overpriced for a lot of the items that you can get at a similar store. I also think that Nordstrom Rack which is their clearance store located a few blocks down will become much more profitable because more people will be able to afford the clearance prices and still get the same name on the items.
ReplyDeleteWhile it may seem that the three department stores will be competitive and fighting to make a high profit, Nordstrom is quite different from the other stores. It's high prices and high end brands could either cause an increase or decrease in quantity demanded. More people might demand Nordstrom because they are looking for higher quality items, while other consumers may not have any interest in Nordstrom because of the price difference from other department stores. It is no doubt though, in these next few months Nordstrom will bring in great amounts of revenue. Because the next closest Nordstrom is in Chicago, this Nordstrom may bring people from all over Wisconsin to purchase items, and right in time for the holiday season!
ReplyDelete"With their brand recognition, there was no problem finding consumers that would pay the extra price for the great quality they hold" I'm surprised that this statistic is true, I would never have thought the demographic of people and their incomes would compare to New York City! However, if Boston Store and Macy's already have a successful oligopoly in the area, adding one more firm isn't too unreasonable. I predict that Boston Store, Macy's and even Nordstrom will have a gentle decrease in revenue because their buyers now have to choose between three different stores selling similar goods.
ReplyDeleteThis post was very appealing to me as I love browsing at Nordstrom. I agree with your statement that Nordstrom will attract more individuals to the Mayfair mall, including me. However, in my opinion, Nordstrom's products are overly priced and for some people not affordable; that is why I choose to browse rather than purchase items whenever in the store. I do believe that there is a high demand for their products, but the high pricing may not attract as many people to purchase them which may affect the company. Overall, great topic and good job including what we are learning by stating Nordstrom is an oligopoly market structure.
ReplyDeleteI like the in depth analysis of how you believe Nordstrom will thrive in Milwaukee, considering there are already giant retail clothing stores such as Boston Store and Macy's which bring in a lot of buyers. Nordstrom, however, being a more upper class clothing store might bring in some more wealthy customers which will increase their revenue and most likely the popularity. If this happens they might eventually branch out into a free standing store such as Kohl's. Hopefully Nordstom's will begin to thrive in Mayfair so it can eventually become an independent store.
ReplyDeleteBringing Nordstorm to Mayfair will be extremely beneficial for them because the demand for that quality of clothing with be high. Also opening that store will create some more jobs which will help the economy slightly. I found it interesting that Nordstorm opened in Milwaukee before New York. You would think that it would open in New York first because of the population, but than again it makes sense because New York is so much bigger that there would have to be more qualities needed to successfully open. I feel that for Mayfair mall that it would lose some customers in stores like Boston Store since Nordstorm is there instead. Over all the opening of Nordstorm will have many economic factors.
ReplyDeleteIt is interesting that Nordstrom opened in Milwaukee before New York. However I feel that between the two cities Nordstrom would be more successful in New York since the prices match those of New York stores. The demand for Nordstrom does not seem to be as high here than an inner city. I feel like in Milwaukee paying a lot for fashion isn't as appealing to consumers compared to New Yorkers. I wonder if the consumer demand will meet the supply of such a high end store.
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ReplyDeleteI didn't know that Nordstrom opened in Mayfair than in New York City. I found this to be a surprising fact because New York City is such a modernized and exciting town. They always have the best places to shop and is a city that everyone knows about. Maybe New York City couldn't afford to put in a Nordstrom or the people didn't show any interest in having one. In New York City there are tons of boutiques and places to shop so maybe they felt like it wouldn't be beneficial to the community. I liked how you describes the effects this store coming into Mayfair would have. It will generate lots of money because the amount of consumers the store will have. It will, like you said, have to compete with the other large firms in Mayfair as well. I am wondering, however, if Nordstrom might not be successful in the Mayfair community because of it's high prices and name. Will it go out of business in the first few months that it's opened?
ReplyDeleteHaving Nordstrom in Milwaukee will increase the money that is being taken in. People are going to travel down to Milwaukee. It's close to the holidays so Christmas shopping will begin and it will have a bigger income than most of the other stores. On that note other stores in Mayfair may not be happy with this company coming in because it will take the sales from their stores and that money will go right to Nordstrom. There is a high demand in the area for this store, many people have talked about it, and now its location is close enough to go there. I couldn't believe it when I saw that this store has opened up in Milwaukee before it hit New York. You would think that would be very rare considering New York is New York. I know a lot of people that are happy with this addition to Mayfair mall and it's on many peoples lists for Christmas shopping bringing in a bigger income for the store.
