tence that every new store have a critical mass of Nordstrom managers,
buyers and salespeople. When staffing the Paramus, New Jersey store,
5000 applicants competed for 800 openings. Over 200 of these slots were
filled by former Nordstrom employees transferred in from across the
United States. The company wanted a sufficient number of role models to
guarantee replication of the ‘Nordstrom Way’.
The trend toward consolidation by Nordstrom’s competitors had been
driven by a variety of perceived economies of scale. In particular, the
promise of sophisticated management information systems appeared to
offer these far-flung retailing conglomerates a means of making the most
efficient use of inventory, enhancing stock turnover, fine-tuning buying at
378 Relationship Marketing
Table 5.3.2 Nordstrom Inc. and subsidiaries, consolidated balance sheets ($000)31 January 1991 1990Assets
Current assets:
Cash and cash equivalents 24 662 33 051
Accounts receivable, net 575 508 536 274
Merchandise inventories 448 344 419 976
Prepaid expenses 41 865 21 847Total current assets 1 090 379 1 011 148
Property, buildings and equipment, net 806 191 691 937
Other assets 6019 4335Total assets 1 902 589 1 707 420Liabilities and shareholders’ equity
Current liabilities:
Notes payable 149 506 102 573
Accounts payable 204 266 195 338
Accrued salaries, wages and taxes 128 697 122 607
Accrued expenses 34 668 29 080
Accrued income taxes 24 268 12 491
Current portion of long-term liabilities 10 430 27 799Total current liabilities 551 835 489 888
Long-term debt 457 718 418 533
Obligations under capitalized leases 21 024 22 080
Deferred income taxes 45 602 43 669
Contingent liabilities (Note 11)
Shareholders’ equity 826 410 733 250Total liabilities and shareholders’ equity 1 902 589 1 707 420