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Nordstrom

Coordinates: 47°36′45″N 122°20′11″W / 47.61237°N 122.3365°W / 47.61237; -122.3365
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This article is about the fashion retailer. For other uses, see Nordstrom (disambiguation).

47°36′45″N 122°20′11″W / 47.61237°N 122.3365°W / 47.61237; -122.3365

Nordstrom, Inc.
Company typePublic
NYSE: JWN
S&P 500 Component
IndustryRetail
Founded1901; 123 years ago (1901)
FounderJohn W. Nordstrom
Carl F. Wallin
Headquarters
Seattle, Washington
,
United States
Number of locations
Nordstrom: 123
Nordstrom Rack: 215
Trunk Club: 5
Jeffrey: 2
Clearance store: 2 (2016)[1]
Key people
Enrique Hernandez, Jr., Chairman
Blake Nordstrom, President
Pete Nordstrom, President of Merchandising
Erik Nordstrom, President of Nordstrom Direct
Jamie Nordstrom, President of Stores
Mike Koppel, Chief Financial Officer
Karen Mckibbin, President Nordstrom Rack
ProductsClothing, footwear, jewelry, beauty, restaurant, espresso bar, home furnishings and design, and wedding
RevenueIncrease US$ 14.437 billion (2015)[2]
Decrease US$ 1.101 billion (2015)[2]
Decrease US$ 600 million (2015)[2]
Total assets
  • Decrease US$ 7.698 billion (2015)[3]
  • Increase US$ 9.245 billion (2014)[4]
Total equityDecrease US$ 871 million (2015)[5]
Number of employees
72,500 (2015)[6]
SubsidiariesHauteLook
Nordstrom Rack
Trunk Club
Websitenordstrom.com

Nordstrom, Inc. (/ˈnɔːrdstrəm/) is an American chain of luxury department stores headquartered in Seattle, Washington. Founded in 1901 by John W. Nordstrom and Carl F. Wallin, the company began as a shoe retailer and expanded its inventory to include clothing, accessories, handbags, jewelry, cosmetics, and fragrances. Select Nordstrom stores also include wedding and home furnishings departments.

The company has 349 stores operating in 40 states, Puerto Rico and Canada, a number which includes 123 full-line stores and 215 Nordstrom Rack stores, five Trunk Club clubhouses, two Jeffrey boutiques and two clearance stores. Nordstrom also serves customers through nordstrom.com, nordstromrack.com, and its online private sale site, HauteLook.

Nordstrom, Inc.'s common stock is publicly traded on the NYSE under the symbol JWN.

History

Further information: Timeline of Nordstrom

Early history

Nordstrom's headquarters and flagship store (in former Frederick & Nelson flagship) in downtown Seattle.

In 1887, at the age of 16, like many other Swedes in the late 19th century, John W. Nordstrom emigrated to the United States in search of opportunity. He was born in the village of Alvik, close to the city of Luleå in Northern Sweden. His name at birth was "Johan Nordström" which he later anglicized to John Nordstrom. After landing in New York, he first began working in Michigan. As he moved across the country, he worked a series of menial jobs. He was able to save enough money to purchase a 20-acre (81,000 m2) potato farm in Arlington, Washington, near Seattle. In 1897, he joined the Klondike Gold Rush in Canada's Yukon Territory, leaving Seattle. After two years of prospecting, he finally struck gold, but sold his disputed claim for $13,000.[1] Returning to Seattle with his newfound wealth, he married Hilda Carlson and looked for a business venture, finally settling on a shoe store that opened in 1901, called Wallin & Nordstrom. Carl F. Wallin, the co-founder of the store, was the owner of the adjacent shoe repair shop. John and Hilda had five children, three of whom would follow him into the family business, Everett W.(1903), Elmer J. (1904) and Lloyd N. Nordstrom. By the time Wallin & Nordstrom opened their second store in Seattle in 1923, Elmer, a recent graduate of the University of Washington, had enough experience to be placed in charge of its opening.[1]

The exterior of a typical Nordstrom department store. This one is the now closed location at The Florida Mall in Orlando, Florida.

