About Nordstrom, Inc.

Service with a smile is a part of Nordstrom's corporate culture. One of the nation's largest upscale apparel and shoe retailers, Nordstrom sells clothes, shoes, and accessories through more than 115 Nordstrom department stores and more than 215 off-price outlet stores (Nordstrom Rack) in nearly 40 states and online. It also operates a pair of Jeffrey luxury boutiques, a "Last Chance" clearance store, online private sale site HauteLook, and personalized clothing service Trunk Club. With its easy-return policy and touches such as thank-you notes from employees, Nordstrom has earned a reputation for top-notch customer service. Nordstrom family members, who own about 25% of the retailer's stock, closely supervise the chain.

Operations

The family-run company operates two business segments: retail and credit. The Retail segment accounts for the vast majority (98%) of Nordstrom's revenue and includes sales from its full-line and Nordstrom Rack stores as well as from its Nordstrom.com, nordstromrack.com, Hautelook.com, Trunk Club.com, Jeffrey, and its Canadian operations.

Nordstrom's Credit segment (2% of sales) owns a federal savings bank, Nordstrom fsb, through which it offers a private-label credit card, two co-branded Nordstrom VISA cards, and a debit card for Nordstrom purchases. The cards also include a loyalty program that rewards shoppers depending on their spending levels.

Nordstrom's full-line stores generate 50% of its net sales, while its Nordstrom Rack stores contributed roughly 25%. Its fast-growing Nordstrom.com channel generated 15% of net sales, while its Nordstromrack.com and Hautelook channels combined made up around 5%.

By product, the company generates over 30% of its net sales from women's apparel, while shoe sales make up nearly 25%. The rest of its net sales came from men's apparel (15%), women's accessories (10%), cosmetics (10%), kid's apparel , and other items (5% each).

Geographic Reach

Nordstrom has some 345 full-line and Nordstrom Rack stores in 40 US states, as well as three Nordstrom full-line stores in Canada. California is the retailer's largest market with over 80 full-line and Rack stores. Other major markets for the chain include Florida, Texas, and Washington.

Financial Performance

Nordstrom shrugged off industry-wide malaise to record 2% revenue growth in fiscal 2017. Sales of $14.8 billion were a result of innovative approaches to customer service and store openings. The company re-imagined the role of the department store in the internet age, driving foot traffic through a program of exclusive pop-up stores and new retail concepts. While comparable store sales still fell (by less than 1%), the figure compares favorably to its peers such as JCPenney and Macy's. Off-price sales through Nordstrom Rack increased 11% due to 21 store openings. Sales at the company's credit card business softened slightly.

Net income fell 41% to $354 million due to higher cost of sales and SGA expenses. Nordstrom ramped up marketing spend and invested in technology and supply chain to open up new digital capabilities.

Cash from operating activities fell 33% to $1.6 billion due to a particularly high fiscal 2016 after it sold its credit card receivables. When excluded, cash increased due to improvements in working capital.

Strategy

Department stores across the US are having a hard time of it having found themselves somewhat outdated as consumers gravitate increasingly towards the internet and small, brand-specific stores. Revenue at stalwarts such as JCPenney and Macy's are eroding, but 116-year-old Nordstrom is proving more adaptable than most.

New ideas such as short-term pop-up shops and link-ups with emerging designers promote a discovery dynamic and give millennials -- the most department store resistant consumer group -- social media currency and thus reason to visit stores.

It has also found new ways to leverage online, such as allowing customers to pre-select clothing and book a changing room to try them on in. Customers can also pay by text.

Nordstrom also continually expands and refreshes its store base. In 2016 it opened 27 new stores (and closed one), of which 21 were Nordstrom Rack discount stores. Indeed, the company is pumping up Nordstrom Rack at a fast pace to entice the less affluent consumer.

In October 2015, the company sold off a substantial majority of its US Visa and private label credit card portfolio to TD Bank Group, and entered into an agreement for the bank to be the exclusive issuer of Nordstrom's consumer credit cards.

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Nordstrom, Inc.

1617 6th Ave
Seattle, WA 98101-1707
Phone: 1 (206) 628-2111
Fax: 1 (206) 373-4035

Stats

  • Employer Type: Public
  • Stock Symbol: JWN
  • Stock Exchange: NYSE
  • Co-President: Blake W. Nordstrom
  • Co-President: Peter E. Nordstrom
  • Co-President: Erik B. Nordstrom
  • 2017 Employees: 72,500

