NORDSTROM  REPORT:  2009    

ABOUT:  Nordstrom  is  the  name  of  the  company.  The  corporate  office  is  located  in  

Seattle,  Washington.  Nordstrom  is  one  of  the  nation’s  largest  upscale  apparel  and  

shoe  retailers  (Biesada  2009).  Nordstrom  sells  clothing,  footwear,  and  accessories.  

There  are  one  hundred  and  ten  Nordstrom  stores,  and  sixty  outlet  stores,  such  as  

Nordstrom  Rack.  Nordstrom  is  located  in  more  than  twenty-­‐five  states.  Nordstrom  

also  vends  goods  online  and  in  catalogs.  Nordstrom  is  also  notoriously  known  for  

it’s  top  customer  service,  such  as  an  easy  return  policy  and  nice  gestures  such  as  

thank-­‐you  cards  from  the  employees.  (Biesada  2009).  The  members  of  the  

Nordstrom  family  oversee  the  company  and  even  own  more  than  fifteen  percent  of  

Nordstrom’s  stock.  The  fiscal  year  of  annual  report  is  2008.    

 

2008  Sales   2007  Sales   %Sales  

Change  

2008  Net  

Income  

2007  Net  

Income  

%  

Change  

Net  

Income  

$8,573,000,000   $8,828,000,000   -­‐3%   $4,010,000,000   7,150,000,000   -­‐44%  

 

REPORT:  Nordstrom  was  ranked  as  number  forty-­‐six  on  the  “Top  100  Retailers”  

article.  The  top  retailer,  Wal-­‐Mart,  had  their  2008  sales  as  $405,607,000,000.00.  

Nordstrom’s  2008  sales,  as  shown  in  the  chart  above,  are  $8,573,000,000.00,  

meaning  that  Nordstrom  is  $397,034,000,000.00  dollars  below  Wal-­‐Mart,  the  top  

retailer.  In  2007,  Nordstrom  was  ranked  as  number  thirty-­‐nine.  This  means  that  

Nordstrom’s  ranking  has  decreased  seven  spots  on  the  Top  100  list.  Nordstrom  has  

been  affected  by  the  economy  as  shown  by  their  decrease  in  sales  from  last  year  to  

this  year.  (Shultz  2009).    

According  to  Nordstrom’s  website,  their  volume  amounts  to  $3,502,806.  The  

sales  release  for  September  will  not  be  issued  to  the  public  until  October  8,  thus  the  

sales  report  for  August  is  used.  Nordstrom  compared  the  four-­‐week  period  ended  

on  August  29,  2009  with  the  four-­‐week  period  ended  on  August  30,  2008,  and  found  

that  in  their  same-­‐store  sales,  there  was  a  7.6%  decrease.  The  preliminary  total  

retail  sales  of  $541,000,000  for  August  2009  compared  to  $558,000,000  for  the  

same  period  in  fiscal  2008,  showed  a  decrease  of  3.0  percent.  Nordstrom  also  

conveyed  that  their  year-­‐to-­‐date  same-­‐store  sales  decreased  10.9  percent  compared  

with  the  same  period  in  fiscal  2008.  Its  preliminary  year-­‐to-­‐date  total  retail  sales  of  

$4,390,000,000  decreased  by  7.0  percent  compared  with  total  retail  sales  of  

$4,720,000,000  for  the  same  period  in  fiscal  2008.  (Nordstrom  Inc.  2009).  This  

means  that,  like  many  other  retailers  in  the  industry,  Nordstrom  is  suffering.  

Nordstrom’s  decrease  in  sales  is  due  to  the  effects  of  reduced  consumer  

spending.  This  was  especially  noticeable  during  the  second  half  of  2008.  As  a  result,  

Nordstrom  is  cutting  back  by  reducing  its  expenses  in  2009  by  downgrading  in  the  

number  of  stores  in  remodels  and  postponing  or  cancelling  plans  for  several  new  

Nordstrom  department  stores.  However,  there  are  plans  to  open  three  new  

Nordstrom  stores,  as  well  as  ten  Nordstrom  Rack  stores  during  the  year  of  2009.  

