My company is Nordstrom – Sec 10-k•
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Review the instructions for the SEC 10-K project. This week’s
report focuses on the Statement of Shareholders’ Equity.
Review the discussion board in week two on the Statement of
Shareholders’ Equity.
Write a brief report of at least one page in whole paragraphs. You
may use bullet points.
This report will assist you in the final SEC 10-K project
deliverables.
Submit it as a Word document.
Requirements
As part of our project, we must include a Statement of Owners Equity
section. This statement is a significant financial document that shows
the changes in the equity of a company over a period of time.
To create a report on the Statement of Owners Equity, please follow
these instructions:
1. Introduction: Begin with a brief introduction to the purpose of the
Statement of Owners Equity and why it is essential for businesses
and investors.
2. Key Components: Describe the key components of the Statement
of Owners Equity, including beginning equity, net income,
dividends, and ending equity. Explain how changes in these
components affect the overall equity of the business and how the
statement relates to other financial documents such as the
Balance Sheet and Income Statement.
3. Trends and Analysis: Analyze the Statement of Owners Equity
trends over time by comparing the current period to previous
periods. Identify any significant changes in equity and explain
their potential impact on the business. Discuss any challenges or
limitations in interpreting the statement.
4. Conclusion: Summarize the key points discussed in the report and
provide final thoughts on the importance of the Statement of
Owners Equity for businesses and investors.
When preparing your report, please ensure that you use accurate and
up-to-date financial data for the company. You should also use clear
and concise language and provide any relevant charts or graphs to
support your analysis.
Part 2- Income statement
Overview
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Review the instructions for the SEC 10-K project. This week’s
report focuses on the Income Statement.
Review the discussion board in week two on the Income
Statement.
Write a brief report of at least one page in whole paragraphs. You
may use bullet points.
This report will assist you in the final SEC 10-K project
deliverables.
Submit it as a Word document.
Requirements
We must include a section on the Income Statement as part of our
project. This statement is a significant financial document that provides
information on a company’s revenues and expenses during a specific
period.
To create a report on the Income Statement, please follow these
instructions:
1. Introduction: Begin with a brief introduction to the purpose of the
Income Statement and why it is important for businesses and
investors.
2. Key Components: Describe the key components of the Income
Statement, including revenues, cost of goods sold, gross profit,
operating expenses, operating income, other income/expenses,
and net income. Explain how changes in these components affect
the overall profitability of the business.
3. Trends and Analysis: Analyze the trends in the Income Statement
over time by comparing the current period to previous periods.
Identify any significant revenue, expense, or profitability changes
and explain their potential impact on the business. Discuss any
challenges or limitations in interpreting the statement.
4. Conclusion: Summarize the key points discussed in the report and
provide final thoughts on the importance of the Income Statement
for businesses and investors.
When preparing your report, please ensure that you use accurate and
up-to-date financial data for the company. You should also use clear
and concise language and provide relevant charts or graphs to support
your analysis.
Part one
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Always include your company’s name in the subject line and the link to the SEC 10K in your posting!
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Answer all of the questions below and do NOT cut and paste from the 10-K.
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Use your own words to answer.
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This week’s discussion assists in your preparation of the report due next week on
the Income Statement for your SEC 10-K company.
Discussion Requirements
Read the SEC 10-K for your company to answer the questions below.
Category: Revenue and Net Income
I have chosen Nordstrom
https://investor.nordstrom.com/sec-filings/sec-filing/10-k/0000072333-22-000060
Questions:
1. What were the corporation’s net sales, cost of goods sold, and gross profit?
Net Sales, Cost of Goods Sold, and Gross Profit:
Net Sales (Revenue): $15,092 million
Cost of Goods Sold: $9,344 million
Gross Profit: Net sales- Cost of Goods Sold= $15,092 million- $9,344= $5748 million
2. What was the corporate tax rate? The tax rate should be an item in the notes to the
financial statement. Required disclosure usually explains the federal statutory rate
and reconciliation to the actual tax rate of the company each year.
The corporate tax rate was 27.2%
3. Read the Statement of Comprehensive Income. Notice the first line is the net income
from the Income Statement. Accumulated other comprehensive net income (or net
loss) is an item in the Statement of Owners’ Equity section and the Balance Sheet.
Post the value from the Balance Sheet and comment on whether this item is
increasing or decreasing (take care with the concept of change and net income or net
loss).
The following is the net income for each year, as reported by the Consolidated Statements of
Comprehensive Income:
2022: $178 million
2021: $-690 million
2020: $496 million
2019: $564 million
As shown by the different net incomes for the different years, a drop in Nordstrom’s net income
has been illustrated. The pandemic might be the cause of the decrease. However, the company
can still improve the challenges. A quarterly report of 2023 has indicated an improvement in the
company’s income.
The balance sheet, as provided, shows that the product has been differing from one year to the
other. An increase is reported from the year 2019 to 2021. Then a significant decrease in the
product is seen in 2022. More information is also provided by the Nordstrom stakeholder’s state
of equity. It also explains the varying income for different years. No constant increase or
decrease in the product.
4. What items appear under Other Comprehensive Income (Loss)?
It is necessary to compare the performance of items for different periods. The Other
Comprehensive Income enables the comparison by allowing one to identify such trolling
items(Yahya & Hidayat, 2020). The Nordstroms financial statement clearly indicates a
brighter future for the company. It indicates that the company’s performance must be
highly rated in the future. Despite indications of a better future, some items appear under
the Comprehensive Income (loss). They include:
Direct expenses
Consolidated income of 509 million
Long-term debt to equity calculated tax rate
5. What is the account and the amount of the bottom line item on the Statement (or
Consolidated Statement) of Comprehensive Income?
At the bottom of the Consolidated Statement of Comprehensive Income, you’ll see the line item
labelled “Comprehensive income.” Here are the sums that will be applied to this line item:
2020: $1.3 billion
2019: $441 million
The fiscal year 2021 has yet to be prepared and released.
Comprehensive income represents the total change in equity during a period from non-owner
sources.
Part 2
Using the SEC 10-K for your company, answer the questions below:
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What were the total current assets?
Total current assets as of January 31, 2023, are $8.74 billion.
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What were the total current liabilities?
According to the provided consolidated balance sheets for Meta Platforms, Inc., the total current
liabilities as of January 31, 2023, were $3,314 million.
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What were the total assets and stockholders’ equity (deficit)?
By the end of 2022, Nordstrom reported the total value of its total assets to be $8,869 million.
Nordstrom had a total shareholder equity of $ 739 million.
Calculate working capital (current assets － current liabilities = working capital) and
describe how it changed from last year.
Working Capital = Total Current Assets – Total Current Liabilities
For the year 2022, Nordstrom had the following working capital
Working capital (2022)= total current assets (2022)- total current liabilities(2022)
=$8,869 million- $3,314 million
=$5,555 million
Working capital (2021) = total current assets (2021)- total current liabilities (2021)
=$9538 million- $4120 million
=$5418 million
An increase in the working capital has been recorded over the year
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Does the company have a treasury stock increase or decrease in value? Remember
that the normal balance for treasury stock is a negative value (debit balance).
Every company has several shares, which are only for the ones in the treasury and are
never released to the public. Treasury stock mostly comes from repurchasing or buyback
of shares from the shareholders. A company’s performance directly affects or indirectly
affects how the shareholders will be willing to invest in the company(Greco et al., 2016).
The presence of treasury stock is usually seen as a common element but greatly impacts
the company’s value. As indicated by the financial statement of Nordstrom company, an
increment in the working capital illustrates a significant benefit for the company. This
will increase the treasury stock since most company owners will invest more in the
company.
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What are the values for other comprehensive net income (or net loss), accumulated
deficit, and retained earnings? How are these values changing?
According to the financial statements, the following amounts should be used for other
comprehensive income (or loss), accumulated deficit, and retained earnings.
For the current fiscal year, “Other comprehensive income loss ” is listed on the balance sheet
with a value of $492 million. This means other comprehensive income was negative(Nordstrom
& Welander, 2020).
Deficit carried forward: “Retained earnings” totals $ on the current year’s balance sheet.
Accumulated debt is the sum of a company’s net losses since conception or throughout a given
time frame.
How are they changing?
This figure on the “retained earnings” tab of the current balance sheet indicates that the company
has accumulated more than retained earnings to business owners. Therefore this indicates there is
a considerable saving from the company.
References
Greco, M., Vitagliano, T., & Nordstrom, R. E. (2016). The suture of Nordstrom. International
Textbook of Aesthetic Surgery, 577–581. https://doi.org/10.1007/978-3-662-46599-8_41
Nordstrom, M., & Welander, T. (n.d.). Business Oriented Systems Maintenance Management.
Managing Corporate Information Systems Evolution and Maintenance, 326–344.
https://doi.org/10.4018/978-1-59140-366-1.ch014
Yahya, A., & Hidayat, S. (2020). The influence of current ratio, total debt to total assets, total
assets turnover, and return on assets on earnings persistence in automotive companies.
Journal of Accounting Auditing and Business, 3(1), 62.
https://doi.org/10.24198/jaab.v3i1.24959
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
☑
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended January 29, 2022
or
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to___________
Commission file number 001-15059
Nordstrom, Inc.
