On Dec. 3, Nordstrom will be honored as Retailer of the Year at the 39th annual FN Achievement Awards. Below is an article from the magazine’s Dec. 1 print issue about the retailer’s monumental year.
It’s been a game-changing year for Nordstrom and its visionary family leaders.
In May, brothers Erik and Pete Nordstrom and their cousin Jamie, along with El Puerto de Liverpool, finalized their $6.25 billion, all-cash acquisition of the department store chain.
With the completion of the transaction, the Nordstroms now have a 50.1 percent controlling stake in the company, and Liverpool has a 49.9 percent stake. Nordstrom is based in Seattle, while Liverpool is based in Mexico City.
Pete Nordstrom, who was elevated from president and chief brand officer to co-chief executive officer after the go-private deal closed, told FN that being a public or private company “doesn’t mean much at all” from a customer perspective. But for the company, the way ahead is now clearer. “It’s simplified the agenda and helped to create more clarity and focus,” Nordstrom said.
Wall Street has long taken a dim view of Nordstrom and most department stores. By taking their business private, the Nordstroms can adopt a longer-term outlook and make necessary investments and changes away from the scrutiny of public markets.
“When you’re a public company, your scoreboard is your stock price, and that’s not entirely within our control,” Pete Nordstrom said at the WWD Apparel and Retail Summit in October (FN is the sister publication to WWD). “A lot of that has to do with the sector you are in, the multiple, and all that stuff.”
Erik and Pete Nordstrom at the 2025 WWD Apparel & Retail CEO Summit.
The stock price, he added, “felt disconnected from our results at a certain point. That was kind of a morale-buster for our team. We could have a decent quarter, and the stock would go down.” Without the pressures of Wall Street, “our whole focus now is the success of the business and how we take care of customers. We went public for a reason in 1971 and that was the right thing to do at that time. But we’re a different company now with a different set of circumstances.”
But generally, a privately held Nordstrom isn’t expected to diverge much from its previously public priorities, notably its aggressive expansion of the Rack off-price chain, pursuit of greater digital growth and much-needed comp gains at the Nordstrom upscale department stores.
“As online shopping has become more important, as well as our Rack expansion, it’s taken some pressure off of having a full-line store in every single market,” Nordstrom told FN. “We do about 40 percent of our business online, but physical retail remains super important to who we are.”
Nordstrom NYC’s women’s shoe area on the lower level.
Courtesy of Nordstrom
Founded in 1901 as a shoe retailer, the company now operates more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations.
“The fact that we were a shoe business for the first 65 years or so of our existence informs everything about our legacy, our heritage and where all our values came from,” Nordstrom said. “When I started working here, my dad put me to work in the shoe department because he wanted me to learn the essence of our business. And he was right. It really touched on what the whole business was about. I do believe that shoes have been a big point of differentiation for us in our industry, and certainly with customers. We’ve got a good reputation for shoes, and customers value that.”
As a new chapter unfolds, the department store is emphasizing its footwear roots even further with the “Make Room for Shoes” initiative, announced last year. It’s come to life through monthly partnerships with top brands, including Adidas, On, Tory Burch, Sperry, Ugg, Birkenstock, Stuart Weitzman, Sam Edelman, Larroudé, Dolce Vita, Reformation and more.
Shoes have also been a major focus inside The Corner in Nordstrom NYC, with New Balance and Nike Running both appearing in the high-profile pop-up space in 2025. That followed on the heels of a successful pop-up with Jordan Brand late last year, celebrating women’s streetwear and sneaker culture.
The Corner pop-up with New Balance.
Courtesy of Nordstrom
“This initiative puts a focus on us creating newness and discovery around footwear and giving people a reason to come in and buy something new,” Nordstrom maintained. “It’s putting an ambitious spirit of intent around what it is we’re trying to do around shoes and then backing that up with something that’s worthwhile for customers.”
This holiday season, Nordstrom is aiming for the stores to become a “more meaningful” destination for gift giving.
“This was not by design, but over time, we had largely been known as a great place for self-purchasing for customers,” the co-CEO said. “But if we’re going to be successful during holiday time, we also must be well-regarded and top-of-mind for gifting. So now, in all our stores, we have gift hubs where we’ve tried to focus on things that are, in fact, good gifts. We’ve been intentional about that. I think we’ve taken a big step forward this year, and our success in the fourth quarter will have a lot to do with the progress we’ve made on being more top-of-mind for customers around gifts. So, we’re anxious to see how that plays out.”
For 39 years, the annual FN Achievement Awards — often called the “Shoe Oscars” — have celebrated the style stars, best brand stories, ardent philanthropists, emerging talents and industry veterans. The 2025 event is supported by Caleres, Listrak, Nordstrom, Skechers, Vibram and Wolverine Worldwide.
