Nordstrom

Founding and Early Growth

Nordstrom traces its origins to Swedish immigrant John W. Nordstrom, who was born Johan Wilhelm Nordström in 1871 near Luleå. He immigrated to the United States at age sixteen in 1887, initially working in Michigan before buying a potato farm in Arlington, Washington. In 1897, he joined the Klondike Gold Rush in Canada's Yukon Territory, where after two years he sold a gold claim for $13,000. Returning to Seattle, he married Hilda Carlson in 1900 and, with shoemaker Carl F. Wallin, opened the first Wallin & Nordstrom shoe store in 1901. The store was adjacent to Wallin's shoe repair shop, and the partnership marked the humble beginning of the retail empire.

The business remained a family-run shoe retailer for decades. John W. Nordstrom retired in 1928, selling his shares to his sons Everett and Elmer. Carl Wallin retired and sold his shares to the brothers the following year. In 1930, a remodeled store on Second Avenue reopened under the new name Nordstrom. A third brother, Lloyd Nordstrom, joined the company in 1933, and the three siblings ran the business together for nearly forty years. By 1958, the chain had expanded to eight stores across Washington and Oregon but sold only footwear. The company's transformation began in 1963 with the purchase of Best's Apparel of Seattle, which added clothing and prompted a name change to Nordstrom Best.

Becoming a Public Company and National Expansion

In 1971, the company went public, listing on the NASDAQ exchange as one of its early listings, and simplified its name to Nordstrom. That same year, the founders' sons took the company beyond its shoe store roots to become a full-line retailer. The Nordstrom family also played a role in professional sports when, in 1974, Lloyd Nordstrom represented the family as majority partner in the consortium awarded an NFL franchise for Seattle, which became the Seattle Seahawks. Lloyd Nordstrom died in January 1976 before the team played its first game, and the family sold the Seahawks in August 1988 for $80 million.

Nordstrom launched its off-price Nordstrom Rack division with a clearance store in Seattle in 1975. It expanded into Alaska that same year through the acquisition of Northern Commercial Company, its only expansion by acquisition. A major move came in 1978 with the opening of its first Southern California store at South Coast Plaza in Costa Mesa. This established a successful template for regional growth, where an initial flagship store would serve as a training and recruitment base for further stores in that region, often supported by a dedicated distribution centre. From 1978 to 1995, Nordstrom opened 46 full-line stores.

The company experimented with other formats, launching the Place Two chain in 1976 for smaller markets with a limited apparel selection. By 1983 there were ten Place Two stores, but the division was discontinued due to high upgrade costs, with the last two stores closing in April 1995. Nordstrom also diversified beyond physical retail, starting a catalog division in 1993 that evolved into an e-commerce business. Furthermore, it formed Nordstrom FSB, a federally chartered savings bank, in 1991 to offer credit cards and banking products tied to its Nordstrom Rewards loyalty program.

Leadership Transitions and 21st Century Strategy

Leadership of the company began to transition in the 1990s. The fourth generation of Nordstrom family members served as co-presidents starting in 1995. In 1997, John Whitacre was appointed as the first chief executive officer from outside the Nordstrom family. The family reasserted control in 2000, with Bruce Nordstrom's sons assuming senior roles. Blake Nordstrom became president in 2000, and his brothers Erik and Peter joined him as co-presidents in May 2015. This arrangement continued until Blake Nordstrom's sudden death at age 58 in January 2019.

Under this generation, Nordstrom pursued strategic acquisitions and new market entries to adapt to a changing retail environment. In February 2011, the company acquired the flash-sale website HauteLook for $180 million in stock plus potential performance-based payments. It tested new retail concepts like the charity-focused Treasure & Bond store in New York's SoHo neighbourhood in 2011. The company finally entered the Manhattan market with a flagship store at Columbus Circle in April 2018. It also launched Nordstrom Local, a service-focused concept without full inventory, in West Hollywood in October 2017. The company formed partnerships, such as hosting Tesla Motors retail galleries inside select stores starting in 2016.

Nordstrom also faced public controversies. In February 2017, it announced it would stop carrying Ivanka Trump's fashion line, citing weak sales as part of its routine practice of cutting underperforming brands. This prompted a critical tweet from then-President Donald Trump, though the company's stock recovered by the end of the trading day. In 2017, the founding family, which owned 31.2 percent of the company, attempted to take Nordstrom private but suspended the effort due to difficulty securing financing at acceptable terms.

Nordstrom's Entry and Exit from Canada

Nordstrom announced its planned expansion into Canada on September 13, 2012, viewing it as a major growth opportunity. The initial strategy focused on taking over vacated Sears Canada locations in prominent shopping centres, many managed by Cadillac Fairview. The first phase announced four full-line stores, with a long-term expectation of up to nine. The first Canadian store opened at Chinook Centre in Calgary on September 19, 2014. This was followed by openings at Rideau Centre in Ottawa on March 6, 2015, at Pacific Centre in Vancouver on September 18, 2015, and at Toronto Eaton Centre on September 18, 2016.

Two additional full-line stores were new constructions. A store at Sherway Gardens in Toronto opened on September 15, 2017, and a location at Yorkdale Shopping Centre opened on October 21, 2016. The company also introduced its off-price Nordstrom Rack format to Canada. The first Rack opened at Vaughan Mills on March 21, 2018, followed by locations in Calgary, Toronto, Mississauga, Ottawa, and Edmonton throughout 2018. At its peak, Nordstrom Canada operated six full-line stores and seven Nordstrom Rack locations.