(Exact name of registrant as specified in its charter)
Washington
State or other jurisdiction of incorporation or organization
91-0515058
(I.R.S. Employer Identification No.)
1617 Sixth Avenue, Seattle, Washington 98101
(Address of principal executive offices)
Registrant’s telephone number, including area code (206) 628-2111
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Common stock, without par value
Trading Symbol
JWN
Name of each exchange on which registered
New York Stock Exchange
Securities registered pursuant to section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to
Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes ☑ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and
“emerging growth company” in Rule 12b-2 of the Exchange Act.
☑ Large Accelerated Filer
☐ Accelerated filer
☐ Non-accelerated filer
☐ Smaller reporting company
☐ Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its
internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public
accounting firm that prepared or issued its audit report. ☑
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑
As of July 30, 2021, the aggregate market value of the Registrant’s voting and non-voting stock held by non-affiliates of the Registrant was
approximately $4.2 billion using the closing sales price on that day of $33.10. On March 7, 2022, 159,398,577 shares of common stock were
outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Proxy Statement for the 2022 Annual Meeting of Shareholders, scheduled to be held on May 18, 2022, are incorporated into
Part II and III.
Nordstrom, Inc. and subsidiaries 1
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Table of Contents
TABLE OF CONTENTS
Page
4
6
Forward-Looking Statements
Definitions of Commonly Used Terms
PART I
Item 1.
Item 1A.
Item 1B.
Item 2.
Item 3.
Item 4.
Business.
Risk Factors.
Unresolved Staff Comments.
Properties.
Legal Proceedings.
Mine Safety Disclosures.
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11
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PART II
Item 5.
Item 6.
Item 7.
Item 7A.
Item 8.
Item 9.
Item 9A.
Item 9B.
Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities.
[Reserved]
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Quantitative and Qualitative Disclosures About Market Risk.
Financial Statements and Supplementary Data.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.
Controls and Procedures.
Other Information.
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PART III
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.
Directors, Executive Officers and Corporate Governance.
Executive Compensation.
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters.
Certain Relationships and Related Transactions, and Director Independence.
Principal Accountant Fees and Services.
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66
66
PART IV
Item 15.
Exhibit and Financial Statement Schedules.
67
Exhibit Index
Signatures
Consent of Independent Registered Public Accounting Firm
68
70
71
Nordstrom, Inc. and subsidiaries 3
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FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those
sections. Forward-looking statements are based on our management’s beliefs and assumptions and on information currently available to our
management. In some cases, forward-looking statements can be identified by terms such as “may,” “will,” “should,” “could,” “goal,” “would,”
“expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “predict,” “potential,” “pursue,” “going forward,” and similar expressions intended
to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, which may cause
our actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or
achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not
limited to, our anticipated financial outlook for the fiscal year ending January 28, 2023, trends in our operations and the following:
Strategic and Operational
• COVID-19, which may make it necessary to close our physical stores and facilities in affected areas, may have a negative impact on our
business and results, and may exacerbate the risks below,
• successful execution of our customer strategy to provide customers superior service, products and experiences, online, through our
fulfillment capabilities and in stores,
• timely and effective implementation and execution of our evolving business model, including:
◦ winning at our market strategy by providing a differentiated and seamless experience, which consists of the integration of our digital
and physical assets, development of new supply chain capabilities and timely delivery of products,
◦ broadening the reach of Nordstrom Rack, including expanding our price range and selection and leveraging our digital and physical
assets,
◦ enhancing our platforms and processes to deliver core capabilities to drive customer, employee and partner experiences both
digitally and in-store,
• our ability to effectively manage our merchandise strategy, including our ability to offer compelling assortments,
• our ability to effectively allocate and scale our marketing strategies and resources, as well as realize the expected benefits between The
Nordy Club, advertising and promotional campaigns,
• our ability to respond to the evolving retail environment, including new fashion trends, environmental considerations and our customers’
changing expectations of service and experience in stores and online, and our development of new market strategies and customer
offerings,
• our ability to mitigate the effects of disruptions in the global supply chain, including factory closures, transportation challenges or
stoppages of certain imports, and rising prices of raw materials and freight expenses,
• our ability to control costs through effective inventory management, fulfillment and supply chain processes and systems,
• our ability to acquire, develop and retain qualified and diverse talent by providing appropriate training, compelling work environments and
competitive compensation and benefits, especially in areas with increased market compensation,
• our ability to realize the expected benefits, anticipate and respond to potential risks and appropriately manage costs associated with our
credit card revenue sharing program,
• potential goodwill impairment charges, future impairment charges, fluctuations in the fair values of reporting units or of assets in the
event projected financial results are not achieved within expected time frames or our strategic direction changes,
Data, Cybersecurity and Information Technology
• successful execution of our information technology strategy, including engagement with third-party service providers,
• the impact of any systems or network failures, cybersecurity and/or security breaches, including any security breach of our systems or
those of a third-party provider that results in the theft, transfer or unauthorized disclosure of customer, employee or Company
information, or that results in the interruption of business processes, and our compliance with information security and privacy laws and
regulations, as well as third-party contractual obligations in the event of such an incident,
Reputation and Relationships
• our ability to maintain our reputation and relationships with our customers, employees, vendors and third-party partners and landlords,
• our ability to act responsibly and with transparency with respect to our corporate social responsibility practices and initiatives, meet any
communicated targets, goals or milestones,
• our ability to market our brand and distribute our products through a variety of third-party publisher or platform channels, as well as
access mobile operating system and website identifiers for personalized delivery of targeted advertising,
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Investment and Capital
• efficient and proper allocation of our capital resources,
• our ability to properly balance our investments in technology, Supply Chain Network facilities and existing and new store locations,
including the expansion of our market strategy,
• our ability to maintain or expand our presence, including timely completion of construction associated with Supply Chain Network
facilities and new, relocated and remodeled stores, as well as any potential store closures, all of which may be impacted by third parties,
consumer demand and other natural or man-made disruptions, and government responses to any such disruptions,
• market fluctuations, increases in operating costs, exit costs and overall liabilities and losses associated with owning and leasing real
estate,
• compliance with debt and operating covenants, availability and cost of credit, changes in our credit rating and changes in interest rates,
• the actual timing, price, manner and amounts of future share repurchases, dividend payments, or share issuances, if any,
Economic and External
• the length and severity of epidemics or pandemics, such as the COVID-19 pandemic, or other catastrophic events, and the related
impact on customer behavior, store and online operations and supply chain functions, as well as our future consolidated financial
position, results of operations and cash flows,
• the impact of the seasonal nature of our business and cyclical customer spending,
• the impact of economic and market conditions in the U.S. and Canada, including inflation and resulting changes to customer purchasing
behavior, unemployment and bankruptcy rates, as well as any fiscal stimulus, or the cessation of any fiscal stimulus and the resulting
impact on consumer spending and credit patterns,
• the impact of economic, environmental or political conditions,
• the impact of changing traffic patterns at shopping centers and malls,
• financial insecurity or potential insolvency experienced by our vendors, suppliers, landlords, competitors, or customers as a result of any
economic downturn,
• weather conditions, natural disasters, climate change, national security concerns, civil unrest, other market and supply chain disruptions,
the effects of tariffs, or the prospects of these events and the resulting impact on consumer spending patterns or information technology
systems and communications,
Legal and Regulatory
• our, and our vendors’, compliance with applicable domestic and international laws, regulations and ethical standards, including those
related to COVID-19, minimum wage, employment and tax, information security and privacy, consumer credit and environmental
regulations and the outcome of any claims, litigation and regulatory investigations and resolution of such matters,
• the impact of the current regulatory environment, financial system and tax reforms,
• the impact of changes in accounting rules and regulations, changes in our interpretation of the rules or regulations, or changes in
underlying assumptions, estimates or judgments.
These and other factors, including those factors we discussed in Part I, Item 1A. Risk Factors, could affect our financial results and cause
our actual results to differ materially from any forward-looking information we may provide. Given these risks, uncertainties and other
factors, undue reliance should not be placed on these forward-looking statements. Also, these forward-looking statements represent our
estimates and assumptions only as of the date of this filing. This Annual Report on Form 10-K should be read completely and with the
understanding that our actual future results may be materially different from what we expect. We hereby qualify our forward-looking
statements by these cautionary statements. Except as required by law, we assume no obligation to update these forward-looking
statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking
statements, even if new information becomes available in the future.
All references to “we,” “us,” “our,” or the “Company” mean Nordstrom, Inc. and its subsidiaries.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are
based upon information available to us as of the filing date of this Annual Report on Form 10-K, and while we believe such information forms
a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate
that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently
uncertain and investors are cautioned not to unduly rely upon these statements.
