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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 about 115 Nordstrom full-line stores and about 240 off-price outlet stores (Nordstrom Rack) in about 40 states and online. It also operates six full-line and six Rack stores in Canada, three Jeffrey luxury boutiques, six Trunk Club personal clothing service clubhouses, three Nordstrom Local hubs, two "Last Chance" clearance stores, and online private sale site HauteLook. 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 30% of the retailer's stock, closely supervise the chain.

Operations

Nordstrom's 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, Nordstrom Local, Last Chance, and Canadian operations.

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

Nordstrom's Full Price operations (Nordstrom US full-line stores, Nordstrom.com, Canadian operations, Trunk Club, Jeffrey, and Nordstrom Local) generate over two-thirds of the retail sales, while Off-Price operations (Nordstrom US Rack stores, Nordstromrack.com/HauteLook, and Last Chance clearance stores) accounts for the remaining sales.

By product, the company generates nearly a third of its net sales from women's apparel, while shoe sales make up nearly a quarter. The rest of its net sales came from men's apparel (more than 15%), women's accessories (more than 10%), cosmetics (some 10%), and kid's apparel and other items (some 5%, combined).

Geographic Reach

Based in Seattle, Washington, Nordstrom has more than 365 full-line and Nordstrom Rack stores in 40 US states, as well as about a dozen Nordstrom full-line stores and Rack stores in Canada. California is the retailer's largest market with nearly 90 full-line and Rack stores. Other major markets for the chain include Florida, Illinois, and Texas.

The company also operates six distribution centers in California, Florida, Iowa, Maryland, and Oregon; three fulfillment centers in California, Iowa, and Pennsylvania; and four office facilities in California, Colorado, Illinois, and New York.

Sales and Marketing

Nordstrom processes and ships orders directly to customers through fulfillment centers, while its distribution centers process and ship merchandise to its stores and other facilities.

The company promotes its products through online marketing, magazines, store events, and other media. Nordstrom's advertising expense totaled $246 million, $261 million, and $241 million for the years 2018, 2017, and 2016, respectively.

Financial Performance

Navigating a challenging retail environment for department stores, Nordstrom has seen steady revenue growth in recent years. Its annual revenues have risen close to 20% since 2016.

Revenue increased to $15.8 billion in 2018, an approximately 2.5% increase from the year prior. The increase was driven by new store openings, higher digital sales, and an increase in credit card revenues. 

Net income was $564 million in fiscal year 2018, an increase from $437 million in fiscal year 2017. Selling, general and administrative expenses grew 4% in fiscal 2018 to $4.8 billion.  

Cash provided by operating activities was $1.2 billion in fiscal 2018, while investing activities used $653 million. Financing activities used another $867 million.

Strategy

While many department stores across the US have failed to keep up as consumers moved toward shopping online and smaller, brand-specific stores, Nordstrom is proving more adaptable than most.

The company has made many moves to keep up with and ahead of modern consumers who demand omnichannel conveniences and new ways of doing business. Nordstrom is experimenting with new store formats and changing what it means to be a retail store. For example, Nordstrom's new smaller Nordstrom Local stores located in urban hubs such as Los Angeles and New York City do not carry retail merchandise. Instead, the locations offer customer services such as alterations, styling guidance, returns, and assistance with online shopping.

Nordstrom has expanded its generous return policy to welcome shoppers through its doors. In 2019 the company began accepting merchandise returns from rival stores such as Macy's and Kohl's at its small-format Nordstrom Local locations, as a way to drive traffic into stores and offer customers an additional convenience. 

It has also found new ways to leverage online, such as curbside pickup for online purchases at local stores and same-day shipping for online orders that pull items from local stores. E-commerce has grown to approximately a third of the company's sales. 

Nordstrom is looking north for expansion. In 2018 it opened six new Nordstrom Rack discount stores in Canada.

 

Nordstrom, Inc.

1617 6TH AVE
Seattle, WA 98101-1707
Phone: 1 (206) 628-2111

Stats

Employer Type: Publicly Owned
Stock Symbol: JWN
Stock Exchange: , NYSE
Co-President: Blake W. Nordstrom
Co-President: Peter E. Nordstrom
Co-President: Erik B. Nordstrom
Employees (This Location): 120
Employees (All Locations): 71,000

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
Fontana, CA
Fremont, CA
Fresno, CA
Fullerton, 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
Pasadena, 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
Winter Park, 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
New Orleans, LA
Boston, MA
Braintree, MA
Burlington, MA
Natick, MA
Peabody, MA
Westwood, MA
Annapolis, 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
Manchester, 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
Greenville, 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
Fairfax, VA
Mc Lean, VA
Norfolk, VA
Richmond, VA
Sterling, VA
Woodbridge, VA
Albany, WA
Algona, WA
Bellevue, WA
Lynnwood, WA
Seattle, WA
Spokane, WA
Spokane Valley, WA
Tacoma, WA
Tukwila, WA
Wauwatosa, WI
Calgary, Canada
Etobicoke, Canada
North York, Canada
Ottawa, Canada
Toronto, Canada
Vancouver, Canada