In 1928, John W. Nordstrom retired and sold his shares to two of his sons, Everett and Elmer. In 1929, Wallin also retired and sold his shares to them. The 1930 grand opening of the remodeled Second Avenue store marked the change of name to Nordstrom. Lloyd Nordstrom subsequently joined the company in 1933, and the three brothers ran the business together for almost forty years.[7]

By 1958, Nordstrom had expanded to eight stores in two states but still sold only shoes. Their expansion was based on customer service, deep product offerings and full size ranges. Apparel came with its purchase of Best Apparel of Seattle in 1963. The company's name was changed to Nordstrom Absolute Best in 1969.[1]

By 1968, the second generation debated selling the company as Everett neared retirement. Instead, they were convinced by the third-generation Nordstroms—Bruce A. (Everett's son), James F. and John N. (Elmer's two sons), together with John A. (Jack) MacMillan (married to Lloyd's daughter) -- to take the company public instead, and allow the cousins to take over the business. In 1971, the company was taken public on NASDAQ under the ticker NOBE (Nordstrom Best). In 1973, "Best" was dropped from the company's name, and the store assumed its current name of Nordstrom.[8] It was moved to the New York Stock Exchange in 1999 under the ticker symbol JWN after John W. Nordstrom, its founder.[1]

1970s–90s

File:OldNordstrom.PNG
The previous Nordstrom logo, in use from 1973 through 1991.

By 1975, Nordstrom expanded into Alaska (the only time by acquisition) by purchasing Northern Commercial Company and opened its first Nordstrom Rack clearance store in Seattle. A strong northwest regional retailer with sales already approaching $250 million making it the third-largest specialty retailer in the United States, the company opened its first Southern California store at South Coast Plaza in Costa Mesa in 1978.[9] By the early 1990s, it had opened 26 stores plus Racks in California. Subsequent expansion relied on creating a strongly decentralized regional structure, beginning with the Northeast in the Tysons Corner Center in Virginia (1988), the Midwest in the Oakbrook Center in Illinois (1991), the Southeast in Atlanta (1998), and the Southwest in Dallas (1996). In a new region, the initial store was used as a base for training and recruitment for subsequent expansion, and was usually backed by its own distribution center. From 1978 to 1995, Nordstrom opened a total of 46 full-line department stores.[10]

In 1976, Nordstrom opened a series of stores called Place Two to sell a more limited selection of apparel in smaller markets. By 1983, there were ten Place Two stores, but the cost of upgrading the smaller stores, especially from a systems perspective, outweighed the benefit, and the division was discontinued.[11] The company also expanded into direct sales in 1993, beginning with a catalog division[12] led by John N.'s son Dan that was followed by an e-commerce business. Nordstrom.com's fulfillment and contact centers are located in Cedar Rapids, Iowa; and Seattle, Washington. Currently, it has distribution centers in Ontario, California; Newark, California; Portland, Oregon; Dubuque, Iowa; Upper Marlboro, Maryland; and Gainesville, Florida.

Nordstrom FSB, a wholly owned subsidiary of Nordstrom, Inc., is a federally chartered savings bank doing business as Nordstrom Bank. It was formed in 1991 in Scottsdale, Arizona, with its customer contact center in Centennial, Colorado. Nordstrom FSB was formerly known as Nordstrom National Credit Bank and changed its name to Nordstrom FSB in March 2000. The bank offers various banking and credit products, such as Nordstrom Signature VISA, Nordstrom retail credit and debit cards, interest-bearing checking accounts, check cards, and certificates of deposits. It offers Nordstrom customers cards under Nordstrom Rewards – its customer loyalty program – where customers earn points when making purchases with the card at Nordstrom and other retailers. Other rewards include Nordstrom Notes which are redeemed or used like cash in stores for new purchases and the Nordstrom Signature VISA card also has an optional travel/leisure rewards feature. The Nordstrom Rewards program features 4 levels of status depending on annual spending and offers various promotional times throughout the year to earn double, triple and even ten-times points.[13][14]

Beginning in 1995, the fourth generation of brothers and cousins served as co-presidents for a time. After John Whitacre served as the first non-Nordstrom CEO in 1997,[15] in 2001 the family reasserted its control, with the sons of Bruce A. (Blake, Erik and Peter) assuming senior roles in the company which they continue to hold.[16]

In 1998, Nordstrom replaced its downtown Seattle store with a new flagship location in the former Frederick & Nelson building across the street. At 383,000 square feet (35,600 m2), the downtown Seattle location is the chain's largest store. By contrast, the smallest Nordstrom store, as of September 2008, opened in 1980 in Salem, Oregon, with a total area of just under 72,000 square feet (6,700 m2).

2000–2015

Nordstrom Rack, the company's off-price clearance store

Nordstrom sold its stand-alone boutique chain Façonnable in 2007, though it still offers that label in its lineup.

