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While other department stores have struggled to survive the shift toward e-commerce and off-price retail, Nordstrom has managed something genuinely rare: an actual comeback. Freshly taken private by its founding family and posting real revenue growth, Nordstrom is proving that legacy retail can still work when it’s run the right way. Here’s a full breakdown of Nordstrom’s history, its recent transformation, and whether it’s still worth shopping.
What Is Nordstrom?
Nordstrom is an American luxury department store chain founded in 1901 in Seattle, Washington, originally launched as a shoe store called Wallin & Nordstrom by Swedish immigrant John W. Nordstrom and Seattle shoemaker Carl Wallin. John Nordstrom funded the original venture with money he’d earned prospecting during the Klondike Gold Rush, a detail that’s become part of the company’s well-known founding story. The company expanded into a full department store format in the 1960s and went public in 1971, remaining under Nordstrom family leadership throughout its entire public history.
In one of the most significant moves in the company’s recent history, Nordstrom returned to private ownership in 2025 after a $6.25 billion deal between the Nordstrom family and El Puerto de Liverpool, a major Mexican retail and real estate company. The Nordstrom family now holds a controlling 50.1% stake, with brothers Erik and Pete Nordstrom, great-grandsons of founder John Nordstrom, serving as co-CEOs. This marked the family’s second attempt at going private, after an earlier effort in 2017 fell through. Freed from the short-term pressures of Wall Street, Nordstrom has since reported meaningful improvement, with 2025 revenue rising 7% to $15.9 billion, surpassing pre-pandemic highs and outperforming struggling competitors like Saks Global and Neiman Marcus.
What Makes Nordstrom Different?
- Long-standing family ownership and leadership — Nordstrom has been led by descendants of its founder for more than a century, giving the company a level of continuity uncommon among major US retailers
- Renowned customer service reputation — Nordstrom has built a long-standing reputation for exceptional in-store service and a famously flexible returns policy
- Full-price and off-price channels — the company operates both full-price Nordstrom stores and the discount-focused Nordstrom Rack, giving shoppers multiple price points under one company
- Curated multi-brand selection — rather than manufacturing its own products exclusively, Nordstrom curates a wide range of designer, contemporary, and emerging brands across categories
- Post-privatization reinvestment — since returning to private ownership, Nordstrom has invested heavily in store upgrades, improved inventory management, and more personalized marketing systems
What Does Nordstrom Sell?
Women’s Apparel & Accessories
A vast selection spanning designer, contemporary, and everyday brands, including clothing, handbags, jewelry, and accessories across a wide range of price points.
Men’s Apparel & Accessories
Suiting, casualwear, footwear, and accessories from both established and emerging menswear brands.
Shoes
One of Nordstrom’s founding categories and still a core strength, offering an extensive range of designer and everyday footwear for men, women, and children.
Beauty
A wide beauty hall featuring prestige skincare, makeup, and fragrance brands, often available for in-person testing at physical Nordstrom locations.
Kids’ & Baby
Children’s clothing, shoes, and accessories rounding out Nordstrom’s family-focused offering.
Home
Home goods and décor items, extending Nordstrom’s curated retail approach beyond apparel and accessories.
Nordstrom Rack
The company’s off-price retail division, offering discounted designer and brand-name merchandise at lower price points than full-price Nordstrom stores.
Is Nordstrom Good Quality?
Because Nordstrom operates as a curated multi-brand retailer rather than a single manufacturer, product quality varies primarily by the specific brand being purchased rather than Nordstrom itself. That said, the company’s curation process and long-standing relationships with both established luxury houses and emerging designers have contributed to its reputation as a trusted destination for higher-quality apparel, footwear, and beauty products across a wide range of price points.
Nordstrom’s renowned customer service and flexible return policies have also long been central to its reputation, giving shoppers added confidence when trying new brands or higher-investment pieces. Since going private, the company has reinvested significantly in both store experience and operational systems, which industry analysts have pointed to as a meaningful factor in its recent sales recovery and improved customer experience.
Nordstrom’s Recent Turnaround: What Changed?
Nordstrom’s return to private ownership in 2025 has been widely credited with giving the company more flexibility to make long-term investments without the pressure public companies face to prioritize short-term shareholder returns. Freed from Wall Street’s quarterly scrutiny, the company has been able to invest more heavily in store improvements, back-end systems like merged customer databases for more personalized marketing, and expanded inventory strategies. That reinvestment coincided with real results: 2025 revenue grew meaningfully year-over-year, recovering past pre-pandemic levels, while several competing department store chains and luxury retailers faced continued struggles or even bankruptcy filings during the same period.
How Does Nordstrom Compare to Other Department Stores?
| Feature | Nordstrom | Typical Traditional Department Store |
|---|---|---|
| Founded | 1901, Seattle, Washington | Varies |
| Ownership | Privately held by Nordstrom family + El Puerto de Liverpool | Often publicly traded |
| Customer service reputation | Widely regarded as industry-leading | Varies |
| Price tiers | Full-price (Nordstrom) + off-price (Nordstrom Rack) | Varies |
| Recent performance | Revenue growth, store reinvestment | Many competitors facing decline or bankruptcy |
| Beauty & designer selection | Extensive, curated multi-brand | Varies |
Tips for Shopping Nordstrom
- Check Nordstrom Rack for the same brands at lower price points if you’re budget-conscious
- Take advantage of the flexible return policy when trying new brands or sizes, particularly for higher-investment pieces
- Visit the beauty hall in person if possible, since testing prestige beauty products before buying can be especially valuable
- Look for seasonal sales events, since Nordstrom runs well-known promotional periods throughout the year
- Sign up for the Nordy Club loyalty program to earn points and access member-exclusive perks and early sale access
Final Verdict: Is Nordstrom Worth Shopping?
Nordstrom has proven, more clearly than perhaps any other major American department store in recent memory, that a genuine comeback is possible with the right strategy and ownership structure. With more than a century of family leadership, a renewed private-ownership strategy that’s already delivering real results, and a continued reputation for strong customer service and curated brand selection, Nordstrom remains one of the most trusted destinations in American retail. Whether you’re shopping full-price designer pieces or hunting for deals at Nordstrom Rack, Nordstrom is well worth your attention in 2026.
Frequently Asked Questions
When was Nordstrom founded? Nordstrom was founded in 1901 in Seattle, Washington, originally as a shoe store called Wallin & Nordstrom.
Is Nordstrom still owned by the Nordstrom family? Yes, the Nordstrom family holds a controlling 50.1% stake in the company following its return to private ownership in 2025, in partnership with Mexican retailer El Puerto de Liverpool.
Is Nordstrom a public or private company? Nordstrom is a private company as of 2025, having delisted from the New York Stock Exchange after the Nordstrom family and El Puerto de Liverpool completed a $6.25 billion take-private deal.
What is the difference between Nordstrom and Nordstrom Rack? Nordstrom operates full-price stores offering designer and brand-name merchandise, while Nordstrom Rack is the company’s off-price division offering discounted versions of similar brands at lower price points.
Is Nordstrom doing well financially? Yes, Nordstrom reported 2025 revenue of $15.9 billion, a 7% increase year-over-year, surpassing pre-pandemic sales levels amid a broader struggle among competing department stores.
Who runs Nordstrom? Nordstrom is led by co-CEOs Erik and Pete Nordstrom, great-grandsons of founder John W. Nordstrom.
