Nordstrom 2010 Annual Report Download - page 3

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2010 was a terrific year that exceeded our expectations.
Our team increased same-store sales 8.1 percent in 2010 following a 4.2 percent decrease in 2009, and
achieved solid earnings improvement over the prior year. We also increased sales per square foot to
$397, which is now approaching pre-recession levels, though still below our peak of $435 from 2007.
We turned in some of our all-time best performances on a number of fronts in 2010, including:
• Record sales of $9.31 billion.
• The fastest inventory turn we’ve ever had at 5.56, reflective of our ability to flow
fresh product into our stores.
• Regular-price selling that is back to historically high levels, and shows customers are
responding to the newness, quality and value of our fashion offering.
Merchandising is a core strength and a big reason for our success. Our buyers have done a great job
of delivering new fashion that our customers want. Our team demonstrated thoughtful planning, sharp
editing and disciplined execution throughout the year. Their hard work helped us continue to grow sales
faster than inventory, maintain the balance of our offering and have the flexibility we need to quickly
respond based on how the customer is shopping.
We crossed another milestone in 2010, surpassing 200 total stores. During the year, we opened three
new Nordstrom full-line stores and 17 Nordstrom Racks. The Rack is a great way for us to meet new
customers and delivers a high return on investment. We look forward to further growing our full-line
store and Rack store presence in the coming year.
Last year we redefined the ways we serve the customer in our stores. For example, we unveiled Wedding
Suites in 14 of our stores starting last November and will open four more in 2011. We also expanded our
complimentary Personal Stylist program, going from 459 stylists at the start of 2010 to 777 stylists by
the end of the year, with plans to further grow this service at all our full-line stores. Wedding Suites and
Dear customers, employees and shareholders,