As the trademark piano received a final tuning, sales help scurried around the new Nordstrom Inc. department store unpacking the remaining boxes, rearranging clothes racks and getting to know the inventory. The opening of the Nordstrom store at the Garden State Plaza shopping mall in Paramus, N.J., marks the retailer's first foray into the fiercely competitive Northeast. The official debut occurs Friday when the 245,000-square-foot store opens for business. Members of the media were given a preview tour of the store Tuesday. Operating in this area might pose the biggest challenge yet for the West Coast chain that has been migrating eastward as part of an ambitious expansion. A struggling regional economy has shaken consumer confidence and crimped spending. Crisis in the Middle East could further curb retail spending as the critical holiday season approaches. Nonetheless, Nordstrom executives seem optimistic about entering the market and private analysts say the retailer stands a good chance to thrive here. Its service-oriented brand of retailing, combined with broad assortments of reliable quality merchandise, will give it an edge over rivals with less favorable reputations, analysts say. ``I think it's probably one of the best _ if not the best _ department stores in the country,'' said Carl Steidtmann, chief economist at Management Horizons, the retail management and market research division of the accounting firm Price Waterhouse. ``The fact that the competition is in such a state of disarray might make it a good time to go into the Northeast.'' Richard Pyle, a retail analyst at Piper Jaffray & Hopwood Inc., said Nordstrom, which focuses on women's, men's and children's fashions, shoes and accessories, is in far better financial shape than its competitors. Some department stores, such as Macy's _ which is a Nordstrom neighbor at the Garden State Plaza _ are courting customers aggressively to boost business and pay off debts. Others, such as Saks Fith Avenue, are adjusting to life under new owners who are closely monitoring bottom lines. The 61-store Nordstrom chain dates back to 1901 when Swedish immigrant John W. Nordstrom founded a Seattle shoe shop with money made mining gold in Alaska. Nordstrom still emphasizes shoes; the Paramus store boasts an inventory of some 70,000 ladies' shoes and 30,000 men's. The chain has historically prided itself on top-notch service and stories abound about its sales associates going to unusual lengths to please people. ``Nordies'' have been known to personally deliver merchandise to customers' homes and to write thank-you notes to customers _ typically on their own time. The legendary service has been a key to landing customers in new markets. As elsewhere, the Paramus store employs personal shoppers who will help customers select apparel, assemble outfits and accessorize. A concierge stationed near the entrance will steer customers in the right direction and handle special requests. Shoppers have three restaurants to choose from on the store's three levels and a spa offering massages, facials, manicures, pedicures and waxing. James F. Nordstrom, one of three descendents of the founder who currently bear the title co-chairman, said shoppers appreciate being treated well no matter what part of the country they live in. Apart from minor adjustments in merchandise mix, he said there have been no special adaptations made in bringing the Seattle-based retailer east. The chain already operates two stores in the Virginia suburbs of Washington and intends to open two more in New Jersey over the next two years, plus one in New York in 1993. Its growth strategy calls for about four openings a year. ``We just think customers like a lot of selection, good quality and to be treated nicely,'' he said in a telephone interview from the company's headquarters. One blot on the Nordstrom name appeared earlier this year when the Washington state Department of Labor and Industries, acting after a union complaint, ruled that the company has failed to pay employees for some of the extras they provide. The agency ordered Nordstrom to properly compensate employees for work and to pay back wages. Industry analysts say Nordstrom has weathered the bad publicity without much damage to its reputation. A $15 million reserve the company set aside to pay back wage claims should be adequate. James Nordstrom said the labor problems, which have been confined mostly to the Seattle area, haven't impaired the retailer's results. Many employees have proven their commitment to the company, he said, by paying their own way to transfer to new stores. The Paramus store will have about 100 sales associates who have previously worked elsewhere for Nordstrom. An additional 100 managers were transferred by the company, which has a policy of promoting from within. About 900 employees overall will work at the Garden State Plaza store. Nordstrom's sales and profits haven't been as impressive lately as they had been in the recent past. Earnings slid 20 percent in the first half of this year to $49 million on sales of $1.36 billion. That deterioration came after a 7 percent income drop last year to $115 million despite a 14.7 percent sales gain to $2.7 billion. Nordstrom also has felt the pinch of the currently sluggish retail climate. Co-chairman Nordstrom said, ``It's fair to say that our planned increase in sales is greater than the increase we're experiencing.'' He said the retailer is taking a conservative approach to the coming season and will tighten inventory slightly. If business doesn't measure up chainwide for a prolonged period, Nordstrom may scale back its expansion plans. ``We're not going to leverage ourselves and grow for growth sake,'' Nordstrom said, noting that some openings may be delayed if necessary. At the Paramus store, retail analysts say the company is hoping sales will exceed $100 million in the first year. Nordstrom executives declined to disclose projections.
