Nordstrom 2005 Annual Report Download - page 13

Nordstrom, Inc. and subsidiaries 5
In order to offer merchandise that our customer will desire, we purchase merchandise from a wide variety of high-quality suppliers. In 2005,
our ten largest suppliers accounted for approximately 21% of our merchandise purchases. We also have arrangements with agents and contract
manufacturers to produce our private label merchandise. We do not have long-term purchase commitments or arrangements with any of our
merchandise suppliers. Our suppliers include domestic and foreign businesses. We expect our suppliers to meet our “Nordstrom Partnership:
Standards and Business Practice Guidelines,” which address our standards for matters such as law, labor, health and safety, and environment.
COMPETITIVE CONDITIONS
All segments of our business are highly competitive. Each of our stores competes with other national, regional and local retail establishments that
may carry similar lines of merchandise, including department stores, specialty stores, boutiques, mail order and Internet businesses. Our specific
competitors vary from market to market. We believe the principal methods of competing in our industry include customer service, store
environment, quality of product, fashion, depth of selection and location.
EMPLOYEES
During 2005, we regularly employed on a full or part-time basis an average of 51,400 employees. Due to the seasonal nature of our business,
employment increased to approximately 55,400 employees in July 2005 and 56,000 in December 2005.
CAUTIONARY STATEMENT
Certain statements in this Annual Report on Form 10-K contain “forward-looking” statements (as defined in the Private Securities Litigation Reform
Act of 1995) that involve risks and uncertainties, including anticipated results, store openings and trends in our operations. Actual future results
and trends may differ materially from historical results or current expectations depending upon various factors including those discussed below
and elsewhere in this Annual Report on Form 10-K, particularly in Item 1A under the heading “Risk Factors:” the impact of economic and competitive
market forces, terrorist activity or war may impact our customers and the retail industry, our ability to predict fashion trends, consumer apparel
buying patterns, trends in personal bankruptcies and bad debt write-offs, changes in interest rates, employee relations, our ability to continue and
control our expansion, remodel and investment plans, changes in government or regulatory requirements, our ability to control costs, weather
conditions and hazards of nature.
These and other factors could affect our financial results and cause actual results to differ materially from those contained in any forward-looking
statements we may make. As a result, while we believe there is a reasonable basis for the forward-looking statements, you should not place undue
reliance on those statements. We undertake no obligation to update or revise any forward-looking statements to reflect subsequent events, new
information or future circumstances.
SEC FILINGS
We file annual, quarterly and current reports, proxy statements and other documents with the Securities and Exchange Commission (“SEC”).
All material we file with the SEC is publicly available at the SEC’s Public Reference Room at 450 Fifth Street, NW, Washington, DC 20549. You may obtain
information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. In addition, the SEC maintains an Internet Web site
at www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC.
WEB SITE ACCESS
Our Internet Web site address is www.nordstrom.com. We make available free of charge on or through our Internet Web site our annual report on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, statements of changes in beneficial ownership of securities on Form 4 and
amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we
electronically file the report with or furnish it to the SEC. Interested parties may also access a Webcast of quarterly earnings conference calls and
other financial events over our Internet Web site.
CORPORATE GOVERNANCE
We have a long-standing commitment to upholding a high level of ethical standards. In addition, as required by the listing standards of the New
York Stock Exchange (“NYSE”) and the rules of the SEC, we have adopted a Code of Business Conduct and Ethics (“Code of Ethics”) and Corporate
Governance Guidelines. We have posted on our Web site our Code of Ethics, our Corporate Governance Guidelines, and our Committee Charters for
the Audit, Compensation, Corporate Governance and Nominating, Executive, and Finance committees. These items are also available in print to any
shareholder upon request to:
Nordstrom, Inc. Investor Relations
P.O. Box 2737
Seattle, Washington 98111
[phone]
[e-mail]
Item 1A. Risk Factors.
Our business faces many risks. We believe the risks described below outline the items of most concern to us. However, these risks may not be
the only ones we face. Additional risks and uncertainties, not presently known to us or that we currently deem immaterial, may also impair our
business operations.