Nordstrom

This is the page for the department store. For individuals by the name of Nordstrom see Nordstrom (disambiguation).

Nordstrom, Inc.

File:NordstromPNGlogo.PNG
Company type	Public (NYSE: JWN)
Industry	Retail
Founded	1901
Headquarters	Seattle, Washington, USA
Products	Clothing, footwear, bedding, furniture, jewelry, beauty products, and housewares.
Website	www.nordstrom.com

Nordstrom, Inc. (NYSE: JWN) is an upscale department store chain in the United States. Initially a shoe retailer, the company today also sells clothing, accessories, handbags, jewelry, cosmetics, fragrance, and home decor. Unlike its direct competitors Nordstrom offers a large selection of bridge merchandise, allowing the company to serve a broader customer base. The corporate headquarters and the flagship store are located in Downtown Seattle, Washington.

History

Nordstrom's headquarters and flagship store in downtown Seattle.

Beginnings

In 1887, 16-year-old John W. Nordstrom left his home country of Sweden for the promise of New York City, arriving with only five dollars and unable to speak English.

Nordstrom made his way across the continent working in mines and logging camps, until he reached California, and the news of the Gold Rush in Alaska. Within two years of heading north, John had earned $13,000 in a gold mine stake and returned to Seattle.

Back in the Northwest, John was eager to invest his money. He had befriended a man while in Alaska, Carl Wallin, who owned a shoe repair shop in downtown Seattle. It wasn't long before the two decided to go into partnership and open a shoe store together.

In 1901, the two opened their first shoe store, Wallin & Nordstrom, in downtown Seattle. This was the start of what would become Nordstrom, Inc.

From the beginning, John's business philosophy was based on exceptional service, selection, quality and value. The company built a devoted customer base; and in 1923, the partners added their second store.

In 1928, John Nordstrom retired and sold his share of the company to his sons, Everett and Elmer. Carl Wallin retired a year later and also sold his share of the company to the Nordstrom sons. A third son, Lloyd, joined the team in 1933.

The company grew to become the largest independent shoe chain in the United States. By 1960, Nordstrom had eight stores in Washington and Oregon, and the downtown Seattle store became the largest shoe store in the country.

Addition of clothing

File:NordstromRACKLogo.png

Nordstrom Rack, the company's off-price clearance store, has locations in traditional shopping centers rather than malls. It competes directly with other off-price stores such as Ross Dress For Less, Marshalls, T.J. Maxx, and Stein Mart.

By the early 1960's, the company was looking for new ways to spread its wings. Venturing into the clothing market, Nordstrom purchased Best Apparel, a Seattle-based clothing store, in 1963.

Three years later, Nordstrom purchased a Portland, Oregon fashion retail store and merged it with their existing Portland shoe store. For the first time, customers were greeted with a selection of both shoes and fine apparel under a new store name: Nordstrom Best.

Men's clothing and children's wear were added in 1966, expanding the store to meet the wardrobe needs of the entire family. Business prospered and within two years, two new stores opened in Washington.

In 1968, the three brothers decided to retire and hand the company over to the third Nordstrom generation. The company was now led by Everett's son Bruce, Elmer's sons James and John, Lloyd's son-in-law Jack McMillan and family friend Bob Bender.

Early expansion

The exterior of a typical Nordstrom department store at The Florida Mall located in Orlando, Florida.

The company went public in 1971. Just two years later, Nordstrom sales passed the $100 million mark and the company was recognized as the largest-volume West Coast fashion speciality store. This same year, the name was formally changed to Nordstrom, Inc.

By 1975, the first Nordstrom Rack was opened in Seattle as a clearance center for full-line store merchandise. Three years later, the company moved into the competitive California market; and by 1988, Nordstrom had made the big move to the East Coast with the opening of a beautiful new store in Virginia.

While Nordstrom was growing nationally, it focused on catering to customers' needs, individually. Instead of categorizing departments by merchandise, Nordstrom created fashion departments that fit individuals' lifestyles.

Today

Today, Nordstrom has chosen to grow both methodically and organically over the years, eschewing the growth-for-growth's sake acquisitions of other companies, expanding to Alaska in 1975, Southern California only in 1978, Northern California in 1982, the East Coast in 1988, the Midwest in 1991, Texas in 1996 and the Southeast in 1998. The company has generally preferred to build stores from the ground-up when possible. Nordstrom has grown from one downtown Seattle shoe store into a nationwide fashion speciality chain with renowned services, generous size ranges and a selection of the finest apparel, shoes and accessories for the entire family. Currently, there are 99 full-line stores and 47 Nordstrom Rack's in 27 different states.

Customer service

Nordstrom is well-known for its customer service, so much so that several urban legends have appeared regarding the store. One of the best known legends is purported to have taken place at the Anchorage store soon after its 1975 purchase from Alaska Commercial Company. A customer, unaware that the store had changed hands, returned a set of tires. Although Nordstrom had never sold tires since opening, it was determined not to be the fault of the customer the store had changed hands, and the return was accepted. The urban legend watch website Snopes has not been able to confirm or deny the authenticity of the story. While the authenticity of that story is not confirmed, many Nordstrom customers will attest that Nordstrom will refund the purchase price of an item bought at another department store provided they carry the brand.[2]

Here is the statement regarding Nordstrom's policy about finding a lower purchase price elsewhere, copied from the Nordstrom website:

• We assure you'll never pay more. If you find the same item elsewhere for a lower price, we will gladly match it. Our Customer Service Specialists are ready to assist you, simply call 1-888-282-6060, 24 hours a day, 7 days a week.

In other words, if a customer finds the identical item (including brand) elsewhere for a lower price, Nordstrom will refund the difference to its customer or will sell the item to the customer for that lower price.

Nordstrom employees are provided many incentives to continually provide excellent customer service, and they are handsomely rewarded for their efforts. The majority of Nordstrom's salespeople earn commission on sales. Another motivator is Nordstrom's "Pacesetter" program. Each department has a certain quota that salespeople must reach in order to earn the title of Pacesetter. For example, the annual goal for a salesperson working in a women's clothing department is $330,000 in sales. Not only do Pacesetters get to attend an awards ceremony in their honor, but they also receive what is the equivalent of a manager's discount, 33%, and a variety of other gifts, such as customized Pacesetter business cards.

Employee handbook

New employees are given a copy of the famous Nordstrom's Employee Handbook -- a single 5 x 8 inch gray card containing 75 words:

Diversity Mission Statement

Nordstrom is highly dedicated to variety within the company as noted in the following excerpt from their diversity mission statement:

At Nordstrom, we value the richness that diversity brings to our workforce—it makes our company better and the communities we serve stronger. We are proud of our efforts to maintain a workforce that represents many backgrounds, and are deeply committed to cultivating an environment where the contributions of every employee, customer, and vendor are respected.

Notable achievements

• Nordstrom was listed at No. 24 in Fortune magazine's 100 Best Companies to Work For 2007. (Nordstrom is a Hall of Fame member of Fortune magazine's "100 Best Companies to Work For" list.)
• Nordstrom was at No. 46 on the same list in 2006 and at No. 88 in 2005.

References

Spector, Robert. Lessons from the Nordstrom Way: How Companies are Emulating the #1 Customer Service Company, Lessons from the Nordstrom Way: How Companies are Emulating the #1 Customer Service Company, 2000. Accessed May 13, 2007

External links

• Nordstrom Official Website