Nordstrom, Inc. and subsidiaries 5
Table of Contents
DEFINITIONS OF COMMONLY USED TERMS
Term
2019 Plan
2021 Annual Report
Adjusted EBITDA
Adjusted EBITDAR
Definition
2019 Equity Incentive Plan
Annual Report on Form 10-K filed on March 11, 2022
Adjusted earnings (loss) before interest, income taxes, depreciation and amortization (a non-GAAP financial measure)
Adjusted earnings (loss) before interest, income taxes, depreciation, amortization and rent, as defined by our Revolver covenant (a
non-GAAP financial measure)
Adjusted ROIC
Adjusted return on invested capital (a non-GAAP financial measure)
ASC
Accounting Standards Codification
ASU
Accounting Standards Update
CARES Act
Coronavirus Aid, Relief and Economic Security Act
CODM
Chief operating decision maker
COVID-19
Novel coronavirus
Digital sales
Sales conducted through a digital platform such as our websites or mobile apps. Digital sales may be self-guided by the customer,
as in a traditional online order, or facilitated by a salesperson using a virtual styling or selling tool. Digital sales may be delivered to
the customer or picked up in our Nordstrom stores, Nordstrom Rack stores or Nordstrom Local service hubs. Digital sales also
include a reserve for estimated returns.
EBIT
Earnings (loss) before interest and income taxes
EPS
Earnings (loss) per share
ESPP
Employee Stock Purchase Plan
Exchange Act
Securities Exchange Act of 1934, as amended
FASB
Financial Accounting Standards Board
Fiscal year 2021
52 fiscal weeks ending January 29, 2022
Fiscal year 2020
52 fiscal weeks ending January 30, 2021
Fiscal year 2019
52 fiscal weeks ending February 1, 2020
GAAP
U.S. generally accepted accounting principles
GMV
Gross merchandise value
Gross profit
Net sales less cost of sales and related buying and occupancy costs
Leverage Ratio
The sum of the preceding twelve months of rent expense under the previous lease guidance multiplied by six and funded debt
divided by the preceding twelve months of Adjusted EBITDAR as defined by our Revolver covenant. See Capital Resources in Item
7 for a reconciliation of our non-GAAP financial measure.
MD&A
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Nordstrom
Nordstrom.com, TrunkClub.com, Nordstrom-branded U.S. stores, Canada, which includes Nordstrom.ca, Nordstrom Canadian
stores and Nordstrom Rack Canadian stores, and Nordstrom Local
Nordstrom Local
Nordstrom Local service hubs, which offer Nordstrom order pickups, returns, alterations and other services
Nordstrom NYC
Our New York City Nordstrom flagship store, including the Men’s location
Nordstrom Rack
NordstromRack.com, Nordstrom Rack-branded U.S. stores, Last Chance clearance stores and, prior to the first quarter of 2021,
HauteLook.com
The Nordy Club
Our customer loyalty program
NYSE
New York Stock Exchange
Operating Lease Cost Fixed rent expense, including fixed common area maintenance expense, net of developer reimbursement amortization
PCAOB
Public Company Accounting Oversight Board (United States)
Property incentives
Developer and vendor reimbursements
PSU
Performance share unit
Revolver
Senior revolving credit facility
ROU asset
Operating lease right-of-use asset
RSU
Restricted stock unit
SEC
Securities and Exchange Commission
SERP
Unfunded defined benefit Supplemental Executive Retirement Plan
Secured Notes
8.750% senior secured notes due May 2025
SG&A
Selling, general and administrative
Supply Chain Network Fulfillment centers that primarily process and ship orders to our customers, distribution centers that primarily process and ship
merchandise to our stores and other facilities and omni-channel centers that both fulfill customer orders and ship merchandise to
our stores
TD
Toronto-Dominion Bank, N.A.
6
Table of Contents
PART I
Item 1. Business.
DESCRIPTION OF BUSINESS
Overview
The Company was founded in 1901 as a retail shoe business in Seattle, Washington under the guiding principle that success would come by
offering customers the very best service, selection, quality and value. We aspire to be the best fashion retailer in a digitally-connected world
by leveraging the strength of the Nordstrom and Nordstrom Rack brands. We offer an extensive selection of high-quality brand-name and
private label merchandise for women, men, young adults and children focused on apparel, shoes, beauty, accessories and home goods. No
matter how customers choose to shop, we are committed to delivering superior service, product and experience, including alterations, order
pickup, dining and styling, to make shopping fun, personalized and convenient.
Nordstrom is a leading destination for a breadth of products across brands, styles and prices complemented by unmatched services and
experiences. Nordstrom includes the following digital and physical properties:
• Nordstrom.com website and mobile application
• Nordstrom.ca website
• TrunkClub.com website
• 94 Nordstrom stores in the U.S.
• six Nordstrom stores and seven Nordstrom Rack stores in Canada
• seven Nordstrom Locals
Nordstrom Rack is a premier off-price destination with an industry-leading off-price digital presence, offering in-demand product and a
treasure hunt experience at compelling prices. Nordstrom Rack includes the following digital and physical properties:
• NordstromRack.com website and mobile application
• 240 Nordstrom Rack stores in the U.S.
• two Last Chance clearance stores
Nordstrom Rack purchases merchandise primarily from the same vendors carried at Nordstrom and also serves as an outlet for clearance
merchandise from the Nordstrom banner. We plan to expand our offerings of the most coveted brands we carry, as well as source from new
vendors, to ensure we have the selection our customers want. Currently, NordstromRack.com offers both a selection of Nordstrom Rack
merchandise and limited-time flash sale events on fashion and lifestyle brands, which formerly existed on HauteLook.com prior to the first
quarter of 2021 when it was consolidated into NordstromRack.com.
As a business, one of our key advantages lies in our ability to leverage an integrated network of physical and digital assets across both
Nordstrom and Nordstrom Rack banners. This creates flexibility and convenience for our customers, no matter how they choose to shop –
online, through our apps or in stores. This omni-channel platform is our differentiator, providing customers with four times more product
available for next day pickup, the ability to pickup or return orders to any store location regardless of purchase origin, and our suite of
personalized services.
As our business evolves, our market strategy is a key strategic growth priority. Our strategy leverages a strong store fleet and links our omnichannel capabilities at the local market level, positioning us physically closer to the customer and allowing us to drive customer engagement
through better service and greater access to product. There are two elements to this strategy: first, we aim to provide customers a greater
selection of merchandise available for next-day pickup or delivery without increasing inventory levels. Second, we are increasing
engagement with customers by offering express services such as order pickup, returns and alterations at additional convenient locations. In
2021, we expanded our strategy to 20 of our top markets, which encompass approximately 75% of our revenues.
We also receive credit card revenue through our program agreement with TD, whereby TD is the exclusive issuer of our consumer credit
cards and we perform account servicing functions. Credit card revenues, net include our portion of the ongoing credit card revenue, net of
credit losses, pursuant to our program agreement with TD.
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Products
In order to offer merchandise that our customers want, we purchase from a wide variety of high-quality domestic and foreign suppliers.
Additionally, we utilize alternative vendor partnership models beyond traditional wholesale arrangements that provide a broader assortment in
new and existing categories without a corresponding increase in owned inventory. We also have arrangements with agents and contract
manufacturers to produce our private label merchandise.
Nordstrom Rack invests in pack and hold inventory, which involves the strategic purchase of merchandise from some of our top brands in
advance of the upcoming selling seasons or to minimize inventory gaps from supply chain disruptions, allowing us to buy larger quantities of
relevant items when available, then hold a portion of it to deploy in periods with high demand, tight supply or system constraints. This
inventory is typically held for six months on average.
Return Policy
We have a fair and reasonable approach to returns, handling them on a case-by-case basis with the ultimate objective of making our
customers happy. Almost all merchandise can be returned by mail or at any store location. We have no formal policy on how long we accept
returns at Nordstrom stores, Nordstrom.com or Nordstrom.ca. Our goal is to take care of our customers, which includes making returns and
exchanges easy, whether in stores or online, where we offer free shipping on purchases and returns. Trunk Club allows customers five days
from delivery to decide what items they would like to keep or send back for free if the items are in original condition. Trunks can be returned
via mail or at any Nordstrom store. Our Nordstrom Rack stores and NordstromRack.com generally accept returns of apparel, footwear,
accessories and home products up to 45 days from the date of purchase or date of shipment with the original price tag and sales receipt.
Loyalty Program
The Nordy Club is our customer loyalty program that incorporates a traditional point and benefit system, while providing customers exclusive
access to products and events, enhanced services, personalized experiences and more convenient ways to shop. Customers accumulate
points based on their level of spending and type of participation. Upon reaching certain point thresholds, customers receive Nordstrom Notes,
which can be redeemed for goods or services across Nordstrom and Nordstrom Rack. The Nordy Club benefits vary based on the level of
customer spend, and include Bonus Points days and shopping and fashion events.
We offer customers access to a variety of payment products and services, including a selection of Nordstrom-branded Visa® credit cards in
the U.S. and Canada, as well as a Nordstrom-branded private label credit card for Nordstrom purchases. When customers use a Nordstrombranded credit or debit card, they also participate in The Nordy Club and receive additional benefits, which can vary depending on the level of
spend, including early access to the Anniversary Sale, enhanced alteration and stylist benefits and incremental accumulation of points toward
Nordstrom Notes.
Supply Chain Network
Our Supply Chain Network consists of:
• fulfillment centers that primarily process and ship orders to our customers
• distribution centers that primarily process and ship merchandise to our stores and other facilities
• omni-channel centers that both fulfill customer orders and ship merchandise to our stores
We are continually expanding and enhancing our Supply Chain Network facilities and inventory management systems to support our omnichannel capabilities and provide greater access to merchandise selection and faster delivery. We select locations and customize inventory
allocations to enable merchandise to flow more efficiently and quickly to our customers. Nordstrom online purchases are primarily shipped to
our customers from our fulfillment centers but may also be shipped from our Nordstrom stores, distribution centers or omni-channel centers.