In February 2011, Nordstrom announced the acquisition of HauteLook, an LA-based online retailer that offers flash sales on designer goods. The deal included Nordstrom paying $180 million in stock and a three-year "earn-out" payment based on HauteLook's financial performance.[17]

A Nordstrom Rack store in Hillsboro, Oregon

On May 26, 2011, Nordstrom announced that they would be closing the downtown Indianapolis, Indiana Circle Center Mall location due to declining business at the site. The remaining location on the north side of the city at the Fashion Mall at Keystone as well as the future Nordstrom Rack store in the Rivers Edge Shopping Center, also on the north side, remained as the only two locations in the state. Erik Nordstrom, president of stores at Nordstrom stated, "We've enjoyed serving our customers in downtown Indianapolis, but unfortunately our business has declined over the long term for some time and despite our efforts to turn things around we don't see the outlook significantly changing."[18]

In August 2011, Nordstrom opened the store Treasure & Bond in SoHo, New York. Intended to test the waters of the tumultuous high-end department store scene in New York, all profits of Treasure & Bond are donated to charity. The customer base of the smaller store is thought to be the younger, more free-willed sister of the typical Nordstrom customer.[19]

Nordstrom announced plans to open a Nordstrom Rack in Milwaukee in 2014.[20] In late November 2012, Nordstrom announced that they would also be opening a full-line Nordstrom Department Store in 2015 in Milwaukee at Mayfair Mall, a half-mile away from the Nordstrom Rack location. Milwaukee was the largest metropolitan area in the country that did not have a Nordstrom until 2015. Such unmet demand was highlighted in Nordstrom's decision to open in the Milwaukee area.[21]

On January 4, 2013, Nordstrom confirmed a new location in the Minneapolis-Saint Paul metropolitan region. To be located at the Ridgedale Center, it would be the second in the Minneapolis-Saint Paul area. Following the success of its Mall of America opening in 1991, Nordstrom has sought to expand in the Twin Cities market.[22] Plans were originally made in 2007 to open at Ridgedale Center in 2011, only to be canceled in 2009.[23] It opened in September 2015.

Nordstrom opened its first Rack location in Philadelphia in the fall of 2014.[24] In the fall of 2015, Nordstrom opened their first Nordstrom Rack store in Delaware.[25] The company plans to open its first namesake store in New York City in 2019.[1][26]

2016–present

In 2016, Nordstrom entered into a partnership with Tesla Motors under which the automaker opened retail galleries inside the Nordstrom locations in The Grove, Los Angeles, in SouthPark Mall in Charlotte, North Carolina and in Somerset Collection in Troy, Michigan.[27][28]

In 2016, Nordstrom began selling products from J. Crew, Olivia Palermo + Chelsea28, Hermès, Adore Me, and Eloquii.[29][30][31][32][33] In 2017, Nordstrom announced they would be expanding their natural beauty-focused stations. Stations would include products from Origins, Tata Harper, and Bare Minerals.[34]

On February 2, 2017, Bloomberg News reported that Nordstrom would cease to carry Ivanka Trump's branded fashion line, citing weak sales. The retailer cuts 10 percent of its most poorly performing brands each year. Nordstrom's action came after a boycott campaign against retailers carrying products having Trump family labels.[35][36] In a move that raised continued questions about conflicts of interest in the Trump Administration, President Trump responded with a tweet directed at Nordstrom, condemning the brand for its treatment of his daughter. The company's stock dropped by 0.65% in the aftermath of the tweet before ending the day with a gain of more than 4%. Fortune declared this quick recovery to have broken Trump's market-moving "tweet curse".[37][38][39][40]

Expansion into Canada

The Calgary store opened in Chinook Centre on September 19, 2014,[41] the Ottawa store opened in Rideau Centre on March 6, 2015,[42] the Vancouver Pacific Centre store opened on September 18, 2015,[43] and the Toronto Eaton Centre in 2016. Two additional stores are projected to open in Toronto; Yorkdale Shopping Centre on October 21, 2016 and Sherway Gardens in the fall of 2017.[44][45][46] The first Nordstrom Rack is to open in Toronto in 2018.[47]

Puerto Rico

Nordstrom opened a 138,000-square-foot, two-level, full-line store March 2015 in The Mall of San Juan in San Juan, Puerto Rico.[48]

Sales events

Map of Nordstrom locations in the United States

Nordstrom holds six designated sale events each year. Two of these are Half-Yearly sales, which take place semi-annually in May and late December, as well as three additional seasonal sales.

