“Market Cap $11.93 B As of May 2014
At a Glance
- Industry: Department Stores
- Founded: 1901
- Country: United States
- CEO: Blake Nordstrom
- Website: www.nordstrom.com
- Employees: 62,500
- Sales: $12.54 B
- Headquarters: Seattle, Washington
#909 Global 2000
- #774 in Sales
- #821 in Profit
- #1967 in Assets
- #928 in Market value
Nordstrom, Inc. retails apparel, shoes, cosmetics and accessories. The company owns and operates stores for shoes, accessories for men, women and children. It operates through two reportable segments: Retail and Credit. The Retail segment includes ‘Nordstrom’ full-line stores, off-price ‘Nordstrom Rack’ stores, jeffrey boutiques and a clearance store that operates under the name ‘Last Chance’. It also offers brand name and private label merchandise focused on apparel, shoes, cosmetics and accessories. The Credit segment includes the company’s wholly owned federal savings bank, Nordstrom fsb, through which it provides a private label credit card, Nordstrom VISA credit cards and debit card for Nordstrom purchases. It was founded by John W. Nordstrom in 1901 and is headquartered in Seattle, WA.“
In 1887, 16-year-old John W. Nordstrom left his home in Sweden for the promise of New York City. He arrived with $5 and not a word of English to his name.
The first years in the land of opportunity were hard. John labored in mines and logging camps while crossing the country to the west coast of Washington. One morning in 1897, he saw a newspaper headline: “Gold Found in the Klondike in Alaska”; he made the decision that day to leave for Alaska. The very next day he bought his ticket. With the hard labor, rough terrain and overabundance of eager workers, things were no easier there. John persevered and within two years earned $13,000 from a gold-mine stake.
John returned to Seattle eager to invest his money. He reunited with Carl Wallin, a friend from his Alaska days who owned a shoe-repair shop in downtown Seattle. In 1901, they opened Wallin & Nordstrom, a small downtown shoe store and the humble beginning of what was to become Nordstrom, Inc.
From the start, John’s approach to business was to provide exceptional service, selection, quality and value. The idea resonated with a devoted customer base, and in 1923 the partners added a second store. In 1928, John retired and sold his share of the company to his sons Everett and Elmer. Carl Wallin retired a year later and also sold his share to the Nordstrom sons. John’s third son, Lloyd, joined the team in 1933.
A GROWING REPUTATION
By 1960, the downtown Seattle shoe shop had become the largest shoe store in the country, and the company, now with eight locations in Washington and Oregon, was the largest independent shoe chain in the United States.
Looking for new ways to spread its wings, Nordstrom ventured into the women’s clothing market with the purchase of Seattle-based Best Apparel in 1963. With the purchase of a Portland, Oregon, fashion retailer three years later, Nordstrom now offered Northwest customers a selection of shoes and apparel under the new name Nordstrom Best. Men’s and children’s wear were added in 1966; business prospered and two new Washington stores followed soon after.
In 1968 the three Nordstrom brothers handed the company over to the third generation: Everett’s son Bruce, Elmer’s sons James and John, Lloyd’s son-in-law Jack, and family friend Bob Bender.
A NATIONAL EXPANSION
Going public in 1971, the company was formally renamed Nordstrom, Inc. Two years later, annual sales surpassed $100 million and the company was recognized as the largest-volume fashion specialty store on the West Coast.
In 1973, the first Nordstrom Rack opened in Seattle as a clearance outlet for the full-line stores, and by 1975 the company had expanded into Alaska. Three years later, Nordstrom entered the competitive California market and by 1988 had opened its first East Coast store in Virginia.
At the start of the new millennium, Nordstrom entered several strategic alliances. From 2000 to 2007, the company owned Façonnable, an upscale European apparel collection for men and women. In 2005 the company purchased a majority interest in Jeffrey, two luxury fashion boutiques in Atlanta and New York City’s Meatpacking District. In 2011, Nordstrom entered the online private sale market by acquiring Los Angeles-based HauteLook, and also purchased minority stakes in kidswear brand Peek. In 2012, Nordstrom became the only major U.S. retailer to sell a broad assortment from the renowned British fashion brands Topshop and Topman.
From 2011 to 2013, Nordstrom operated an independent charity-concept store called treasaure&bond in Manhattan’s SoHo neighborhood. The boutique donated 100% of its profits to New York children’s charities.
Today, a fourth generation of the Nordstrom family, along with an executive team, helms the company in partnership with a talented team of innovators and fashion leaders. From one tiny shoe store, Nordstrom has grown into a fashion specialty chain with global reach. It offers an unparalleled selection of shoes, clothing and accessories and an extensive range of services to make shopping fun and convenient. In 2011, the company achieved an all-time record for total net sales at $10.5 billion.
Nordstrom currently operates a total of 271 stores located in 36 states, with 117 full-line stores, 151 Nordstrom Racks, two Jeffrey boutiques and one clearance store. Looking ahead, the company plans to open three new full-line stores in 2014, followed by the opening of its first Manhattan store in 2018. Nordstrom expects to reach a total of 230 Rack stores by 2016.
Plans are under way to open Nordstrom’s first full-line stores in Canada at premier shopping centers in Calgary, Ottawa, Toronto and Vancouver.
MORE WAYS TO SHOP
Nordstrom has offered 24-hour-a-day shopping access at Nordstrom.com since 1998—now with free shipping and returns. The company has taken advantage of mobile technology to better serve customers with shopping apps, on-the-spot item location and register-free transactions. This has put the entire Nordstrom experience squarely in the hands of customers, where they’re finding countless ways to share it, Tweet it, Pin it and make it their own.
In store or online, wherever new opportunities arise—Nordstrom works relentlessly to give customers the most compelling shopping experience possible. The one constant? John W. Nordstrom’s founding philosophy: offer the customer the best possible service, selection, quality and value.”
*Information from Forbes.com and Nordstrom.com
**Video published on YouTube by “cityofinfluence“