Nordstrom: Focusing on a Culture of Service

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Nordstrom was started as a shoe store called Wallin & Nordstrom in Seattle in 1901 by John W Nordstrom (John) and Carl Wallin. Nordstrom invested US$5,000 in the company while Wallin invested US$ 1,000. They bought shoes for US$ 3500. The first day sales were US$ 12.50. The annual sales reached US$ 47,000 in 1905. In 1915, John's sons started helping him in the store. The founders retired after opening the second store in Northeast Seattle in 1923. In 1929, Carl Wallin sold his stake to John’s sons, Everett and Elmer. The brothers faced a major crisis during the 1930s due to the Great Depression.

In 1932, John’s youngest son, Lloyd, joined the business as a marketing specialist. When the brothers took over the business, they renovated the stores, increased the display and merchandising area, carpeted the floor, and improved lighting. The upholstery was changed and comfortable chairs were installed. In 1937, a new large store was started in the Fifth Avenue. At that time the three brothers decided that the posts of president, vice president and secretary / treasurer rotated among them every two years. The goal of the second generation of Nordstroms was to sell shoes to everyone in town. To achieve that, they stocked shoes in different sizes, styles, brands, and colors.

During World War II, merchandise was in short supply as the leather and footwear were supplied to the military. Retailers could sell shoes only as per a quota. Even in such a situation, Nordstrom sold all the shoes in its stock at their original price. The brothers travelled across the country to procure shoes and also persuaded salesmen to sell them extra stock. During the 1950s, Nordstrom opened stores in Portland and Northgate mall, the first shopping mall in the US. In 1959, the store at Pike Street was remodeled and reopened. The store, spread over four floors, stocked 100,000 pairs of shoes and was the largest shoe store in the country. Nordstrom also convinced manufacturers to supply shoes in odd sizes.

By the early 1960s, Nordstrom became the largest independent shoe chain in the US, with eight stores in Washington and Seattle. In 1963, it acquired Best Apparel, a Seattle-based clothing store. Soon, Nordstrom added children’s clothes and sportswear to its clothing line. In 1965, a store that housed both apparel and shoes was opened in Northgate Shopping Center in Seattle. In 1966, a complete line of men’s suits was added to the collection. In the same year, it acquired a fashion retailer based in Oregon, Nicholas Ungar, and the company was renamed Nordstrom Best. By 1970, the third generation – Bruce (Everett’s son), James, John (Elmer’s sons) and Jack McMillan (Lloyd’s son-in-law) took over. In 1971, the company went public and was formally renamed Nordstrom Inc. In 1973, the company’s sales crossed the US$ 100 million milestone. During the year, the company opened Nordstrom Rack , as a clearance outlet for Nordstrom stores. In 1973, the company’s name was formally changed to Nordstrom, Incorporated....

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