The Person Who Came Up with This Idea at Nordstrom Deserves to Be Fired

Price Discrimination Gone Wrong

Today, I want to share a frustrating experience I had at Nordstrom this weekend. As some of you may know, I wanted to retire my “dad shoes” from New Balance to the more hip and age-appropriate On shoes. I went to Nordstrom and found the perfect pair, but there was a problem.

The shoes I wanted were on sale, but the sale was only for Nordstrom cardholders! Fine. Economically, I understood this was price discrimination and a great way to reward loyal customers. I was happy to pay the full price. However, despite my willingness to pay the total price, Nordstrom refused to sell me the shoes!

I was not allowed to purchase the shoes, not even at the total markup price! This policy makes absolutely no sense to me. I was a customer ready to purchase, but they turned me away.

Come Back on Monday

Seeing my confusion, the attendant repeated herself. She suggested I wait until Monday, return to the store, and get the shoes at retail price. If I didn’t want to wait, my only option was to sign up for a Nordstrom card. I refused both options and walked away. See, the attendant forgot about a third option: go home, purchase the shoes online, and have them delivered to me by Monday.

This experience has left me baffled. What kind of sense does this policy make? I understood that some economic forces might be at play. Here is how I processed this situation

Leveraging FOMO

Nordstrom wants to nudge me to join their card membership. By creating this uncomfortable situation and leveraging the “fear of missing out,” they would nudge me into becoming a member. However, this approach has a cost. Not only did they lose a sale today, but they have also reduced customer loyalty and incentivized me to find alternative shopping options. The Nordstrom policy might have been effective had I not had a substitute, the plethora of online shopping options with free delivery.

Nordstrom just lost a customer because of their illogical policy. I cannot understand why anyone would come up with such an idea, and I no longer want to support a company with such poor economic policies. I might be a bit dramatic here, but you get the gist.

Unboxing My New Shoes

I purchased the shoes online as I walked out of the store. I found a pair of shoes that I liked even more than the ones I had picked at Nordstrom. If you want to see the unboxing, follow me on Instagram (@EconWithDrA).

If you have a sensible explanation of Nordstrom’s policy, please comment. I would love to know.

Yours Truly,

Dr. A