Nordstrom 2011 Annual Report Download - page 6

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6
WEBSITE ACCESS
Our website address is www.nordstrom.com. We make available free of charge on or through our website our annual and quarterly reports on Form
10-K and 10-Q (including related filings in eXtensible Business Reporting Language (“XBRL”) format), current reports on Form 8-K, proxy statements,
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 Securities Exchange Act of 1934 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 through our website.
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 Codes of Business Conduct and Ethics for our employees, officers and
directors (“Codes of Ethics”) and Corporate Governance Guidelines. We have posted on our website our Codes of Ethics, our Corporate Governance
Guidelines and our Committee Charters for the Audit, Compensation, Corporate Governance and Nominating, and Finance Committees. Any
amendments and waivers to these will also be available on our website.
These items are also available in print to any person, without charge, upon request to:
Nordstrom Investor Relations
PO Box 2737
Seattle, Washington 98111-2737
(206) 233-6564
[email protected]
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 are not the only risks
we face.
ECONOMIC CONDITIONS
We sell high-quality apparel, shoes, cosmetics and accessories, which many consumers consider to be discretionary items. During economic
downturns, fewer customers may shop in our stores and on our website, and those who do shop may limit the amount of their purchases, all of which
may lead to lower sales, higher markdowns and increased marketing and promotional spending in response to lower demand. Deterioration of
economic conditions and consumer confidence may also adversely affect our credit customers’ payment patterns and delinquency rates, increasing
our bad debt expense. Some macroeconomic indicators suggest that a modest economic recovery has begun, however key factors such as
employment levels, consumer credit and housing market conditions remain weak. A sluggish economic recovery or a renewed downturn could have a
significant adverse effect on our business.
IMPACT OF COMPETITIVE MARKET FORCES
The fashion specialty retail industry is highly competitive. We compete with other national, regional, local and online retailers that may carry similar
lines of merchandise, including department stores, specialty stores, off-price stores, boutiques and Internet businesses. Online retail shopping is
rapidly evolving and we expect competition in the e-commerce market to intensify in the future as the Internet facilitates competitive entry and
comparison shopping. If we are unable to remain competitive in the key areas of customer service, the shopping experience across all channels,
fashion newness, quality of products, depth of selection, store environment and location, we may lose market share to our competitors and our sales
and profitability could suffer.
We believe owning our credit business allows us to fully integrate our loyalty program and drive more sales. Many of our competitors also offer
general-purpose credit card products with a variety of loyalty programs. Our Credit segment faces competition from other retailers, large banks and
other credit card companies, some of which have substantial financial resources. In addition, there is intense competition for cardholders with
“prime” credit ratings who make up a significant portion of our credit portfolio. If we do not effectively anticipate or respond to the competitive
banking and credit card environment, we could lose market share to our competitors, which could have an adverse effect on our credit business.