Nordstrom

Founding and early growth

Nordstrom traces its origins to the partnership between Swedish immigrant John W. Nordstrom and shoemaker Carl F. Wallin. Nordstrom had immigrated to the United States in 1887, worked on a farm, and later prospected during the Klondike Gold Rush in Canada's Yukon Territory. After selling a gold claim, he returned to Seattle and, with Wallin, opened the Wallin & Nordstrom shoe store in 1901. The business remained focused exclusively on footwear for over six decades. John Nordstrom retired in 1928, selling his shares to his sons Everett and Elmer, and Wallin followed suit in 1929. The company was renamed simply Nordstrom in 1930, and a third brother, Lloyd, joined the firm in 1933, establishing the family leadership that would guide the company for generations.

The company's first major expansion beyond shoes came in 1963 with the purchase of Seattle-based Best's Apparel, leading to a temporary name change to Nordstrom Best. By 1971, the transformation into a full-line department store was complete, and the company went public with a listing on the NASDAQ exchange. The Nordstrom family also played a key role in bringing professional football to Seattle, with Lloyd Nordstrom serving as the majority partner for the consortium that secured the NFL franchise that became the Seattle Seahawks in 1974. The family sold the team in 1988 for $80 million. A significant operational milestone was reached in 1973 with the creation of the Nordstrom Rack division, which began as a single clearance store in Seattle.

National expansion and diversification

Nordstrom pursued a deliberate strategy of geographic expansion throughout the late 20th century, moving beyond its Pacific Northwest base. Its first store in Southern California opened at South Coast Plaza in Costa Mesa in 1978, marking the beginning of a major push into that market. The company used a decentralized regional structure, opening anchor stores to serve as training and recruitment hubs for further growth in new territories. Key regional entries included Tysons Corner Center in Virginia for the Northeast in 1988, Oakbrook Center in Illinois for the Midwest in 1991, Dallas for the Southwest in 1996, and Perimeter Mall in Georgia for the Southeast in 1998. By 1995, the chain had opened 46 full-line stores since its 1978 California debut.

The company also diversified its operations beyond physical retail. It launched a direct sales catalog division in 1993, which later evolved into its e-commerce business. In 1991, it formed Nordstrom FSB, a federally chartered savings bank that offers credit cards, checking accounts, and other financial products linked to its customer loyalty program, Nordstrom Rewards. A significant store development was the 1998 relocation of its downtown Seattle flagship to the former Frederick & Nelson building, which at 383,000 square feet remains its largest location. Leadership transitioned briefly outside the family in 1997 with the appointment of John Whitacre as CEO, but the Nordstrom family reasserted control in 2000, with Blake Nordstrom becoming president.

Operations in the 21st century

The 21st century brought further evolution, including significant digital initiatives and market entries. In 2011, Nordstrom acquired the flash-sale website HauteLook for $180 million in stock to bolster its online presence. It tested new retail concepts like the charitable Treasure & Bond store in New York's SoHo neighbourhood in 2011. The company made a major push into the Manhattan market, opening a full-line store at Columbus Circle in 2018. It also expanded its partnership model, hosting Tesla Motors retail galleries inside select stores starting in 2016. The decade saw the continuation of family leadership, with brothers Pete and Erik Nordstrom joining Blake as co-presidents in 2015 until Blake's sudden death in January 2019.

Nordstrom faced several public controversies and market challenges. In 2017, the company's decision to drop Ivanka Trump's fashion line, citing poor sales, drew a critical tweet from then-President Donald Trump. The company's stock initially dipped but recovered by the end of the trading day. That same year, the founding family explored taking the company private but suspended efforts due to challenging financing terms. The COVID-19 pandemic forced the temporary closure of all stores in March 2020, leading to the permanent shuttering of 16 locations by August. In a significant corporate shift, the Nordstrom family, in partnership with Mexican retailer El Puerto de Liverpool, finalized a deal to take the company private in May 2025, valued at $6.25 billion, ending its listing on the New York Stock Exchange.

• 2011: Acquired online retailer HauteLook.
• 2015: Blake, Erik, and Pete Nordstrom served as co-presidents.
• 2017: Dropped Ivanka Trump brand. Launched first Nordstrom Local service hub.
• 2019: Blake Nordstrom died. Digital sales reached 33% of total.
• 2020: Erik Nordstrom became sole CEO. Stores temporarily closed due to pandemic.
• 2021: Announced phase-out of fur and exotic skins. Partnered with 11 Honoré for plus-sized fashion.
• 2025: Company taken private in deal with El Puerto de Liverpool. Involved in design patent dispute with POPFLEX.

Foray into the Canadian market

Nordstrom's expansion into Canada represented a major international venture, announced in September 2012. The company planned a long-term goal of nine full-line stores, with an initial focus on high-profile shopping centres, many in spaces formerly occupied by Sears Canada. The Canadian division, Nordstrom Canada Retail Inc., aimed to compete with established retailers like Holt Renfrew and Hudson's Bay. The first store opened at Chinook Centre in Calgary on September 19, 2014, followed by locations in Ottawa, Vancouver, and Toronto. The six full-line Canadian stores were all in operation by September 2017, with the Toronto Eaton Centre location opening in September 2016.

The company supplemented its full-line stores with the off-price Nordstrom Rack format in Canada. The first Rack opened at Vaughan Mills in Ontario on March 21, 2018. This was quickly followed by several others, including locations in Calgary, Toronto, Mississauga, Ottawa, and Edmonton throughout 2018. Despite this initial build-out, Nordstrom announced on March 2, 2023, that it would exit the Canadian market entirely, resulting in the closure of all 13 stores (6 full-line and 7 Rack locations) and the loss of approximately 2,500 jobs. The final Canadian stores closed on June 13, 2023, ending the company's nearly nine-year presence in the country.