Despite this substantial investment, Nordstrom announced on March 2, 2023, that it would wind down all Canadian operations. The company stated it did not see a path to achieving profitability in the Canadian market. The closure affected approximately 2,500 employees. Liquidation sales began, and the final Canadian stores, both full-line and Rack, ceased operations on June 13, 2023, ending the company's nearly nine-year presence in the country.

Going Private and Current Operations

On December 23, 2024, Nordstrom announced a definitive agreement to become a private company in a deal valued at $6.25 billion. The transaction involved selling a 49.9 percent stake to the Mexican department store and real estate company El Puerto de Liverpool, with the Nordstrom family retaining a 50.1 percent controlling interest. CEO Erik Nordstrom stated the move marked an exciting new chapter for the business. The deal was finalized on May 20, 2025, and Nordstrom's stock was removed from the New York Stock Exchange, where it had traded under the ticker symbol JWN since 1999.

Reports following the privatization indicate the company is benefiting from the flexibility of private ownership, focusing on long-term strategy rather than quarterly earnings. A central component of its current growth plan is an accelerated expansion of the Nordstrom Rack off-price division. The company has announced numerous new Rack store openings for fall 2026 and spring 2027 across the United States. These include a new store in McAllen, Texas, in fall 2026, a location in Cypress, Texas, in fall 2026, and a return to San Francisco with a new store in fall 2026.

Nordstrom's operations continue to encompass several formats. The full-line Nordstrom department stores compete with retailers like Neiman Marcus and Saks Fifth Avenue. The Nordstrom Rack division competes with off-price chains such as TJX and Ross Stores. The Nordstrom Local service hubs provide styling and convenience services. The company's e-commerce platform, Nordstrom.com, is supported by distribution centres in locations including Ontario, California, and Gainesville, Florida. Digital sales represented 33 percent of total sales in fiscal 2019.

Recent Controversies and Legal Disputes

In early 2025, Nordstrom became involved in a public intellectual property dispute with fitness entrepreneur Cassey Ho, founder of the activewear brand POPFLEX. Ho alleged that Nordstrom and the apparel brand Gottex infringed upon her U.S. design patent for the 'Pirouette Skort'. She identified a 'Tutu Skort' sold by Nordstrom and Nordstrom Rack as an unauthorized copy. Following a cease-and-desist letter, Gottex's counsel reportedly threatened a counter-lawsuit. Nordstrom removed the product from sale. In August 2025, Ho stated she declined a settlement offer because it included a non-disclosure agreement with a $250,000 penalty for future public discussion of the matter.

The company also faced online criticism in March 2025 for listing an 'Indian Souvenir Bag' for $48 on its website. Critics argued the product, a jhola bag rooted in Indian culture, represented a colonial practice of rebranding inexpensive, sustainable local items for a high markup. This incident highlighted challenges in cultural sensitivity and product sourcing for global retailers. Nordstrom has made other policy shifts in recent years, announcing in late 2021 that its stores and websites would no longer sell products made from fur or exotic animal skins by the end of that year.

Questions about Nordstrom

Is Nordstrom a Canadian company?

No, Nordstrom is an American company headquartered in Seattle, Washington. It was founded in 1901 by John W. Nordstrom and Carl F. Wallin. The company operated in Canada from 2014 to 2023 but exited the market after determining its Canadian business could not reach profitability. All Nordstrom and Nordstrom Rack stores in Canada are now closed.

Why did Nordstrom leave Canada?

Nordstrom announced its exit from Canada in March 2023, closing all 13 of its Canadian stores. The company stated that despite significant efforts, it did not see a realistic path to achieving profitability in the Canadian market. This decision resulted in approximately 2,500 job losses. The final stores ceased operations on June 13, 2023.

What is the difference between Nordstrom and Nordstrom Rack?

Nordstrom is the company's full-line department store division that operates as an upmarket retailer. Nordstrom Rack is the company's off-price division which sells discounted merchandise. The full-line division began selling clothing in 1963 and became a full-line retailer by 1971. The off-price Nordstrom Rack division was founded in 1973.

Who owns Nordstrom now?

As of May 2025, Nordstrom is a privately held company. It was taken private in a $6.25 billion deal where 49.9 percent of the company was sold to the Mexican department store and real estate company El Puerto de Liverpool. The controlling 50.1 percent stake is held by the Nordstrom family. The company's stock was delisted from the New York Stock Exchange when the deal finalized.

Did Nordstrom ever have stores in Puerto Rico?

Yes, Nordstrom opened a full-line store in The Mall of San Juan in San Juan, Puerto Rico, in March 2015. The store suffered major damage from Hurricane Maria in 2017 and closed temporarily. It reopened in November 2018 but closed permanently in May 2020 due to the impacts of the COVID-19 pandemic. This marked the end of Nordstrom's operations in Puerto Rico.

What is Nordstrom Local?

Nordstrom Local is a smaller-format store concept the company launched in 2017, beginning in West Hollywood. Unlike traditional stores, Nordstrom Local locations do not carry a full inventory of merchandise. Instead, they focus on customer services such as personal styling, online order pick-up and returns, alterations, and gift wrapping. It is designed to offer convenience and enhanced service in urban neighbourhoods.

Sources: Wikipedia and current public reporting, checked by the Yadude Books desk. Last updated 2026-10-23.