Nordstrom, Inc., as of January 31, 2001, operated 77 large specialty stores in the United States, selling a wide selection of apparel, shoes and accessories for women, men and children. The Company also operated 37 stores under the name Nordstrom Rack and one clearance store. The Nordstrom Rack stores purchase merchandise directly from manufacturers, as well as serving, in part, as outlets for clearance merchandise from the Company's large specialty stores. The Company also operated two freestanding shoe stores located in Hawaii, and three Specialty Boutiques in New York and California under the name Faconnable. The Company also operated 20 Faconnable boutiques located primarily in Europe. Faconnable is a wholesaler and retailer of high-quality men's and women's apparel and accessories.
Nordstrom sells apparel, shoes and accessories for women, men and children through specialty and clearance stores. The Company also operates a men's boutique, and a direct sales division. For the three months ended 4/30/01, sales increased 6% to $1.22
billion. Net income decreased 25% to $24.8 million. Revenues reflect the opening of seven full-line stores and 12 Nordstrom Rack stores. Net income was offset by a lower gross profit due to higher buying expenses "There's the true tale of the customer in Alaska who returned a pair of tires, even though the Seattle-based retailer has never sold tires or other auto parts. Once the company sent a new package of smoked salmon to a customer after executives couldn't answer her question about whether the vacuum-sealed package she bought a year ago was still good.
So Nordstrom Inc.'s announcement last week to combine its catalog and Internet operations into a new online division poses a challenge: Can Nordstrom deliver its hallmark service in the relatively human-free zone of e-commerce?"Ã¯Â¿Â½ Matt Beer, San Francisco Examiner As you view the Nordstrom.com website...