Full Description

Nordstrom, Inc., incorporated in 1946, is a fashion specialty retailer that offers a selection of apparel, shoes, cosmetics and accessories for women, men and children. As of March 20, 2009, the Company operated 171 stores located in 28 states in the United States. It includes 109 Nordstrom full line stores, 58 Nordstrom Rack stores, two clearance stores that operate under the name Last Chance, and two Jeffrey boutiques. Nordstrom, Inc. offers a selection of brand name and private-label merchandise. The Company offers its products through multiple retail channels, including its Full-Line Nordstrom stores, its discount Nordstrom Rack stores, its catalogs and on the Internet at www.nordstrom.com. Its stores are located throughout the United States. In addition, the Company offers its customers a variety of payment products and services, including its loyalty program. Nordstrom, Inc. operates in four business segments: Retail Stores, Direct, Credit, and Other.

The Retail Stores derives its revenues from sales of apparel, shoes, cosmetics and accessories. The Nordstrom Rack stores purchase merchandise directly from manufacturers and also serve as outlets for clearance merchandise from its full-line stores. During the fiscal year ended January 31, 2009 (fiscal 2009), the Company opened eight full-line stores (Aventura, Florida; Honolulu, Hawaii; Burlington, Massachusetts; Clinton Township, Michigan; Thousand Oaks, California; Indianapolis, Indiana; Pittsburgh, Pennsylvania, and Naples, Florida), relocated one full-line store (Tacoma, Washington) and opened six Rack stores (White Plains, New York; Laguna Hills, California; Naperville, Illinois; Lyndhurst, Ohio; Danvers, Massachusetts, and San Antonio, Texas). As of January 31, 2009, it had relocated one full-line store (Murray, Utah) and opened two new Rack stores (Paramus, New Jersey and Dallas, Texas).

The Company’s Direct segment generates revenues from sales of apparel, shoes, cosmetics and accessories by serving its customers on the Internet at www.nordstrom.com and through its catalogs. The Direct segment’s sales are primarily shipped via third-party carriers from the Company’s fulfillment center in Cedar Rapids, Iowa. Through its wholly owned federal savings bank, Nordstrom fsb, Nordstrom, Inc. offers a private label card, two Nordstrom VISA credit cards and a debit card for Nordstrom purchases. The credit and debit cards feature a shopping-based loyalty program designed for customer visits and spending in its Retail Stores and Direct segments.

The Company’s Credit segment generates income through finance charges and other fees on these cards. Nordstrom, Inc.’s Other segment includes its product development team, called Nordstrom Product Group, which designs and contracts to manufacture private label merchandise sold in its Retail Stores and Direct. In addition, this segment includes the Company’s corporate center operations.