Business divisions and retail strategy

Nordstrom operates through several distinct retail formats. The core full-line Nordstrom department stores offer a wide range of apparel, shoes, accessories, and beauty products, competing with other upscale retailers like Neiman Marcus and Saks Fifth Avenue. The Nordstrom Rack division functions as its off-price arm, selling clearance merchandise from full-line stores and specially purchased goods at discounted prices, competing with chains like TJX and Ross Stores. A newer concept, Nordstrom Local, launched in West Hollywood in 2017, focuses on services like personal styling, alterations, and returns without carrying significant in-store inventory, acting as a service hub.

The company's strategy has long emphasized customer service, often cited as a key differentiator. Its loyalty program, Nordstrom Rewards, is integrated with financial products from its subsidiary, Nordstrom FSB, which issues store credit cards and offers banking services. The company has aggressively grown its digital sales channel, which accounted for 33 percent of total sales in fiscal 2019. This e-commerce operation is supported by distribution centres across the United States. Merchandising decisions are frequently updated, with the company cutting roughly 10 percent of its poorest-performing brands annually and introducing new partnerships, such as its 2021 agreement to carry plus-sized designs from 11 Honoré.

Recent controversies and legal matters

In recent years, Nordstrom has been involved in notable public disputes and legal challenges. In early 2025, fitness entrepreneur Cassey Ho, founder of the POPFLEX brand, publicly accused Nordstrom and the brand Gottex of infringing on her U.S. design patent for a "Pirouette Skort." Ho identified a similar "Tutu Skort" sold at Nordstrom and Nordstrom Rack as a copy. After a cease-and-desist letter, Gottex's lawyers threatened a countersuit. Nordstrom removed the product, but Ho declined a subsequent settlement offer because it included a non-disclosure agreement with a $250,000 penalty clause for further public discussion. The case highlighted tensions between independent designers and large retailers over product design imitation.

The company also faced criticism for cultural insensitivity in its merchandising. In March 2025, Nordstrom's website listed an "Indian Souvenir Bag" for $48, which was identified by critics as a *jhola*, a common, inexpensive bag in India. Many accused the retailer of cultural appropriation and rebranding a utilitarian item for significant profit. Earlier, in 2017, the retailer's decision to stop carrying Ivanka Trump's brand due to weak sales became a political flashpoint after President Donald Trump publicly criticized the company on social media. These incidents illustrate the reputational risks modern retailers face in a connected global marketplace.

Questions about Nordstrom

When did Nordstrom open and close its stores in Canada?

Nordstrom announced its Canadian expansion in September 2012. The first store opened at Chinook Centre in Calgary on September 19, 2014. The company operated six full-line department stores and seven Nordstrom Rack off-price locations across the country. However, on March 2, 2023, Nordstrom announced it was exiting the Canadian market. All 13 Canadian stores were permanently closed by June 13, 2023, resulting in approximately 2,500 job losses.

What is the difference between Nordstrom and Nordstrom Rack?

Nordstrom refers to the chain's full-line, upscale department stores that offer a wide assortment of apparel, shoes, accessories, and beauty products. Nordstrom Rack is its off-price division, which sells clearance merchandise from the full-line stores as well as specially purchased goods at discounted prices. Nordstrom Rack stores are typically smaller and focus on value, competing with retailers like TJX Companies. The full-line stores compete with other department stores like Neiman Marcus and Saks Fifth Avenue.

Is Nordstrom still a publicly traded company?

No, Nordstrom is no longer publicly traded. In December 2024, the company announced a plan to go private in a deal valued at $6.25 billion. The agreement 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 stake. The deal was finalized on May 20, 2025, at which point Nordstrom's stock (ticker JWN) was removed from the New York Stock Exchange.

What was the POPFLEX design patent dispute about?

In early 2025, activewear designer Cassey Ho alleged that Nordstrom and the brand Gottex were selling a "Tutu Skort" that infringed on her U.S. design patent for the "Pirouette Skort. Ho sent a cease-and-desist letter, after which Gottex threatened a counter-lawsuit. Nordstrom removed the product from its stores and website. Ho later stated she declined a settlement offer because it required a non-disclosure agreement with a $250,000 penalty for future public comments. The dispute became a noted example of an independent designer challenging alleged design copying by major retailers.

Who owns and runs Nordstrom?

Nordstrom is owned and run by the Nordstrom family, which holds a controlling stake. The company was founded by John W. Nordstrom and Carl F. Wallin in 1901 and has been predominantly led by family members throughout its history. In December 2024, a plan was announced to take the company private in a deal valued at $6.25 billion. Under this plan, the Nordstrom family retains a 50.1 percent controlling stake, while the Mexican department store El Puerto de Liverpool owns 49.9 percent. Erik Nordstrom, a grandson of the founder, has been the company's chief executive officer since March 2020. The company's stock was subsequently removed from the New York Stock Exchange in May 2025 when the deal was finalized.

Where is Nordstrom headquartered?

Nordstrom is headquartered in Seattle, Washington. The American upmarket department store chain was founded there in 1901 by John W. Nordstrom and Carl F. Wallin. Its corporate headquarters remain in Seattle, which is also home to its largest flagship store. This flagship location, spanning 383,000 square feet, opened in the former Frederick & Nelson building in downtown Seattle in 1998 after a two year renovation was completed in 2016. While Nordstrom operates distribution centres in several other states, its central corporate operations and historical roots are firmly located in Seattle.

Sources and further reading

• Nordstrom (Wikipedia)
• Nordstrom Inc Company Profile (globaldata.com)
• Careers at Nordstrom (careers.nordstrom.com)
• Nordstrom | Company Overview & News (forbes.com)

Checked by the Yadude Books desk. Last updated 2026-10-23.