Pricing Strategies and Sustainable Supply Chains: Insights and Discussions

 A retailer like Nordstrom can apply revenue management by aligning pricing and product availability with differences in customer segments. Nordstrom serves both premium, service-sensitive customers and price-sensitive shoppers. Revenue management allows Nordstrom to charge full prices which are higher at their main stores and during the early part of a season when demand from fashion-driven customers is strong. Additionally, they can offer markdowns, clearance sales, and online-only deals later in the season to capture more price-sensitive customers without reducing the willingness to pay of early buyers. Nordstrom can also optimize the timing and scale of markdowns on seasonal apparel. Early in the season, prices remain stable; as inventory risk increases, strategic markdowns maximize revenue while clearing stock. Additionally, Nordstrom can allocate scarce high-demand items to premium stores first, reserving inventory for customers with higher willingness to pay. Online liquidation or transfer to Rack stores (its outlet division) supports revenue from lower-price segments. For in-store appointments (styling, tailoring, personal shopping), Nordstrom can carefully overbook to account for no-shows, just as airlines do, maximizing utilization of fixed labor resources.