Major Office Locations

  • Seattle, WA

Other Locations

  • Anchorage, AK
  • Chandler, AZ
  • Phoenix, AZ
  • Scottsdale, AZ
  • Tucson, AZ
  • Arcadia, CA
  • Bakersfield, CA
  • Brea, CA
  • Canoga Park, CA
  • Cerritos, CA
  • Chino, CA
  • Colma, CA
  • Commerce, CA
  • Corte Madera, CA
  • Costa Mesa, CA
  • Culver City, CA
  • East Palo Alto, CA
  • Escondido, CA
  • Fremont, CA
  • Fresno, CA
  • Glendale, CA
  • Huntington Beach, CA
  • Irvine, CA
  • Laguna Hills, CA
  • Los Angeles, CA
  • Mission Viejo, CA
  • Montclair, CA
  • National City, CA
  • Newark, CA
  • Ontario, CA
  • Orange, CA
  • Oxnard, CA
  • Palm Desert, CA
  • Palo Alto, CA
  • Pleasanton, CA
  • Redondo Beach, CA
  • Riverside, CA
  • Roseville, CA
  • Sacramento, CA
  • San Bernardino, CA
  • San Diego, CA
  • San Francisco, CA
  • San Jose, CA
  • San Leandro, CA
  • San Marcos, CA
  • San Mateo, CA
  • Santa Ana, CA
  • Santa Barbara, CA
  • Temecula, CA
  • Thousand Oaks, CA
  • Upland, CA
  • Walnut Creek, CA
  • Woodland Hills, CA
  • Boulder, CO
  • Broomfield, CO
  • Colorado Springs, CO
  • Denver, CO
  • Englewood, CO
  • Lakewood, CO
  • Littleton, CO
  • Lone Tree, CO
  • Farmington, CT
  • Washington, DC
  • Newark, DE
  • Boca Raton, FL
  • Brandon, FL
  • Clearwater, FL
  • Coral Gables, FL
  • Gainesville, FL
  • Jacksonville, FL
  • Miami, FL
  • Naples, FL
  • Orlando, FL
  • Palm Beach Gardens, FL
  • Sunrise, FL
  • Tampa, FL
  • University Park, FL
  • Wellington, FL
  • Alpharetta, GA
  • Atlanta, GA
  • Buford, GA
  • Honolulu, HI
  • Cedar Rapids, IA
  • Dubuque, IA
  • West Des Moines, IA
  • Boise, ID
  • Chicago, IL
  • Naperville, IL
  • Northbrook, IL
  • Oak Brook, IL
  • Orland Park, IL
  • Schaumburg, IL
  • Skokie, IL
  • Indianapolis, IN
  • Schererville, IN
  • Lenexa, KS
  • Overland Park, KS
  • Boston, MA
  • Braintree, MA
  • Burlington, MA
  • Natick, MA
  • Peabody, MA
  • Westwood, MA
  • Annapolis, MD
  • Baltimore, MD
  • Bethesda, MD
  • Columbia, MD
  • Gaithersburg, MD
  • Towson, MD
  • Upper Marlboro, MD
  • South Portland, ME
  • Clinton Township, MI
  • Grand Rapids, MI
  • Novi, MI
  • Troy, MI
  • Bloomington, MN
  • Ballwin, MO
  • Saint Louis, MO
  • Charlotte, NC
  • Durham, NC
  • Cherry Hill, NJ
  • Edison, NJ
  • Freehold, NJ
  • Livingston, NJ
  • North Bergen, NJ
  • Paramus, NJ
  • Rockaway, NJ
  • Short Hills, NJ
  • Wayne, NJ
  • Henderson, NV
  • Las Vegas, NV
  • Brooklyn, NY
  • Flushing, NY
  • Garden City, NY
  • Huntington Station, NY
  • Manhasset, NY
  • New York, NY
  • Westbury, NY
  • White Plains, NY
  • Beachwood, OH
  • Beavercreek, OH
  • Cincinnati, OH
  • Cleveland, OH
  • Columbus, OH
  • Westlake, OH
  • Oklahoma City, OK
  • Tulsa, OK
  • Beaverton, OR
  • Clackamas, OR
  • Eugene, OR
  • Happy Valley, OR
  • Portland, OR
  • Salem, OR
  • Tigard, OR
  • Allentown, PA
  • Elizabethtown, PA
  • King Of Prussia, PA
  • Philadelphia, PA
  • Pittsburgh, PA
  • Willow Grove, PA
  • Providence, RI
  • Columbia, SC
  • Arlington, TX
  • Austin, TX
  • Dallas, TX
  • El Paso, TX
  • Frisco, TX
  • Houston, TX
  • Hurst, TX
  • Plano, TX
  • San Antonio, TX
  • Southlake, TX
  • Sugar Land, TX
  • Sunset Valley, TX
  • The Woodlands, TX
  • Farmington, UT
  • Murray, UT
  • Salt Lake City, UT
  • Sandy, UT
  • Arlington, VA
  • Dulles, VA
  • Fairfax, VA
  • Mc Lean, VA
  • Norfolk, VA
  • Richmond, VA
  • Sterling, VA
  • Woodbridge, VA
  • Algona, WA
  • Bellevue, WA
  • Lynnwood, WA
  • Spokane, WA
  • Spokane Valley, WA
  • Tacoma, WA
  • Tukwila, WA
  • Vancouver, WA
  • Wauwatosa, WI
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