ReplyDeleteAt first I had to look up what Nordstrom was, and once I saw what it was I realized, Hey I would shop there, but also knowing that the store is being put up in Mayfair mall didn't seem to be a big thing. But finding out later on, that the only other store of Nordstrom was in Chicago. This store is going to bring people from Milwaukee and have them save money on gas just to make a trip to shop at the retail store. It's really going to help in the market for this store because more people are willing to probably come to Milwaukee if they were father away from Illinois. Retail jobs will increase around Milwaukee I feel because it is a city and new retail shopping centers will be put up. A more urban place.
ReplyDeleteYes of course it will help boost the economy because of the high price in the clothing but, as for the amount of money in the peoples pockets will decrease massively. For the most part someone will go to a much cheaper clothing store in order to save money or not go shopping for new clothes at all. This would also only provide a small amount of jobs and more than likely the production of the clothes would be done overseas where it could be made cheaper and for a cheaper work force therefore having more negative consequences than positive.
ReplyDeleteIf the opening of the new Nordstrom in Mayfair decreases the amount of profit the other stores are making, there is a possibility that some people will lose their jobs because the company does not have enough money to keep them. Though both Macy's and Boston Store are bigger chains than Nordstrom, the new available products that they offer, can draw more customers in. Since Nordstrom is scarce in Wisconsin, the price of the goods might be higher than that of Macy's or Boston. After losing valuable customers the prices and its rival stores might decrease the cost of their goods to draw customers back. Also if it stands as an oligopoly, and the prices of the higher end stores do not change customers might turn to smaller franchises such as TJ Maxx, Kohls, Target, or Marshalls, who offer similar goods at cheaper prices.
ReplyDeleteWhy go to Nordstrom and have to pay the extra money for something you could find at another department store for cheaper. I could find a pair of pants at Kohl's, or Macy's for about $20 cheaper and I wouldn't have to go all the way to Mayfair when I could go to Delafield or Brookfield I would same so much money that way. And why are the opening a store in Mayfair it doesn't seem right from an economic standpoint, at first they would make money opening week but then sales will die down to what the other department store make. Overall it kinda seems like a waste of time and money
ReplyDeleteSomething I found interesting about the opening of the new Nordstrom was the fact that they opened a Nordstrom rack (which is basically a Nordstrom outlet, or an enitre store devoted to Nordstrom clearence items) in the strip mall less than five minutes from Mayfair. This plan formulated by their corporate office would allow the Nordstrom brand to appeal to a wider demographic, because those who are willing to pay a higher price for new, high quality products can go to Nordstrom, while people who are not willing to pay so high a cost can visit the Nordstrom rack and buy high quality clothes that are last-season. That way, consumers looking for cheaper options can still benefit Nordstrom, instead of heading to competitors such as TJ Maxx or Kohls.
ReplyDeleteI don't believe that the new Nordstrom will be as profitable as others expect it to be. I think that they are overpriced for a lot of the items that you can get at a similar store. I also think that Nordstrom Rack which is their clearance store located a few blocks down will become much more profitable because more people will be able to afford the clearance prices and still get the same name on the items.
ReplyDeleteIt does not surprise me that Nordstrom is doing so well right now, I guess evidently that is what happens at the launch of any store. Other name brand department stores like Boston Store and JC Penny are most likely experiencing the changes in their (decrease in sales) that have been brought on by the launch of the Nordstrom store. Consumers are attracted to name brand clothing and fancy things, however not everyone wants to pay the designer prices. Before large retail department stores like Boston store and JC Penny were each others only competition, now with a third competitor will we start to see the older stores take on different technique of getting consumers to buy their products over the new name brand products at Nordstrom.Competition is what drives the free market we have, therefore I believe that the opening of this store is substantial for the economy.
