About Nordstrom

Nordstrom, Inc. operates as a fashion retailer that offers an extensive selection of high-quality brand-name and private label merchandise for women, men, young adults and children, with a focus on apparel, shoes, beauty, accessories and home goods. The company offers brand-name and private label merchandise across its digital and physical assets in both its Nordstrom and Nordstrom Rack banners. The company’s facilities and stores are located in 40 states in the U.S. and three provinces in Canada. Segments The company’s Retail reportable segment aggregates its two operating segments, Nordstrom and Nordstrom Rack. Nordstrom Nordstrom is a leading destination for a breadth of products across brands, styles and prices complemented by unmatched services and experiences. As of January 28, 2023, Nordstrom consisted of Nordstrom.com, Nordstrom U.S. stores, Canada, which includes Nordstrom.ca, Nordstrom Canadian stores and Nordstrom Rack Canadian stores, Nordstrom Local, ASOS | Nordstrom and, prior to October 2022, TrunkClub.com. Nordstrom Rack Nordstrom Rack is a premier off-price destination with an industry-leading off-price digital presence, offering great brands. Nordstrom Rack consists of NordstromRack.com, Nordstrom Rack U.S. stores, Last Chance clearance stores and, prior to the first quarter of 2021, HauteLook.com. Nordstrom Rack purchases merchandise primarily from the same vendors carried at Nordstrom and also serves as an outlet for clearance merchandise from the Nordstrom banner. The company continues to expand its offerings of the most coveted brands it carries, as well as source from new vendors, to ensure it has the selection its customers want. NordstromRack.com offers both a selection of Nordstrom Rack merchandise and limited-time flash sale events on fashion and lifestyle brands, which formerly existed on HauteLook.com prior to the first quarter of 2021 when it was consolidated into NordstromRack.com. Dispositions In March 2023, Nordstrom Canada commenced a wind-down of its business operations. Strategy The company’s Closer to You strategy leverages a strong store fleet and links its omni-channel capabilities at the local market level, positioning it physically closer to the customer and allowing it to drive customer engagement through better service and greater access to product. There are two elements to this strategy. First, the company intends to provide customers a greater selection of merchandise available for next-day pickup or delivery without increasing inventory levels. Second, the company is increasing engagement with customers by offering express services, such as order pickup, returns and alterations at additional convenient locations. In 2022, the company continued to scale its market strategy by expanding next-day order pickup capabilities to additional Rack stores in its top 20 markets. Products The company has arrangements with agents and contract manufacturers to produce its private label merchandise. Loyalty Program The Nordy Club is the company’s customer loyalty program that incorporates a traditional point and benefit system, while providing customers exclusive access to products and events, enhanced services, personalized experiences and more convenient ways to shop. Customers accumulate points based on their level of spending and type of participation. Upon reaching certain point thresholds, customers receive Nordstrom Notes, which can be redeemed for goods or services across Nordstrom and Nordstrom Rack. The Nordy Club benefits vary based on the level of customer spend, and include bonus points days and shopping and fashion events. The company offers customers access to a variety of payment products and services, including a selection of Nordstrom-branded Visa credit cards in the U.S. and Canada, as well as a Nordstrom-branded private label credit card for Nordstrom purchases. When customers use a Nordstrom-branded credit or debit card, they also participate in The Nordy Club and receive additional benefits, which can vary depending on the level of spend, including early access to the Anniversary Sale, enhanced alteration and stylist benefits and incremental accumulation of points toward Nordstrom Notes. Supply Chain Network The company’s supply chain network consists of three fulfillment centers that primarily process and ship orders to its customers; six distribution centers that primarily process and ship merchandise to its stores and other facilities; and one omni-channel center that both fulfills customer orders and ships merchandise to its stores. Nordstrom online purchases are primarily shipped to its customers from its fulfillment centers but may also be shipped from its Nordstrom stores, distribution centers or omni-channel centers. Nordstrom in-store purchases are primarily fulfilled from that store’s inventory, but when inventory is unavailable at that store, it may also be shipped to the company’s customers from its fulfillment centers, distribution centers, omni-channel centers or from other Nordstrom stores. Nordstrom Rack online purchases are shipped to the company’s customers from its fulfillment centers and distribution centers. Both Nordstrom and Nordstrom Rack selectively use vendor dropship to supplement online offerings, which are then shipped directly from the vendor to the end customer. The company’s smaller Local omni-channel Hub in Torrance, California ceased operations in the third quarter of 2022 as the company scaled its Riverside location to support demand in that region. Trademarks The company’s most notable trademarks include Nordstrom, Nordstrom Rack, Zella, BP, and Treasure & Bond. Each of the company’s trademarks is renewable indefinitely, provided it is still used in commerce at the time of the renewal. Seasonality The company’s business, like that of other retailers, is subject to seasonal fluctuations and cyclical trends in consumer spending. The company’s sales are typically higher in its second quarter (year ended January 2023), which usually includes most of its Anniversary Sale, and in the fourth quarter due to the holidays. Approximately one week of the company’s Anniversary Sale shifted from the third quarter in 2021 to the second quarter in 2022. The company’s merchandise purchases and receipts increase prior to the Anniversary Sale and in the fall as it prepares for the holiday shopping season (typically from November through December). Consistent with the company’s seasonal fluctuations, its working capital requirements have historically increased during the months leading up to the Anniversary Sale and the holidays as it purchases inventory in anticipation of increased sales. History Nordstrom, Inc. was founded in 1901. The company was incorporated in 1946.