Nordstrom Gets Business Intelligence

Nordstrom Inc. is turning to technology to help it maximize the product offerings for its customers.

The Seattle-based retailer is aligning with software giant Oracle to use its Retail Size Profile Optimization software system, which will be used for all apparel, footwear, cosmetics and accessories for women, men and children.

The system is aimed at helping Nordstrom create optimal profiles of size distribution by merchandise categories and by each store. It should help the retailer analyze historical sales data to create unique store-size profiles and help align purchase-order quantity details with customer demand. For example, when establishing order quantities, Nordstrom will have improved insight into the right amount of each size to order and the optimal amount needed in each store location.

By helping to ensure that inventory is aligned to customer demand using appropriate size profiles, the Oracle Retail application is also expected to help Nordstrom achieve cost savings through reduced markdowns and inventory levels.

The profiles that Oracle Retail Size Profile Optimization creates can also be used to inform assortment planning and allocation systems, helping to boost sales and profitability. Retailers also use the application to reduce stock-outs and end-of-season markdowns due to size limitations. —Robert McAllister