Nordstrom 2011 Annual Report Download - page 9

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Nordstrom, Inc. and subsidiaries 9
CONSUMER CREDIT
Our credit card operations help drive sales in our stores, allow our stores to avoid third-party transaction fees and generate additional revenues
from extending credit. Our credit card revenues and profitability are subject in large part to economic and market conditions that are beyond our
control, including, but not limited to, interest rates, consumer credit availability, consumer debt levels, unemployment trends, laws and regulations
and other factors. Elevated levels of unemployment have historically corresponded with increased credit card delinquencies and write-offs, which
may continue in the future. Further, these economic conditions could impair our ability to assess the creditworthiness of our customers if the
criteria and/or models we use to underwrite and manage our customers become less predictive of future losses. This could cause our losses to
rise and have a negative impact on our results of operations.
BUSINESS CONTINUITY
Our business and operations could be materially and adversely affected by supply chain disruptions, severe weather patterns, natural disasters,
widespread pandemics and other natural or man-made disruptions. We derive a significant amount of our total sales from stores located on the west
and east coasts of the United States, particularly in California, which increases our exposure to conditions in these regions. These disruptions could
cause, among other things, a decrease in consumer spending that would negatively impact our sales; staffing shortages in our stores, distribution
centers or corporate offices; interruptions in the flow of merchandise to our stores; disruptions in the operations of our merchandise vendors or
property developers; increased costs; and a negative impact on our reputation and long-term growth plans.
ANTI-TAKEOVER PROVISIONS
We are incorporated in the state of Washington and subject to Washington state law. Some provisions of Washington state law could interfere with or
restrict takeover bids or other change-in-control events affecting us. For example, one provision prohibits us, except under specified circumstances,
from engaging in any significant business transaction with any shareholder who owns 10% or more of our common stock (an “acquiring person”) for
a period of five years following the time that the shareholder became an acquiring person.
Item 1B. Unresolved Staff Comments.
None.