Nordstrom in-store purchases are primarily fulfilled from that store’s inventory, but when inventory is unavailable at that store, it may also be
shipped to our customers from our fulfillment centers, distribution centers, omni-channel centers or from other Nordstrom stores. Nordstrom
Rack online purchases are primarily shipped to our customers from our fulfillment centers and distribution centers, but may also be shipped
from our Nordstrom Rack stores. Both Nordstrom and Nordstrom Rack selectively use vendor dropship to supplement online offerings, which
are then shipped directly from the vendor to the end customer.
Our first large-scale omni-channel center in Riverside, California, which supports our Nordstrom customers in the West Coast region, opened
in 2020. Nordstrom Rack inventory and fulfillment will be added to this facility in the future. Our smaller Local Omni-channel Hub in Torrance,
California was opened in 2019 and supports the greater Los Angeles market as part of our market strategy and has highly curated inventory
that serves the specialized needs of that market.
EMPLOYEES
We believe that creating an outstanding customer experience begins with creating an environment that celebrates and supports all
employees. As we strive to attract and retain the best talent in the industry, we are committed to cultivating a workplace culture in which each
of our employees is supported and feels confident bringing their full self to work.
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In 2021, we employed an average of 60,000 full- and part-time employees. Due to the seasonal nature of our business, employment
increased to approximately 72,000 for the holiday season. All of our employees are non-union.
Diversity, Inclusion & Belonging
Our diversity, inclusion and belonging strategy focuses on four pillars:
• Talent — increasing demographic diversity among our employees
• Culture — cultivating a greater sense of belonging throughout our organization
• Marketplace — consistently serving our customers through a lens of anti-racism and equity
• Leadership — setting consistent, future-oriented expectations for our leaders
Over the past several years, we amplified our efforts in these areas and set specific goals to achieve by the end of 2025, which include:
•
Doubling our charitable giving to nonprofit organizations that promote anti-racism, bringing that total to approximately $1 million a
year.
•
Delivering $500 million in retail sales from brands owned by, operated by or designed by Black and/or Latinx individuals.
•
Increasing representation of Black and Latinx individuals in people-manager roles by at least 50%.
•
Leveraging our internship program and other initiatives to help us reach qualified candidates early in their careers, with a goal on
average of at least 50% of participants in these programs coming from underrepresented populations.
We monitor and track progress against our strategy. Leading this work and driving accountability is our Diversity, Inclusion and Belonging
Action Council, co-chaired by Erik B. Nordstrom, Chief Executive Officer, Peter E. Nordstrom, President and Chief Brand Officer and Farrell
Redwine, Chief Human Resources Officer. The Council brings together a diverse mix of leaders from across our Company and a
representative from our Board of Directors to monitor, assess and measure outcomes on Company-wide programs that drive our strategy
forward.
Our Culture
We recognize the need for our employees to feel a sense of belonging and connection, especially throughout the past two years of continued
isolation. One way we seek to facilitate this sense of connection is through our eight employee-led, Nordstrom-sponsored Employee
Resource Groups that represent a variety of seen and unseen identities and serve to advance understanding and celebrate voices from
across our organization.
Looking ahead, we are committed to strengthening our employees’ sense of belonging. We survey all employees annually regarding their
sense of inclusion and psychological safety at work. With greater understanding of employees’ challenges and perspectives, we can work
toward building an ever-more supportive and inclusive culture.
Employee Safety and Well-being
The health and safety of our customers, employees and communities is something we take very seriously. At the onset of the pandemic, we
worked quickly to close our stores, find new ways to support and protect our teams and customers and keep our employees informed
throughout a tumultuous period.
When our stores reopened, we implemented robust health and safety measures designed to keep our teams and our customers safe,
including social distancing, mask wearing, hand washing, sanitizing and daily health screenings. We also installed health advisors in each
store location, fulfillment center and distribution center to support our employees and keep them informed. We continue to adjust our
approach to health and safety in keeping with Centers for Disease Control and Prevention and local jurisdictional guidance and are prepared
to make changes as the situation continues to evolve.
The pandemic also underscored the importance of supporting our employees’ mental well-being in addition to their physical safety. We
continue to offer a variety of mental, emotional and physical wellness resources to support our employees.
Total Rewards
To support our goals to retain and attract talented employees, we review our benefits and compensation approach annually.
•
Benefits: We offer a range of benefits to all employees upon meeting eligibility requirements, including health care, wellness
programs, financial/retirement plans and time away. Throughout 2021, we provided a short-term disability paid benefit for employees
with a confirmed or presumptive COVID-19 diagnosis, high-risk employees and employees who had first degree exposure. We also
provided paid time off to quarantine following potential COVID-19 exposure in the workplace, and vaccination pay for employees to
receive both doses of the COVID-19 vaccine. In addition, we increased our focus on well-being by activating a multi-year strategy to
bring our people new resources and tools to support total well-being including mental health support.
•
Compensation: We regularly review our pay in the markets in which we operate to ensure we are competitive, and update
accordingly throughout the year.
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CORPORATE RESPONSIBILITY
We believe we have a responsibility to support the many people and communities we serve. In 2020, we updated our Corporate Social
Responsibility strategy with a new set of five-year goals focused on environmental sustainability, human rights and corporate philanthropy.
These goals guide us as we work to address areas where our Company and industry have the most impact to create positive change.
In 2021, we made meaningful progress to advance our commitment toward responsible business. Specific highlights include:
•
Human Rights: We audited Nordstrom Made factories for compliance with our Partner Code of Conduct and implemented corrective
action plans where necessary. We also strengthened our policies and programs to enhance human rights protections and launched a
human rights impact assessment.
•
Women’s Rights: This year we hit a milestone: nearly 45% of Nordstrom Made products were produced in factories that offer
women’s empowerment training, bringing us closer to our goal of producing 90% of Nordstrom Made products in factories that invest
in women’s empowerment by 2025.
•
Charitable Giving: We donated nearly $11 million to over 320 organizations located in communities where we operate. Our
employees gave donations and volunteered their time to over 2,700 qualifying nonprofits and other organizations, many of which
were supported with Company matching. Together with our customers and our employees, we used our platform to drive more than
$14 million in nonprofit donations across the U.S. and Canada.
•
Environmental Sustainability: We kept approximately 290 tons of clothing out of landfills through donation, resale or refurbishment,
exceeding our goal of 250 tons. We also expanded BEAUTYCYCLE, our in-store beauty take-back and recycling program, to our
Canadian stores, and took back over five tons of beauty packaging.
Read our full list of 2025 goals and more on our corporate social responsibility efforts at NordstromCares.com.
TRADEMARKS
Our most notable trademarks include Nordstrom, Nordstrom Rack, Trunk Club, Zella, BP., Treasure & Bond, Halogen, Abound and Caslon.
Each of our trademarks is renewable indefinitely, provided it is still used in commerce at the time of the renewal.
SEASONALITY
Our business, like that of other retailers, is subject to seasonal fluctuations and cyclical trends in consumer spending. Our sales are typically
higher in our second quarter, which usually includes most of the Anniversary Sale, and in our fourth quarter due to the holidays. In 2021,
approximately one week of the Anniversary Sale shifted into our third quarter, and in 2020, as a result of COVID-19, the Anniversary Sale fell
entirely in our third quarter. Results for any one quarter are not indicative of the results that may be achieved for a full fiscal year. We plan our
merchandise purchases and receipts to coincide with expected sales trends. For instance, our merchandise purchases and receipts increase
prior to the Anniversary Sale, and we purchase and receive a larger amount of merchandise in the fall as we prepare for the holiday shopping
season (typically from late November through December). Consistent with our seasonal fluctuations, our working capital requirements have
historically increased during the months leading up to the Anniversary Sale and the holidays as we purchase inventory in anticipation of
increased sales.
COMPETITIVE CONDITIONS
We operate in a highly competitive business environment. We regularly compete with other international, national, regional and local
retailers, including internet-based businesses, omni-channel department stores, specialty stores, off-price stores and boutiques, which may
carry similar lines of merchandise. Our specific competitors vary from market to market. We believe the keys to competing in our industry are
what will always matter most to our customers: providing compelling product and outstanding service, both digitally and in stores, backed by
people who care. This includes serving customers on their terms by providing a seamless digital and physical experience, offering
compelling, curated and quality products across a range of price points, and by strategically partnering with relevant and limited distribution
brands, all in top markets.
AVAILABLE INFORMATION
We file annual, quarterly and current reports, proxy statements and other documents with the SEC. The SEC maintains a website at SEC.gov
that contains reports, proxy and information statements, and other information regarding issuers that file with the SEC.
Our website address is Nordstrom.com. Our annual and quarterly reports on Form 10-K and Form 10-Q, current reports on Form 8-K, proxy
statements, our executives’ statements of changes in beneficial ownership of securities on Form 4 and amendments to those reports filed or
furnished pursuant to Section 13(a) or 15(d) of the Exchange Act are available for free on or through our website as soon as reasonably
practicable after we electronically file the report with or furnish it to the SEC. Interested parties may also access a webcast of quarterly
earnings conference calls and other financial events through our website at investor.nordstrom.com.