(Biesada  2009).  Before  this  plan,  there  was  another  plan  to  open  thirty  new  or  

relocated  Nordstrom  department  stores  and  to  remodel  thirty  others  each  year  over  

the  course  of  five  years.  However,  the  plan  was  cancelled  because  of  the  downfall  

economy.  Currently,  there  are  one-­‐hundred-­‐and-­‐nine  full-­‐line  stores  and  sixty-­‐two  

Nordstrom  Rack  stores  divided  into  twenty-­‐eight  different  states  all  areas  of  the  

United  States.  Though  hesitant,  Nordstrom  hopes  to  open  nearly  fifty  stores  in  the  

next  ten  years,  and  has  already  made  their  plan  to  open  twenty-­‐six  new  stores  in  

2012  public.  Some  of  the  new  stores  will  be  located  in  major  American  cities,  as  well  

as  in  San  Juan,  Puerto  Rico.  (Biesada  2009).    

Nordstrom  covets  multiple  strengths.  Their  top  strength  as  a  company  is  that  

their  customer  service  is  the  best.  Nordstrom  believes  that  everything  is  for  the  

customer  and  the  customer  is  always  right.  Thus,  a  customer  can  return  anything  

previously  purchased  at  Nordstrom  from  one  hour  later  to  many  years  later,  

without  a  receipt,  and  without  question  from  Nordstrom’s  employees.  Customers  

appreciate  Nordstrom’s  return  policy,  and  they  take  it  into  consideration  when  they  

shop  at  Nordstrom.  (Biesada  2009).  Another  strength  is  that  the  company  reviews  

its  plans  constantly  to  make  sure  that  the  plans  will  help  the  company  no  matter  

what.  As  seen  in  the  previous  question,  Nordstrom  had  a  plan,  but  with  careful  

deliberation,  it  realized  that  a  different  plan  might  be  more  sufficient  for  the  

company.  Thus,  once  Nordstrom  makes  its  decisions,  it  reviews  the  decisions  made,  

and  then  decides  if  it  should  be  implemented,  or  replaced  with  an  even  better  

strategy.  As  stated  in  the  above  answer,  Nordstrom  hopes  to  open  fifty  stores  in  the  

next  ten  years,  twenty-­‐six  stores  in  the  year  2012,  and  three  new  stores  and  ten  

Nordstrom  Rack  stores  during  2009.  Nordstrom  sees  potential  for  growth  in  all  

areas  of  the  country,  but  mostly  in  major  cities,  such  as  Phoenix,  Nashville,  and  St.  

Louis.  To  develop  business,  Nordstrom  has  a  strategy  comprising  of  four  key  

aspects.  The  first  point  is  to  improve  the  customer  service  experience.  The  second  

aspect  is  to  continue  to  develop  its  merchandise  so  that  it  is  constantly  meeting  the  

challenging  needs  of  the  customers.  The  third  feature  is  to  deepen  the  personal  

bonds  with  the  customers  through  its  multi-­‐channel  shopping  experience  and  

through  Nordstrom’s  Fashion  Rewards  program.  Finally,  the  last  point  in  the  

strategy  is  to  manage  the  business  effectively  through  an  unpredictable  

environment  and  to  emerge  stronger.  (Nordstrom  Inc.  2009).    

The  first  article,  from  Women’s  Wear  Daily,  discusses  how  Jimmy  Choo  shoes  will  

be  available  at  Nordstrom,  starting  in  January  2010.  There  will  be  28  different  styles  

offered.  This  could  potentially  improve  Nordstrom’s  business.  Jimmy  Choo  is  a  well-­‐

respected  designer,  who  “has  been  upping  the  fashion  quotient  over  the  past  few  

years”.  (Conti  2009).  Tamara  Mellon,  the  CEO  and  founder  of  Jimmy  Choo,  believes  

the  shoes,  though  expensive,  are  a  strong  investment  because  the  shoes  are  timeless.  

She  also  claims  that  it  is  a  wardrobe  necessity  for  every  woman.  The  new  Jimmy  

Choo  collection  consists  of  many  styles,  ranging  from  flats,  to  heels,  to  boots.  There  

are  also  a  variety  of  colors,  such  as  black,  champagne  glitter,  leopard  print,  and  

metallic.  Nordstrom  and  Jimmy  Choo  both  view  this  plan  as  a  good  opportunity  for  

business.  (Conti  2009).  Hopefully,  the  Jimmy  Choo  collection  will  attract  consumers  

to  Nordstrom,  and  therefore  increasing  sales.    