ReplyDeleteI know that bringing Nordstrom to Mayfair Mall is a big deal. In the next few months, I foresee sales being very high because of just opening and the holidays. In the long run though, I'm not sure if this was the best option. The market in Milwaukee is much different than the market in Chicago. From my personal experience, it seems like high-end fashion is valued more in Chicago than it is in Milwaukee. Not saying that people don't care about it here, I just don't see the market. Also, from what I've been told, Nordstrom does not have any coupons. That would be a big disadvantage for them considering Boston Store and Macy's are always running sales which bring in customers.
ReplyDeleteWhile Nordstrom is in popular demand for its high quality merchandise, I do not think that its popularity will increase the employment rate. If anything, Nordstrom might decrease the workforce by creating competition for other department and clothing stores. With more people shopping at Nordstrom, less will be shopping at the other anchor stores (such as Macy's and Boston Store). The other anchor stores' loss in business and profit might force these stores to cut back on the number of employees. However, I do agree that Nordstrom will increase the competition and force other suppliers to create more differentiation between their products. Retailers will also need to advertise more -- especially with the holidays just around the corner -- to increase consumer demand. Nordstrom's success may threaten other stores, but it will also attract buyers looking for more options.
ReplyDeleteI completely understand why Boston Store or Macy's sales have gone down recently because of Nordstrom opening up near by. Since Nordstrom has taken some of the sales from these other companies they will have to implement new marketing techniques in order to keep consumers interesting in their businesses and not the new business. Also Nordstrom will need to start to create new marketing ideas because the "new business" will only last so long and consumers will become less interested and go back to the normal stores of Boston Store and Macy's.
ReplyDeleteThe most interesting thing that I took from this article is the fact that Milwaukee was chosen over New York. I would've thought that the demographics in New York would be much better and sustainable than the demographics in Milwaukee. In addition to that the demand of more retail space has been interesting too. But could malls like Mayfair eventually be too big? Could stores like Macy's and Boston Store close down, and what would the do with that space.
ReplyDeleteI am very excited about this new Nordstrom in Wisconsin! Who will not be excited about this new store would be other large department stores in Mayfair such as Boston Store, JC Penney's, and Macy's. I agree that the press has helped them immensely with marketing their appearance. Consumers will have a lot of interest in the store and then Nordstroms demand for their products will increase while demand in the other department stores will decrease. Hopefully the other departments store creates different interests that will lure customers away from Nordstrom.
ReplyDeleteI've never really paid much attention to stores and brands setting up shop in the Milwaukee area, but this is major for Mayfair Mall. I recognize the Nordstrom brand, although I don't know what they sell. And the fact that they are beginning here before New York is really saying something. Could this potentially attract other large, premium brands to the Milwaukee area? It will be interesting to see what happens following the addition of this store.
ReplyDeleteI love Nordstrom and I am excited for it to finally be in Wisconsin. It will be competition to lots of other stores for a while since it is so new and shoppers won't be going to the older department stores but instead going to Nordstrom. Also black friday will be coming up and people will want to go there to get some clothes for presents and good deals since it is so new and they won't have to order online or go all the way to chicago just to find something that they want from Nordstrom. The other department stores should find ways to interest customers away from Nordstrom because otherwise it could be bad for their company.
ReplyDeleteI had never known that Nordstrom was a clothing market until right now. Although they seem to be pricey, the quality that they offer must outweigh the price in order for people to buy it over other brands that sell similar clothing. But what would that mean for other people who decide to buy a cheaper product over the normal goods? Sometimes inferior goods can be the same quality as the ones that cost more. It's all just material, after all. I'm curious to see how well they do.
ReplyDeleteThis new store in Wisconsin will impact a lot! Definitely the different variety of brands and amount of products sold but as well as profit for other department stores. Nordstrom stocks a lot of high en brands that maybe Boston Store or JC Penny does not stock. This will impact the profit for these other businesses. The Nordstrom will be nice to add diversity in the Mall but it will impact the other stores.
ReplyDeletePersonally, I am very excited about the new Nordstrom. I’ve heard a lot of buzz over the opening. I think that the store is almost an attraction because it is the only one in Wisconsin. It will bring a lot more people to the Mayfair area and will advance the economy. I can also see the profits of JcPenney, Boston Store, and other departments store close by decreasing due to the new Nordstrom. The area of Mayfair has continued to add new stores already after the release of Nordstrom. The added the very popular “Container Store”. I hope that they continue to add more popular stores to the area.
