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As a customer-driven business, we aspire to continually improve the level of service we offer. Customers have
always had choices, but today they have more options, better information and are in a stronger position to dictate
their shopping experience. At the same time, the pace of change is accelerating and expectations around service
continue to rise. this changing landscape represents a terrific opportunity for Nordstrom, as it closely aligns with
our culture of service and ongoing efforts to take care of customers on their terms.
2011 was a watershed year -- both in terms of our results and the strides we made toward our goal of becoming our
customers' retailer of choice. here are some of the highlights:
·Achievedanewrecordfornetsalesat$10.5billion,a12.7%increaseoverourprevioushighlastyear.
·Delivereda7.2%increaseinsame-storesales.
·IncreasedsalesinDirectby29.5%,whichisreflectiveofhowmanycustomerswanttoshopandthe
significant growth potential online.
·Surpassed$2.0billioninnetsalesforNordstromRack.
·Finishedtheyearwith$1.9billionincash,puttingusinastrongerpositiontocontinueinvesting
in the customer experience.
·Maintainedourhistoricallyhighlevelsforinventoryturnandregular-pricesellthrough--
both important measures of our success as merchants.
·Addedmorethan850,000newFashionRewards®members,bringingourtotalnumber
of active members to over 2.6 million.
We continue to believe that the service experience we offer our customers and the trust we seek to build with them
are the most important drivers of our financial success. As a result, we're investing more heavily to enhance this
experience, particularly through e-commerce, technology and personalization, as these are increasingly important
to the customer's definition of service. this is a multi-year journey, but we made significant progress over the past
year by building on the cornerstones of our customer-driven strategy.
the store experience
the foundation of our company is personalized service and the one-on-one interactions that take place with
customers every day in our stores. our stores remain critical to our service reputation and nothing can replace
the human connection that our salespeople create with customers. At the same time, we also recognize that our
customers value speed, convenience and a technology-enabled shopping experience.
our Personal Stylists are indicative of the relationships we want to have with our customers and set the example
for how to take care of all our customers' needs. In 2011 we made significant progress in connecting more of our
customers to our best salespeople. We completed the rollout of our Personal Stylist program to all our full-line
stores and nearly doubled the number of stylists over the previous year to more than 1,300 companywide.
In early 2011 we began offering e-receipts as an added convenience for our customers who prefer a paperless option.
We then introduced roughly 6,000 handheld devices with mobile checkout and inventory look-up functionality,
as well as approximately 1,300 tablets, to better enable our salespeople to take care of the customer anywhere
in the store. We're now in the process of introducing richer functionality and additional mobile capabilities for
the customer.
We're encouraged by our growth opportunities in existing and new markets, including our full-line store opening
just last month at City Creek Center in Salt lake City. It's also critical that our 117 full-line stores stay current and
relevant. We have a robust remodel schedule for 2012 and beyond to keep our full-line and rack stores up-to-date
and enhance the overall store experience.
"
the foundation of
our company is
personalized service ...
"