Nordstrom's largest sale event is the Nordstrom Anniversary Sale, which is held each July.[49] Limited amounts of merchandise set to be released for the following fall are sent to Nordstrom stores early, where they are sold at a large discount. For ten days prior to Anniversary Sale, Nordstrom rewards members are able to make appointments with sales associates to shop the sale early through the store's Early Access event.[50]

Recognition

Nordstrom was listed at No. 72 in Fortune magazine's 100 Best Companies to Work For 2009.[51] Nordstrom is a Hall of Fame member of Fortune magazine's "100 Best Companies to Work For" list.[52] Nordstrom was No. 36 on the same list in 2008, No. 24 in 2007, No. 46 in 2006 and No. 88 in 2005.[53] In 2010, it ranked number 53, and dropped to 61 in 2012.[54] Nordstrom was ranked No. 286, previously 293, on the Fortune 500 for 2007 and as of 2015 ranked 224.[55][56]

in December 2013, Women's Wear Daily (WWD) reported Nordstrom as the top fashion retailer.[57]

References

  1. ^ a b c d e f "Nordstrom History". shop.nordstrom.com. Retrieved November 26, 2016.
  2. ^ a b c Nordstrom (JWN) annual SEC income statement filing via Wikinvest
  3. ^ "Nordstrom Inc. 2013 Q3 Quarterly Report Form (10-Q)" (XBRL). United States Securities and Exchange Commission. December 2, 2013.
  4. ^ "Nordstrom Inc. 2012 Annual Report Form (10-K)" (XBRL). United States Securities and Exchange Commission. March 18, 2013.
  5. ^ Nordstrom (JWN) annual SEC balance sheet filing via Wikinvest
  6. ^ "Nordstrom, Inc. | Company Profile". Hoover's. Retrieved February 9, 2017.
  7. ^ McNerthney, Casey (July 8, 2011). "Seattle History: Nordstrom through the years". Seattle PI. Retrieved September 28, 2016.
  8. ^ Nordstrom: Free Shipping. Free Returns. All the Time. Shop.nordstrom.com. Retrieved on July 26, 2013.
  9. ^ Berg, Tom; Mangan, Timothy; Liddane, Lisa (February 21, 2015). "Maker of a Metropolis". The Orange County Register. p. News 6.
  10. ^ The Nordstrom Way (1996), 133
  11. ^ Dow Jones News Services. "Nordstrom-Place Two -2-: To Close 3 Stores, Convert 1." April 26, 1994.
  12. ^ The Nordstrom Way, 213
  13. ^ Nordstrom fsb: Private Company Information – Businessweek. Investing.businessweek.com. Retrieved on July 26, 2013.
  14. ^ Nordstrom Card – Compare & Apply. Shop.nordstrom.com. Retrieved on July 26, 2013.
  15. ^ Frey, Christine (November 20, 2002). "John Whitacre, former Nordstrom CEO, was a team player". Seattle Post-Intelligencer. Retrieved September 24, 2013.
  16. ^ Kaufman, Leslie (September 1, 2000). "2 at Top of Nordstrom Quit; Family Members Take Over". The New York Times.
  17. ^ Nordstrom to Acquire Online Retailer HauteLook, New York Times Dealbook, February 17, 2011.
  18. ^ Nordstrom.com – Press Room – Press Release. Phx.corporate-ir.net. Retrieved on July 26, 2013.
  19. ^ "Nordstrom in New York to Use an Alias". The New York Times. August 16, 2011.
  20. ^ Nordstrom Rack coming to Wauwatosa in 2014 – Milwaukee – The Business Journal. Bizjournals.com. Retrieved on July 26, 2013.
  21. ^ Marketplace: Nordstrom opening at Mayfair. Onmilwaukee.com (November 29, 2012). Retrieved on July 26, 2013.
  22. ^ Nordstrom to open in Ridgedale. StarTribune.com (January 4, 2013). Retrieved on July 26, 2013.
  23. ^ Blaming Ridgedale's owner, Nordstrom pulls out of mall. StarTribune.com (February 24, 2009). Retrieved on July 26, 2013.
  24. ^ "Nordstrom Rack To Open On Chestnut Street In Philadelphia – Press Room – Nordstrom.com". Press.nordstrom.com. October 1, 2013. Retrieved August 18, 2014.
  25. ^ "Nordstrom Rack to Open First Store in Delaware – Press Room – Nordstrom.com". Press.nordstrom.com. February 5, 2014. Retrieved August 18, 2014.
  26. ^ Weiss, Lois. "Nordstrom buys land for tower in Midtown". New York Post.
