Accounting 601 Nordstrom Final Project

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BACKGROUND Nordstrom was founded in Seattle, Washington in 1901 as a shoe store. John W. Nordstrom partnered with Carl F. Wallin, who owned a shoe repair shop, and opened Wallin and Nordstrom, a shoe store that prided themselves on customer service and selection. Wallin retired in 1929 and sold his shares to the next generation of Nordstroms. Apparel did not debut in the stores until 1963. Nordstrom, as Nordstrom Best (NOBE) went public on the NASDAQ in 1971. A name change occurred in 1973 – Nordstrom – and the ticker was changed to JWN as a tribute to its founder John W. Nordstrom. JWN is now traded on the NYSE. Nordstrom has grown via expansion rather than the retail’s more commonplace method, that of acquisition. Currently, Nordstrom has 225 retail stores in the U.S. Their largest retail concentration is on the East and West Coasts. In 1993 Nordstrom entered the catalog market. Nordstrom’s chief competitors are Bloomingdales, Lord & Taylor, Von Maur, Neiman Marcus and Saks 5th Avenue. ANTICIPATED FUTURE GROWTH The recent downturn of the economy affected all segments of retail however the luxury segment, of which Nordstrom and its competitors are a part, was much more resilient. The worst year appeared to be 2009 with the luxury segment rebounding in 2010 and 2011. The following is a comparison of 2011 sales growth of Nordstrom as compared to several of its competitors: Nordstrom 7.2% Neiman Marcus 7.5% Saks 5th Avenue 6.4% Bloomingdales 5.4% Nordstrom, in its most recent Annual Report, anticipates its same-store sales to be 4 to 6 percent but sets a corporate goal of high single digit Total Sales Growth. Total sales growth is achieved through the expansion of retail space and increased online sales. Same-store sales are sales growth

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