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We have a long-standing commitment to upholding a high level of ethical standards. In addition, we have adopted Codes of Business
Conduct and Ethics for our employees, officers and directors and Corporate Governance Guidelines, which comply with the listing standards
of the NYSE and SEC requirements. Our Codes of Business Conduct and Ethics, Corporate Governance Guidelines and Committee
Charters for the following Board of Director Committees are available through our website:
•
Audit and Finance
•
Compensation, People and Culture
•
Corporate Governance and Nominating
•
Technology
Any amendments to these documents, or waivers of the requirements they contain, will also be available on our website.
For printed versions of these items or any other inquiries, please contact:
Nordstrom Investor Relations
1617 Sixth Avenue
Seattle, Washington 98101
InvRelations@Nordstrom.com
Item 1A. Risk Factors.
Our business faces many risks. We believe the risks described below outline the items of most concern to us. In evaluating our Company,
you should carefully consider the following factors, in addition to the other information in this 2021 Annual Report. Before you buy our
common stock or invest in our debt, you should know that making such an investment involves risks including, but not limited to, the risks
described below. Any one of the following risks could harm our business, financial condition, results of operations or reputation, each of
which could cause our stock price to decline or a default on our debt payments, and you may lose all or a part of your investment. Additional
risks, trends and uncertainties not presently known to us or that we currently believe are immaterial may also harm our business, financial
condition, results of operations or reputation.
COVID-19 RISKS
The COVID-19 global pandemic has had and may continue to have an adverse effect on our business and results of operations.
The COVID-19 pandemic continued to have widespread, rapidly evolving and unpredictable impacts on workforces, customers, consumer
sentiment, economies, financial markets and business practices. Numerous state and local jurisdictions have imposed, and others in the
future may impose, shelter-in-place orders, quarantines, vaccination requirements, executive orders and similar government orders and
restrictions for their residents to control the spread of COVID-19. The direct effects of COVID-19 and associated consumer and governmental
responses have had, and may continue to have, a material adverse impact on global economic conditions and our business, results of
operations and financial condition.
OPERATIONAL
We have experienced disruptions within our business, and our results for fiscal year 2021 were adversely impacted. Due to the uncertainty of
COVID-19 and the speed at which the pandemic has developed over the past two years, we continue to assess the situation in real time,
including government-imposed restrictions, market by market. We also saw the shifts in product and channel preferences in 2020 persist into
2021, such as a shift from occasion-based apparel to casual and home offerings, as well as a reduction in-store traffic in favor of ecommerce.
We, as well as our vendors and third-party service providers, have experienced and will continue to experience adverse operational effects
due to supply chain disruptions, labor shortages, social distancing restrictions and the need to adapt to ever-changing regulatory
requirements, operating procedures and protocols. To the extent that our employees contract COVID-19, it leads to slowdowns in business
processes and other disruptions in business operations as we engage in contact tracing and seek to limit further spread of the virus. We are
unable to accurately predict the full impact COVID-19 will have on our longer-term operations as well, particularly with respect to our current
mix of merchandise offerings, event-based categories, store traffic trends, employment relations and corporate culture.
In addition, the operations, supply chain and financial condition of many of our vendors have been and may continue to be affected by
COVID-19, including difficulty sourcing products and labor or obtaining the financing necessary to manufacture the products they sell to us.
As a result, the business disruptions caused by the spread of COVID-19 have impacted our ability to timely acquire the products we sell to
our customers. To the extent our vendors may be unable to produce, sell or ship products to us or our customers, our business may be
negatively impacted.
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ECONOMIC
We have been, and may in the future be, negatively impacted by the deterioration in economic conditions caused by the spread of COVID-19
and the follow-on impact of that deterioration on discretionary consumer spending and changes in consumer behavior. Public concern
regarding the risk of contracting COVID-19 has reduced store traffic and materially and adversely affected our business. Any resurgence
could impede economic activity, consumer confidence or discretionary spending. We are unable to accurately predict the full impact that
COVID-19 will have on our operations going forward due to uncertainties, including the currently unknowable duration and spread of COVID19, actions taken to limit the spread, the public’s willingness to comply with such actions, testing availability, the efficacy, including the
duration and protection level, and degree of public acceptance of vaccines and other treatments for COVID-19, and the impact of any
governmental regulations imposed in response to the pandemic.
To the extent the COVID-19 pandemic and its associated economic challenges adversely affects our business and financial results, it may
also have the effect of heightening many of the other risks described below, such as those risks relating to our level of indebtedness, our
need to generate sufficient cash flows to service our indebtedness and other liabilities, our ability to comply with the covenants contained in
the agreements that govern our indebtedness, our ability to attract, retain, train and develop talent and future leaders, the performance of our
credit card program with TD Bank and our ability to maintain our relationships with our customers, vendors, landlords and employees.
STRATEGIC AND OPERATIONAL RISKS
If we are unable to successfully execute our customer strategy or evolve our business model, it could negatively impact our
business and future profitability and growth.
Our market strategy is a powerful enabler for the business, allowing us to better serve customers and provide greater access to product by
leveraging all of our assets of people, product and place at the market level. As our business evolves, we continue to scale our market
strategy and focus on better serving our customers through three priorities with significant potential for growth: winning in our most important
markets, broadening the reach of Nordstrom Rack and increasing our digital velocity. Our market strategy focuses on our customers by
providing a differentiated and seamless experience in a digital world by bringing all of our assets together in each market to serve customers
when, where and how they want to shop. We aim to balance our assortment, increase the breadth of selection and continue to leverage our
digital and physical assets to increase selection and improve profitability in our Nordstrom Rack brand. As a digital first business, we are well
positioned to support our customers with a scalable platform that has been built to support continued growth. We are expanding our inventory
flexibility through alternative partnership models, including strategic brands, wholesale, vertical brands, concession, dropship and other
strategies. Additionally, we are scaling our Nordstrom Media Network, which allows our brand partners to directly connect with our customers
through on and off-site media campaigns to drive traffic, sales and engagement.
Our focus on the customer requires us to build new supply chain capabilities and enhance existing ones, develop applications for electronic
devices, improve customer-facing technology, deliver purchased products timely, enhance inventory management systems and allow greater
and more fluid inventory availability between digital and retail locations through our market strategy. In addition, these strategies will require
further expansion of and reliance on data science and analytics. This business model has a highly variable cost structure driven by fulfillment
and marketing costs and will continue to require investments in cross-channel operations and supporting technologies. There are also
inherent risks associated with the investment in new technologies and such operational and supporting technologies can be subject to failure,
disruption or unavailability and increased vulnerability to cyberattacks and other cyber incidents.
If we do not successfully implement our customer strategy, including thoroughly understanding and delivering on our customer needs and
wants, effectively integrating our digital operations and stores and scaling our market strategy, strengthening our brand awareness,
expanding our supply chain initiatives, and efficiently getting product to our customers, we may fall short of our customers’ expectations,
which would impact our brand, reputation, profitability and growth. Also, if customers shift to digital channels at a different pace than we
anticipate, we may need to quickly modify our digital and store or Nordstrom and Nordstrom Rack initiatives and investments, or if we do not
have or devote the resources necessary to execute upon these strategies, our business could be negatively impacted.
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Our business could suffer if we do not appropriately assess and react to competitive market forces and changes in customer
behavior.
The retail environment is rapidly evolving. Customer shopping preferences continue to shift, including to digital channels, and increasing
expectations for faster delivery of product. In addition, the retail environment is under significant pressure from non-traditional retailers,
including the pressure from the emergence of rental and recommerce companies. We regularly compete with other international, national,
regional and local retailers, including internet-based businesses, omni-channel department stores, specialty stores, off-price stores and
boutiques, which may carry similar lines of merchandise. Digital channels continue to facilitate comparison shopping, intensifying competition
in the retail market, and marketing digitally is controlled by a few key platforms. If we fail to adequately anticipate or respond to customer
behavior and expectations, or changing market dynamics, we may lose market share or our ability to remain competitive, causing our sales
and profitability to suffer. If the efficiency and allocation of loyalty marketing, advertising and promotional campaigns that attract customers
through various programs and media, including digital media and print, is unsuccessful in influencing consumer behavior in our digital
channels and stores, or if our competitors are more effective with their programs than we are, our growth and profitability could suffer. We
also may not gather accurate and relevant data or effectively utilize that data, which may impact our strategic planning, marketing and loyalty
programs and our overall decision making.
Our customer relationships and sales may be negatively impacted if we do not anticipate and respond to consumer preferences
and fashion trends or manage inventory levels appropriately.