ReplyDeleteIt's about time that Mayfair got a Nordstrom because Mayfair has been slacking good quality stores lately. I believe that Nordstrom will bring a variety of different options and it will definitely increase in popularity. Nordstrom will be a top selling store at Mayfair.
ReplyDeleteThis topic caught my attention because I love to shop at Nordstrom! This is a major thing for Mayfair to do but from what i've herd, the store doesn't have any coupons, Macy's and other stores are always having sales that bring in coustmurs, so Nordstrom not having any coupons will be a disadvantage.
ReplyDeleteI've heard the hype about this new store going in, it seems to have quite the hype, however I don't know much about it. I'm sure that typical buyers or Nordstrom lovers are excited about the improved opportunity cost of going to a now local store, rather than driving to Chicago. I never really thought of stores like JCPenny and Boston store forming an oligopoly market structure, but with this new Nordstrom, it makes sense. I wonder what barriers there were for Nordstrom to enter this market, being as there are only a small group of firms like Nordstrom. Hopefully other firms will keep prices low to create competition with Nordstrom, and all together they don't collude and raise prices as a group.
ReplyDeleteI'm excited that Nordstrom is finally at Mayfair however other competing stores such as Macy's and Boston store are going to have a hard time keeping up with Norstroms. Even though Nordstrom prices are higher, their product is better and have more of a variety of designer clothes and can appeal to a lot more people.
ReplyDeleteThough Nordstrom is entering an oligopolistic market structure, I don’t think there is any risk of collusion or cartels forming between Nordstrom, Macy’s, and Boston Store. Each has its own brand recognition and consumer base that would be upset if the brands merged into one store. This brand loyalty also offers some stability in income for Macy’s and Boston Store because even though there is a new store, loyal consumers will not be swayed from their favorite brand.
ReplyDeleteThe most interesting thing from this article is that is how Milwaukee was even able to be chosen over New York. I would have thought that New York's demographics which would have have been much better than Milwaukee's just because of the fact that New York is much bigger than Milwaukee ever was or even will be. The growing population really helps for more consumers with different needs and wants.
ReplyDeleteThis is an interesting topic because like you said, Nordstrom now forms a Oligopoly with the three other department stores in the area. Do you think the barriers are too high for other stores to enter this market? Since the demand will be higher at Nordstrom than at any other store, could it drive the other stores out of business making it a monopoly?
ReplyDeleteThe opening of another big name store could also be contributing to an Monopolistic Competition. Each of the stores will have to compete not only on price but also the quality of their goods. The new competition can also be good for consumers as prices will drop.
ReplyDeleteI really liked this post because I am a big fan of this store, however, I was never a fan of the long drives that I would have to take to get there. Usually I just shop at Nordstrom Rack which is located right across the street from Mayfair. The opportunity cost of shopping at the Rack instead of the actual store for me was better than the long drive to Chicago. Now, however, since there is an actual Nordstrom store close to me I will be shopping there instead of Nordstrom Rack since they are both in such close proximity to one another. I wonder if other people will feel the same and how this opening will affect Nordstrom Rack.
ReplyDeleteI really liked this post because I am a big fan of this store, however, I was never a fan of the long drives that I would have to take to get there. Usually I just shop at Nordstrom Rack which is located right across the street from Mayfair. The opportunity cost of shopping at the Rack instead of the actual store for me was better than the long drive to Chicago. Now, however, since there is an actual Nordstrom store close to me I will be shopping there instead of Nordstrom Rack since they are both in such close proximity to one another. I wonder if other people will feel the same and how this opening will affect Nordstrom Rack.
ReplyDeleteI have never been to Nordstrom because of its lengthy distance away from the area, but have heard great things about it. Now that Nordstrom is closer in the area, I may check it out since there is not as large of an opportunity cost to drive there. I think it was a smart decision for Nordstrom to move to Wisconsin because they can draw more people in due to there being only two other major competitors in the region. I must say it was a risk opening up another location because there were some barriers to entry, but now that they have established near Mayfair, the company is able to vary their prices since people will still buy their clothing. anyways.
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