The  second  article,  from  Entertainment  Newsweekly,  discusses  how  Nordstrom  

has  teamed  up  with  Summit  Entertainment,  a  worldwide  theatrical  motion  picture  

studio,  to  produce  an  exclusive  line  of  fashion  and  jewelry  based  off  of  the  hit  book  

and  movie  series,  Twilight.  The  Twilight  merchandise  has  already  been  available  on  

Nordstrom’s  website  since  October  1,  2009.  However,  the  anticipated  apparel  and  

jewelry  will  not  be  available  in  Nordstrom  stores  until  October  15,  2009.  The  

merchandise  will  include  “t-­‐shirts,  tanks,  and  hoodies  that  reflect  the  mood  and  

spirit  of  the  film”.  (Bailey  2009).  In  terms  of  jewelry,  the  collection  consists  of  silver  

and  gold  plated  bracelets,  necklaces,  earrings,  and  key  fobs.  (Bailey  2009).  

Nordstrom  believes  that  this  opportunity  will  enable  the  millions  of  Twilight  fans  to  

show  their  love  towards  it  by  sporting  the  Twilight  merchandise  and  even  pairing  it  

with  other  articles  of  clothing  from  Nordstrom  to  create  their  own  look.  (Bailey  

2009).  Nordstrom  is  not  only  selling  Twilight-­‐inspired  products,  but  it  is  also  

creating  excitement  among  the  customers  by  hosting  different  events  to  celebrate  

the  second  movie  of  the  Twilight  series,  such  as  advanced  screening  parties.  This  is  

relevant  to  Nordstrom’s  business  because  the  hope  is  that  fans  of  Twilight  will  be  

attracted  to  the  inspired  clothing  and  jewelry.  Nordstrom  believes  that  the  events  

will  help  market  the  new  merchandise,  which,  if  popular,  will  spark  increased  sales  

for  Nordstrom  and  its  business.    

I  am  impressed  with  Nordstrom’s  positive  attitude  towards  increasing  their  

sales,  despite  their  recent  decrease  in  sales  as  a  result  of  the  economy.  I  believe  that  

because  Nordstrom  has  taken  on  a  new  strategy  with  an  optimistic  outlook,  they  

will  succeed.  I  also  believe  that  their  new  Twilight  line  will  help  them  amplify  their  

earnings.  As  a  dedicated  Nordstrom  customer,  I  hope  that  through  its  hard  work  and  

new,  creative  ideas,  it  will  fulfill  its  wish  to  climb  the  Top  100  Retail  ladder  even  

further  than  before.  I  have  learned  about  the  background  of  Nordstrom,  such  as  the  

large  amount  of  its  family  involvement  in  the  company,  and  also  when  it  was  

founded.  I  also  admire  the  fact  that  although  Nordstrom  is  already  known  for  its  

excellent  customer  service  and  return  policy,  it  is  trying  to  work  harder  to  improve  

it  even  more.  Nordstrom  does  not  start  to  slow  down  its  efforts,  even  after  to  be  

proven  successful.  Instead,  the  company  does  more  research  to  improve  even  more.  

Nordstrom  never  stops  striving  to  impress  its  customers,  shareholders,  and  

ultimately  reach  its  goal.    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bibliography  

Bailey,  John.  Nordstrom,  Inc.;  Nordstrom  to  Launch  Exclusive  Twilight  Saga:  New  

  Moon  Apparel  and  Jewelry  Collection  in  October.  (2009,  August).  

  Entertainment  Newsweekly.  Retrieved  October  5,  2009,  from  ABI/INFORM  

  Trade  &  Industry.     (Document  ID:  1808147711).    

Conti,  Samantha.  (2009,  September).  Jimmy  Choo  Launches  Classic  Line.  WWD,  

  198(64),  5.  Retrieved  October  5,  2009,  from  ABI/INFORM  Trade  &  Industry.  

  (Document  ID:  1867772751).    

Biesada,  A.  (2009).  Nordstrom,  Inc.  Retrieved  from  

  http://premium.hoovers.com/subscribe/co/factsheet.xhtml?ID=14261.  

  ID=14261.    

Nordstrom  Inc.  (2009).  Nordstrom:  Investor  Relations.  Retrieved  from  

  http://phx.corporate-­‐ir.net/phoenix.zhtml?c=93295&p=irol-­‐irhome.    

Nordstrom  Inc.  (2009).  Nordstrom  2008  Annual  Report.  Retrieved  from  

  https://materials.proxyvote.com/Approved/655664/20090311/AR_38144/

  HTML2/default.htm.    

Schultz,  D.P.  (2009,  July).  Top  100  Retailers.  Retrieved  from  

  www.stores.org/Current_Issue/2009/07/cover.asp?utm_source=July09&ut

  m_medium=enewsletter&utm_campaign=ST_FirstEdition