Our ability to predict or respond to constantly changing fashion trends, demographics, consumer preferences and spending patterns
significantly impacts our sales and operating results. We must effectively manage our merchandise mix to curate an assortment that offers
newness and greater selection at various price points. Some merchandise may take several months from the time we place a purchase order
to the time it is received, and our ability to accelerate or modify that timeline or purchase order contents may be limited. If we do not identify
and respond to emerging trends in consumer spending and preferences quickly enough, identify the right partners that align with our
customer strategy, broaden or expand our category offering fast enough or in the right areas or develop, evolve, and retain our team’s talent,
mindset and technical skills to support changing operating models, we may harm our ability to retain our existing customers or attract new
customers. We also store a certain level of pack-and-hold inventory to deploy in periods with high demand, tight supply or system
constraints. As a result, we are vulnerable to shifts in consumer demand and misjudgments in the assortment and timing of merchandise
purchases which may impact our ability to sell through this inventory in future periods. Ensuring we optimize our inventory and improve the
planning and management of inventory through use of data and analytics is critical to serving the customer, driving growth and maximizing
profitability. If we purchase too much inventory, we may be forced to sell our merchandise at lower average margins by taking significant
markdowns, which could harm our business. Conversely, if we fail to purchase enough merchandise, or inventory does not arrive fast enough
or as expected, we may lose opportunities for additional sales and potentially harm relationships with our customers.
Any inability to mitigate global labor and merchandise pricing pressures or disruptions may negatively impact our profitability.
Our profitability depends in part on our ability to anticipate and react to operating volatility, including the cost and availability of labor and
merchandise. Increases in product and/or delivery costs, including changes in the price of raw materials to us and our vendors that are
directly or indirectly related to the production and distribution of our products or increases in energy, labor, or fuel and transportation costs,
may translate to higher sales prices, which may then impact customer demand. In the near term, we are focused on improving our internal
network and processes by diversifying our carrier capacity, gaining better end-to-end visibility of inventory and increasing velocity and
throughput in our Supply Chain Network. If we are unable to respond effectively to ongoing pricing pressures or labor shortages, or offset
such costs, there could be a material adverse impact on our business and financial results.
Our employees are key to supporting our business and operations effectively, and increased labor costs put pressure on our operating
expenses. When wage rates or benefit levels increase in particular markets, increasing our wages or benefits has negatively impacted and
may continue to negatively impact our earnings. Conversely, failing to offer competitive wages or benefits could adversely affect our ability to
attract or retain sufficient or quality employees, causing increased turnover and our customer service to suffer. Excessive turnover may result
in higher costs associated with finding, hiring, and training new employees.
Any impediment to our inventory optimization may impact our ability to drive growth and meet customer demand, affecting future results and
profitability. Shortages in certain materials and increasing pricing pressures in the highly competitive retail environment have contributed, and
may in the future continue to contribute, to fluctuations in the quality, availability and price of our merchandise. The availability of raw
materials to the U.S. may hinder our ability to meet customer demand. Vendors and other suppliers of the Company may experience similar
fluctuations or restrictions, which may subject us to the effects of their price increases. Additionally, if we do not gather complete, accurate
and timely competitive pricing data, or adequately utilize this data to implement an effective pricing strategy, our ability to successfully
compete could be negatively impacted causing our sales, profitability and results of operations to suffer.
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Improvements to our fulfillment, inventory, buying, vendor payment and accounting processes and systems could adversely affect
our business if not successfully executed.
Our business depends on accuracy throughout our product flow process. We are making investments to streamline and standardize our
fulfillment, inventory, buying, vendor payments and accounting capabilities through changes in technology, methodologies and processes.
If we encounter challenges associated with change management, inventory integrity and implementation of associated information
technology or adoption of new processes, features or capabilities, our ability to continue to successfully execute or evolve our strategy with
changes in the retail environment could be adversely affected. Or, if we are unable to maintain accurate, reliable and effective inventory
tracking systems, which are critical to our integrated omni-channel business strategy, it may adversely impact our sales and profitability and
may result in canceled orders and increased costs relative to our current expectations.
If we do not effectively attract, retain, train and develop talent and future leaders, our business may suffer.
We rely on the experience of our senior management, who have specific knowledge relating to us and our industry that is difficult to replace,
to execute our business strategies and objectives. We have succession plans in place and our Board of Directors reviews these succession
plans. If our succession plans do not adequately cover significant and unanticipated turnover, the loss of the services of any of these
individuals, or any resulting negative perceptions or reactions, could damage our reputation and our business.
Additionally, our success depends on the talents and abilities of our workforce in all areas of our business, especially personnel that can
adapt to complexities and grow their skillset across the changing environment. Our ability to successfully execute our customer strategy
depends on attracting, developing and retaining qualified talent with diverse sets of skills, especially functional and technology specialists
that directly support our strategies. We have a large workforce, and our ability to meet our labor needs is subject to various external factors
such as regional minimum wage and benefits requirements, market pressures, including prevailing wage rates, benefit mix, unemployment
levels, changing demographics, economic conditions and a dynamic regulatory environment.
We have experienced, and may continue to experience, increased employee attrition due to an intense competition for talent, a competitive
wage environment and labor shortages. In the Seattle metropolitan area, where our corporate headquarters are located, we regularly
compete for talent with many larger technology-focused companies, which may increase market compensation, especially for certain
employee groups. If we are unable to offer competitive compensation and benefits, appropriate training and development, and a compelling
work environment or sustain employee satisfaction, our culture may be adversely affected, our reputation may be damaged and we may
incur costs related to turnover.
Our program agreement with TD, or changes to that agreement, could adversely impact our business.
The program agreement with TD was consummated on terms that allow us to maintain customer-facing activities, while TD provides
Nordstrom-branded payment methods and payment processing services. If we fail to meet certain service levels, TD has the right to assume
certain individual servicing functions including managing accounts and collection activities. If we lose control of such activities and functions,
if we do not successfully respond to potential risks and appropriately manage potential costs associated with the program agreement with
TD, or if these transactions negatively impact the customer service associated with our cards, resulting in harm to our business reputation
and competitive position, our operations, cash flows and earnings could be adversely affected. If, upon expiration of our current program
agreement in 2024, a new contract has less favorable terms, our results could be negatively impacted. If TD became unwilling or unable to
provide these services or if there are changes to the risk management policies implemented under our program agreement with TD, our
results may be negatively impacted. If we lose control over certain servicing functions and TD is unable to successfully manage accounts and
collection activities, it may heighten the risk of credit losses.
DATA, CYBERSECURITY AND INFORMATION TECHNOLOGY RISKS
Even if we take appropriate measures to safeguard our information, network and environment from security breaches, our
customers, employees and business could still be exposed to risk.
We and third-party providers access, collect, store and transmit sensitive and confidential Company, customer, and employee data and
information, including consumer preferences and credit card information, all of which are subject to demanding and constantly changing
privacy and security laws and regulations. A number of jurisdictions where we do business have enacted or are considering new privacy and
data protection laws which impact our responsibilities with respect to this data, such as the California Consumer Privacy Act and the
California Privacy Rights Act. In addition, the fact that the substantial majority of our corporate employees working remotely has resulted in
increased demand on our information technology infrastructure, which can be subject to failure, disruption or unavailability and increased
vulnerability to cyberattacks and other cyber incidents.
We have taken measures to help prevent a breach of our information security and comply with cybersecurity requirements by implementing
safeguards and procedures designed to protect the security and confidentiality of, and the access to, such information. In addition, where
possible, we require our third-party providers to implement administrative, physical and technical safeguards and procedures. We, like many
companies with an ecommerce presence, as well as several of our vendors, have suffered breaches of our cybersecurity in the past and are
at risk for such breaches in the future.
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Although we and our third-party providers have implemented measures to prevent intentional or inadvertent information security breaches,
these measures do not completely eliminate cybersecurity risk. Security breaches and cyber incidents and their remediation, whether at our
Company, our third-party providers or other retailers, could expose us to a risk of loss, unauthorized release of customer, employee or
Company confidential information, litigation, investigation, regulatory enforcement action, penalties and fines, orders to stop any alleged
noncompliant activity, information technology system failures or network disruptions, increased cyber-protection and remediation costs,
financial losses, potential liability, or loss of customers’, employees’ or third-party providers’ trust and business, any of which could adversely
impact our reputation, competitiveness and financial performance. Concerns about our practices with regard to the collection, use, retention,
security or disclosure of personal information or other privacy-related matters, even if unfounded, could damage our reputation and adversely
affect our operating results.
Our business may be impacted by information technology system failures or network disruptions.
Our ability to transact with customers and operate our business depends on the efficient operation of various internal and third-party
information technology systems, including cloud computing, data centers, hardware, software and applications, to manage certain aspects of
our Company, including online and store transactions, logistics and communication, inventory and reporting systems. We seek to build quality
and secure systems, select reputable system vendors and implement procedures intended to enable us to protect our systems when we
modify them. We test our systems to address vulnerabilities and train our employees regarding practices to protect the safety of our systems.
There are inherent risks associated with modifying or replacing systems, and with new or changed relationships, including accurately
capturing and maintaining data, realizing the expected benefit of the change and managing the potential disruption of the operation of the
systems as the changes are implemented. Potential issues associated with implementing technology initiatives and the time and resources
required to optimize the benefits of new elements of our systems and infrastructure could reduce the efficiency of our operations in the short
term.
If we encounter an interruption or deterioration in critical systems or processes or experience the loss of critical data, which may result from
security or cybersecurity threats or attacks, natural disasters, accidents, power disruptions, telecommunications failures, acts of terrorism or
war, computer viruses, physical or electronic break-ins or third-party or other disruptions, our business could be harmed both in the shortterm and over a longer period. Depending on the severity of the failure, our disaster recovery plans may be inadequate or ineffective. These
events could also damage our reputation, result in increased costs or loss of sales and be expensive and time-consuming to remedy.
