Nordstrom Co-CEO on Reinventing a 125-Year-Old Retail Giant #Nordstrom #shopping

Fortune Magazine
Fortune MagazineMar 16, 2026

Why It Matters

Nordstrom’s pivot demonstrates that legacy retailers can regain momentum by blending physical expansion with digital integration, offering a blueprint for profitability in a disrupted market.

Key Takeaways

  • Nordstrom co-CEOs stress personal accountability for company performance
  • Department store model must evolve with online‑store integration
  • Opening 22 new Rack stores in 2025 expands footprint
  • Total sales hit $15.9 billion, a 7% year‑over‑year rise
  • Leadership emphasizes agility, curiosity, and thoughtful adaptation to change

Summary

Nordstrom’s co‑CEOs, Pete and Eric Nordstrom, outlined how the 125‑year‑old retailer is reinventing itself amid industry upheaval, emphasizing personal accountability and a renewed strategic focus.

They argue the traditional department‑store formula must evolve, leveraging a symbiotic relationship between brick‑and‑mortar locations and digital channels. The company plans to open 22 new Rack stores in 2025, bringing the total to nearly 300, while total sales rose to $15.9 billion—a 7% increase and an all‑time high.

“If it wasn’t going to work, it was all us,” the co‑CEOs said, underscoring a culture of responsibility. They also reflected on past retail practices—“You bought stuff from wholesalers…people came and they bought it”—and noted the need for agility, curiosity, and thoughtful adaptation.

The strategy signals a broader shift for legacy retailers, suggesting that disciplined expansion and integrated online‑offline experiences can revive growth, a crucial insight for investors and competitors watching the sector’s transformation.

Original Description

Nordstrom's decision to go private didn't just put control back in the family's hands—it also helped secure the company's success among the department store turmoil its competitors are facing. In this episode of Behind the Business, Fortune’s Phil Wahba goes inside the company's Manhattan flagship store to find out how they did it, and whether the success can last.
#retail #business #success #leadership
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