  27. ^ Lambert, Fred (November 25, 2016). "Tesla expands partnership with Nordstrom, adds another retail location inside the upscale fashion store". electrek.co. Retrieved December 1, 2016.
  28. ^ Korosec, Kirsten (December 2, 2016). "Tesla Just Set Up a Showroom In a Major Battleground State". Fortune. Retrieved December 2, 2016.
  29. ^ "J. Crew Will Sell Through Nordstrom as Brand Seeks a Revival". Bloomberg.com. August 29, 2016. Retrieved February 14, 2017.
  30. ^ "Olivia Palermo's New Line With Nordstrom Is Launching Just in Time for Fashion Week". Vogue. Retrieved February 14, 2017.
  31. ^ "Nordstrom says: Go ahead and touch the Hermès | Provided By Advertising Publications". The Seattle Times. October 18, 2016. Retrieved February 14, 2017.
  32. ^ Borchardt, Debra (June 15, 2016). "Online Retailer Adore Me to Sell in Select Nordstrom Stores". WWD. Retrieved February 14, 2017.
  33. ^ "eloquii-nordstrom". fashionista.com. Retrieved February 14, 2017. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
  34. ^ "Nordstrom Stores Are Expanding to Embrace Natural Beauty Products". Retrieved February 14, 2017.
  35. ^ Rupp, Lindsey (February 2, 2017). "Nordstrom is cutting Ivanka Trump's brand due to poor sales". Bloomberg News. Retrieved February 8, 2017.
  36. ^ Abrams, Rachel (February 8, 2017). "Trump Assails Nordstrom for "Unfairly" Dropping His Daughter's Line". The New York Times. Retrieved February 8, 2017.
  37. ^ "Donald Trump targets Nordstrom in tweet about Ivanka Trump". Hollywood Reporter. February 8, 2017. Retrieved February 8, 2017.
  38. ^ Hiltzik, Michael (February 8, 2017). "Nordstrom stock shrugs off Trump's tweet attack". Los Angeles Times. Retrieved February 8, 2017.
  39. ^ Wieczner, Jen (February 8, 2017). "Nordstrom Stock Just Broke The Donald Trump Tweet Curse". Fortune. Retrieved February 8, 2017.
  40. ^ Kratofil, Colleen (February 9, 2017). "Celebrities Go On Nordstrom Shopping Spree After Donald Trump Slams The Brand On Twitter". People. Retrieved February 9, 2017.
  41. ^ Shoppers line up for hours on opening day for Canada's first Nordstrom location Calgary Herald (September 14, 2014). Retrieved on September 21, 2014.
  42. ^ Nordstrom Opens Ottawa Store Ottawa Sun (March 6, 2015) Retrieved on 2015-09-251
  43. ^ Nordstrom Opening Brings Zing Downtown Vancouver Vancouver Sun (September 19, 2015). Retrieved on September 25, 2015.
  44. ^ Nordstrom Canada: Stores to open in Calgary, Ottawa, Vancouver, Toronto Financial Post (September 13, 2012). Retrieved on July 26, 2013.
  45. ^ Nordstrom adds second Toronto store to Canadian expansion Reuters (April 8, 2013). Retrieved on July 26, 2013.
  46. ^ Nordstrom to replace Sears at Eaton Centre Toronto Star (January 15, 2014). Retrieved on January 15, 2014.
  47. ^ "Nordstrom Rack launches first Canadian Location at One Bloor" (Press release). First Gulf. February 23, 2016.
  48. ^ "Luxury, Island Style: Mall Of San Juan Opens In Puerto Rico". NBC News. March 26, 2015. Retrieved November 10, 2015.
  49. ^ Frequently Asked Questions. Shop.nordstrom.com. Retrieved on July 26, 2013.
  50. ^ "Early Access Shopping".
  51. ^ 100 Best Companies to Work For 2009, CNNMoney.com, Last accessed January 22, 2009
  52. ^ Nordstrom Careers, Nordstrom. Last accessed March 2, 2007.
  53. ^ 100 Best Companies to Work For 2006, CNNMoney.com, Last accessed February 15, 2007.
  54. ^ "100 Best Companies to Work For 2012: Full list". CNN.
  55. ^ Fortune 500 2007, CNNMoney.com, Last accessed July 24, 2007.
  56. ^ "Nordstrom". Fortune. Retrieved September 28, 2016.
  57. ^ Karr, Arnold J. (December 27, 2013). "Study Finds Nordstrom Again Top Fashion Retailer". WWD. Retrieved December 27, 2013.
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