REPUTATION AND RELATIONSHIP RISKS
Our customer, employee, vendor, third-party partner, landlord and other stakeholder relationships could be negatively affected if
we fail to maintain our corporate culture and reputation.
We have a well-recognized culture and reputation that consumers may associate with a high level of integrity, customer service and quality
merchandise, and it is one of the reasons customers shop with us and employees choose us as a place of employment. Any significant
damage to our reputation, including damages arising from our business, privacy, diversity, environmental or social responsibility practices,
news about our Company or factors outside our control or on social media, could diminish customer trust, weaken our vendor relationships,
reduce employee morale and productivity and lead to difficulties in recruiting and retaining qualified employees. Additionally, management
may not accurately assess the impact of significant legislative changes, including those that relate to privacy, employment matters, labor
issues, environmental compliance and health care, impacting our relationship with our customers or our workforce and adversely affecting
our sales and operations.
There is also increased focus from both internal and external stakeholders on corporate social responsibility and sustainability matters. If we
do not, or are perceived not to, act responsibly with respect to our practices and initiatives, meet any communicated targets, goals or
milestones or lack transparency with our initiatives, our reputation could be damaged. We may also incur additional costs as we invest in new
ways to operate to better support our communities and the customer.
Our business depends on third parties for the production, supply and delivery of goods, and a disruption could result in lost sales
or increased costs.
Timely receipts of quality merchandise from third parties is critical to our business. Our process to identify qualified vendors and access
quality products in an efficient manner on acceptable terms and cost can be complex. Vendors and factors may also be subject to credit
capacity limits that restrict shipments. In addition, we rely on a limited number of carriers to deliver our product to customers. Ongoing
disruptions in the global supply chain, including factory closures, transportation challenges, rising freight expenses, violations of law or global
standards with respect to human rights, quality and safety by any of our importers, manufacturers or distributors, or parties upstream within
their respective supply chains, could result in delays in shipments and receipt of goods or damage our reputation. These third parties may
experience supply chain or port disruptions, stoppages of certain imports, or other difficulties due to economic, business, political,
environmental or epidemic conditions, or may shift their business models away from prior practice, any of which could negatively impact our
inventory levels, delivery timelines and ability to meet customer demand. Additionally, the countries in which merchandise is manufactured
could become subject to new trade restrictions, including increased taxation on imported goods, customs restrictions, tariffs or quotas. Such
violations, disruptions or changes could have a material adverse effect on our business, results of operations and liquidity.
Nordstrom, Inc. and subsidiaries 15
Table of Contents
We are party to contracts, transactions and business relationships with various third parties, including vendors, suppliers, service providers,
landlords and lenders, who may have performance, payment and other obligations to us. If any of the third parties with which we do business
become subject to bankruptcy, receivership or similar insolvency proceedings, our rights and benefits in relation to our contracts, transactions
and business relationships with such third parties could be terminated, modified in a manner adverse to us or otherwise impaired. We cannot
make any assurances that we would be able to arrange for alternate or replacement contracts, transactions or business relationships on
terms as favorable as our existing contracts, transactions or business relationships, if at all. Any inability on our part to do so could negatively
affect our cash flows, financial condition and results of operations.
Distribution and marketing of, and access to, our products depends on a variety of third-party publishers and platforms. If these
third parties limit, prohibit or otherwise interfere with or change the terms of the distribution, use or marketing of our products, it
could adversely affect our results of operations.
We market our brands and distribute our products through a variety of third-party publisher and platform channels. Our ability to market on
any given platform or channel is subject to the policies of that party. We are dependent on the interoperability of our products with popular
mobile operating systems, such as Android or iOS, websites, networks, technologies, products and standards that we do not control.
Additionally, mobile operating systems and websites have identifiers within their platforms that advertisers use to deliver personalized and
targeted advertising, requiring users to “opt-in”.
Changes in our relationships with mobile operating system partners, websites or mobile carriers, or in their terms of service, could reduce or
eliminate our ability to update or distribute our products on these platforms. Any changes, bugs or technical issues in such systems or
websites may limit our ability to deliver, target or measure the effectiveness of ads. There is no guarantee that popular platforms will continue
to feature our products, or that mobile device users will continue to use our products rather than competing products. If we do not pick the
platforms relevant to our customers, if the platforms give preferential treatment to competitors, limit our ability to deliver, target or measure
the effectiveness of ads, or if there is a sudden shift in platform preference, our ability to market our brand effectively could be negatively
impacted. Furthermore, to the extent that users choose not to “opt-in” for advertiser access to customer tracking, our ability to deliver, target
or measure the effectiveness of ads or drive usage on our apps is limited.
The concentration of stock ownership in a small number of our shareholders may limit a shareholder’s ability to influence
corporate matters and impact the price of our shares.
We have regularly reported in our annual proxy statements the holdings of members of the Nordstrom family, including Bruce A. Nordstrom,
our former Co-President and Chairman of the Board, his sister Anne E. Gittinger and certain members of the Nordstrom family within our
Executive Team. As of March 11, 2022, these individuals beneficially owned an aggregate of approximately 30% of our common stock. As a
result, either individually or acting together, they may be able to exercise considerable influence over matters requiring shareholder approval,
including the election of directors or other matters impacting our management or corporate governance. In addition, as reported in our
periodic filings, our Board of Directors has from time to time authorized share repurchases. While these share repurchases may be partially
offset by share issuances under our equity incentive plans and as consideration for acquisitions, the repurchases may nevertheless have the
effect of increasing the overall percentage ownership held by these shareholders. The corporate law of the State of Washington, where we
are incorporated, provides that approval of a merger or similar significant corporate transaction requires the affirmative vote of two-thirds of a
company’s outstanding shares. The interests of these shareholders may differ from the interests of our shareholders as a whole, and the
beneficial ownership of these shareholders may have the effect of discouraging offers to acquire us, delay or otherwise prevent a significant
corporate transaction because the consummation of any such transaction would likely require their approval. As a result of any of these
factors, the market price of our common stock may be affected.
INVESTMENT AND CAPITAL RISKS
If we fail to appropriately manage our capital, we may negatively impact our operations and shareholder return.
We utilize working capital to finance our operations, pay for capital expenditures and acquisitions, manage our debt levels and return value to
our shareholders through dividends and share repurchases. Additionally, in 2021, we amended our Revolver to create flexibility for dividends
and share repurchases during our Collateral Period (see Note 5: Debt and Credit Facilities in Item 8). Sufficient cash and liquidity are
necessary to fund our business. Changes in the credit and capital markets, including market disruptions, limited liquidity and interest rate
fluctuations, may increase the cost of financing or restrict access to a potential source of liquidity. A deterioration in our capital structure or
the quality and stability of our earnings could result in noncompliance with our debt covenants or a downgrade of our credit rating,
constraining the financing available to us or limiting our ability to issue dividends or repurchase shares. In 2021, Moody’s Investor Service
downgraded certain of our debt and other credit ratings. These downgrades, and any future reductions in our credit ratings, could result in
restricted access to financing and increased borrowing costs and could adversely impact our operations and financial condition. In addition, if
we do not properly allocate our capital to maximize returns, or we do not maintain financial flexibility, our operations, cash flows and returns
to shareholders could be adversely affected.
16
Table of Contents
Owning and leasing real estate exposes us to possible liabilities and losses.
We own or lease the land, buildings and equipment for all of our Supply Chain Network facilities, stores and corporate locations and are
therefore subject to all of the risks associated with owning and leasing real estate. In particular, the value of the assets could decrease, their
operating costs could increase or facilities or stores may not be opened as planned due to changes in the real estate market, demographic
trends, site competition, dependence on third-party performance or overall economic environment or may be constrained as a result of the
COVID-19 pandemic. We are also potentially subject to liability for environmental conditions, exit costs associated with disposal of a store
and commitments to pay base rent for the entire lease term or operate a store for the duration of an operating covenant. In addition, the
invalidity of, or default or termination under, any of our leases may interfere with our ability to use and operate all or a portion of certain of our
facilities, which may have an adverse impact on our operations and results.
The investment in existing and new locations may not achieve our expected returns.
The locations of our Supply Chain Network facilities and existing stores, planned store openings and relocations are assessed based upon
desirability, demographics and retail environment. In particular, we have expanded our market strategy, where we leverage and connect our
digital and physical assets within discrete geographic markets to seamlessly serve our customers within those markets and create synergies
between our digital assets, Supply Chain Network and stores. We must equip our locations with the proper processes, technology and tools
for timely and accurate fulfillment and inventory replenishment. This involves certain risks, including properly balancing our capital
investments between fulfillment capabilities, technology, digital channels, new stores, relocations and remodels, assessing the suitability of
locations in new domestic and international markets and constructing, furnishing and supplying a facility or store in a timely and cost-effective
manner, which may be affected by the actions of third parties, including but not limited to private entities and local, state or federal regulatory
agencies.
Customers’ expectations regarding speed of delivery are evolving. If we do not effectively integrate our digital and physical assets as part of
our market strategy, or select locations to optimize our market strategy, we could incur significantly higher costs and shipping times that do
not meet customer expectations, which in turn could have a material adverse effect on our business. Particularly in light of the changing
trends between digital and brick-and-mortar shopping channels, sales through our digital channels or at our stores may not meet projections,
which could adversely affect our return on investment. If we do not properly allocate capital expenditures between locations, timely complete
construction projects associated with Supply Chain Network facilities and new, relocated and remodeled stores or properly maintain any of
our properties, customer expectations may not be met, we may lose sales and may incur additional expenses.
ECONOMIC AND EXTERNAL MARKET RISKS
Our revenues and operating results are affected by the seasonal nature of our business and cyclical trends in consumer spending.
Our business, like that of other retailers, is subject to seasonal fluctuations and cyclical trends in consumer spending. Our sales are typically
higher in our second quarter, which usually includes most of the Anniversary Sale, and in our fourth quarter due to the holidays. In 2021,
approximately one week of the Anniversary Sale shifted into our third quarter, and in 2020, as a result of COVID-19, the Anniversary Sale fell
entirely in our third quarter. To provide shareholders a better understanding of management’s expectations surrounding results, we provide
our financial outlook on our expected operating and financial results for future periods comprised of forward-looking statements subject to
certain risks and uncertainties. Any factor that negatively impacts these selling seasons could have an adverse and disproportionate effect on
our results of operations for the entire year.
Additionally, factors such as results differing from our outlook, changes in sales and operating income, changes in our market valuations,
performance results for the general retail industry, news or announcements by us or our industry competitors or changes in analysts’
recommendations may cause volatility in the price of our common stock and our shareholder returns.
A downturn in economic conditions, currency fluctuations, inflation, increased unemployment and bankruptcy rates, changes in
fiscal stimulus and other external market factors has had and could have a significant adverse effect on our business and stock
price.
During economic downturns, including those resulting from the impacts of COVID-19, fewer customers may shop as these purchases may be
seen as discretionary, and those who do shop may limit the amount of their purchases. Any reduced demand or changes in customer
purchasing behavior may lead to lower sales, higher markdowns and an overly promotional environment or increased marketing and
promotional spending.
Our stores located in shopping centers and malls have been and may be affected by consumer traffic at shopping centers and
malls.
The majority of our stores are located within shopping centers and malls and may benefit from the abilities that we and other anchor tenants
have to generate consumer traffic. A decline in shopping center traffic in favor of ecommerce, the development of new shopping centers and
malls, the lack of availability of favorable locations within existing or new shopping centers and malls, the success of individual shopping
centers and malls and the success or failure of other anchor tenants have impacted and may impact our ability in the future to maintain or
grow our business, as well as our ability to open new stores, which could have an adverse effect on our financial condition or results of
operations.
Nordstrom, Inc. and subsidiaries 17
Table of Contents
The results from our credit card operations could be adversely affected by changes in market conditions or laws.
Revenues earned under our program agreement with TD are indirectly subject to economic and market conditions that are beyond our
control, including, but not limited to, interest rates, consumer credit availability, demand for credit, consumer debt levels, payment patterns,
delinquency rates, frequency of fee waivers, frequency or volume of governmental stimulus, personal bankruptcy rates, employment trends,
laws and other factors. Additionally, changes in net sales partially translate to program agreement revenues. Changes in economic, market or
regulatory conditions or customer behavior, or changes in our mix of sales and program agreement revenues, could impact our revenues and
profitability.
Our business and operations could be materially and adversely affected by severe weather patterns, climate change, natural
disasters, widespread pandemics, epidemics, civil unrest and other natural or man-made economic, political or environmental
disruptions.
Disruptions, and government responses to any disruption, could cause, among other things, a decrease in consumer spending that would
negatively impact our sales, declines in traffic in urban centers, staffing shortages in our Supply Chain Network facilities, stores or corporate
offices, interruptions in the flow of merchandise to our stores, disruptions in the operations of our merchandise vendors or property
developers, increased costs and a negative impact on our reputation and long-term growth plans, and may vary based on the length and
severity of the disruption. We have a significant amount of our total sales, stores and square footage on the west coast of the United States,
particularly in California, where we have experienced earthquakes, wildfires and power outages and shortages that increase our exposure to
any market-disrupting conditions in this region.
LEGAL AND REGULATORY RISKS
We are subject to certain laws, litigation, regulatory matters and ethical standards, and compliance or failure to comply with or
adequately address developments as they arise could adversely affect our reputation and operations.
Our policies, procedures and practices and the technology we implement are intended to comply with applicable federal, state, local and
foreign laws, tariffs, rules and regulations, as well as responsible business, social and environmental practices, all of which may change from
time to time. Our and our vendors’ compliance with these requirements and/or changes to them may cause our business to be adversely
impacted, or even limit or restrict the activities of our business. In addition, if we fail to comply with applicable laws and regulations or
implement responsible business, social, environmental and supply chain practices, we could be subject to damage to our reputation, class
action lawsuits, regulatory investigations, legal and settlement costs, charges and payments, civil and criminal liability, increased cost of
regulatory compliance, losing our ability to accept credit and debit card payments from our customers, restatements of our financial
statements, disruption of our business and loss of customers. New and emerging privacy and data protection laws may increase compliance
expenses and limit business opportunities and strategic initiatives, including customer engagement. Any required changes to our
employment practices could result in the loss of employees, reduced sales, increased employment costs, low employee morale and harm to
our business and results of operations. In addition, political and economic factors could lead to unfavorable changes in federal, state and
foreign tax laws, which may affect our tax assets or liabilities and adversely affect our results of operations. We are also regularly involved in
various litigation matters that arise in the ordinary course of business. Litigation or regulatory developments could adversely affect our
business and financial condition.
Compliance with Section 404 of the Sarbanes-Oxley Act of 2002 requires management assessments of the effectiveness of our internal
controls over financial reporting through documenting, testing, monitoring and enhancement of internal control over financial reporting. If we
fail to implement or maintain adequate internal controls, we may not produce reliable financial reports or fail to prevent or detect financial
fraud, which may adversely affect our financial position, investor confidence or our stock price.
Changes to accounting rules and regulations could affect our financial results or financial condition.
Accounting principles and related pronouncements, implementation guidelines and interpretations with regard to a wide variety of accounting
matters that are relevant to our business, including, but not limited to, revenue recognition, inventory valuation, long-lived asset recoverability
and income taxes, are highly complex and involve subjective assumptions, estimates and judgments. Changes in these rules and
regulations, changes in our interpretation or our misapplication of the rules or regulations, changes in accounting policies or changes in
underlying assumptions, estimates or judgments could adversely affect our financial performance or financial position.
18
Table of Contents
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
(Square footage amounts in thousands)
The following table summarizes the Supply Chain Network and retail locations we own or lease and the total square footage by category as
of January 29, 2022:
Number of locations
Leased buildings on leased land
Owned buildings on leased land
Owned buildings on owned land
Partly owned and partly leased
Total
Supply Chain
Network
3
—
8
—
11
Nordstrom
33
55
24
2
114
Nordstrom Rack
241
—
1
—
242
Total square footage
15,096
10,092
8,250
544
33,982
The following table summarizes our Supply Chain Network and retail store count and square footage activity:
Fiscal year
Total, beginning of year
Openings1:
Supply Chain Network
Nordstrom
Nordstrom Rack
Closures
Total, end of year
Relocations and other1
Count
2021
369
2020
390
Square footage
2021
34,080
2020
35,632
—
—
1
(3)
367
1
3
—
(25)
369
(7)
—
29
(120)
33,982
1,000
23
—
(2,575)
34,080
—
2
(7)
(11)
1 Openings’ square footage include adjustments due to relocations, remodels or changes in lease-term square footage.
Nordstrom, Inc. and subsidiaries 19
Table of Contents
The following table lists our Supply Chain Network and retail store count and square footage by state/province as of January 29, 2022:
Supply Chain Network
Square
Count
Footage
U.S.
Alabama
Alaska
Arizona
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Missouri
Nevada
New Jersey
New Mexico
New York
North Carolina
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
Tennessee
Texas
Utah
Virginia
Washington
Washington D.C.
Wisconsin
Canada
Alberta
British Columbia
Ontario
Total
Nordstrom
Count
Square
Footage
Nordstrom Rack
Square
Count
Footage
Count
Square
Footage
—
—
—
5
—
—
—
1
—
—
—
—
—
2
—
—
—
—
1
—
—
—
—
—
—
—
—
—
—
—
1
1
—
—
—
—
—
—
—
—
—
—
—
—
2,876
—
—
—
221
—
—
—
—
—
1,529
—
—
—
—
451
—
—
—
—
—
—
—
—
—
—
—
374
976
—
—
—
—
—
—
—
—
—
—
—
1
28
2
2
1
6
2
1
—
4
1
—
1
—
—
—
3
4
2
2
2
1
4
—
5
2
3
—
2
2
—
—
1
8
2
2
6
—
1
—
—
235
4,051
387
341
127
1,031
383
195
—
947
134
—
219
—
—
—
603
595
430
380
342
207
817
—
838
300
549
—
363
381
—
—
145
1,413
277
452
1,270
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