Nordstrom Announces It Will Go Private As Namesake Family Retakes Control Of $6.25 Billion Retailer

Topline

The Seattle-based department store chain Nordstrom announced Monday it agreed to a transaction which will give the Nordstrom family a controlling stake in the retailer, which will go private after a 53-year stint as a public company as the fourth generation of Nordstroms retake control.

Key Facts

Who Is The Nordstrom Family?

John W. Nordstrom founded the department store chain in 1901. The Nordstrom family was worth $3.8 billion in 2015, its most recent appearance on Forbes’ list of America’s wealthiest families. Erik and Peter Nordstrom are the company’s chief executive and president, respectively, but a dozen of their relatives are a part of the acquisition, including their aunt Anne Gittinger and cousin Jamie Nordstrom, the company’s chief merchandising officer.

Key Background

Nordstrom said in September it received a bid from the Nordstrom family to take the company private, with terms of the deal announced Monday closely matching reports this fall. The company operated 351 brick-and-mortar stores across its flagship Nordstrom brand, its small-footprint Nordstrom Local and discount Nordstrom Rack line.

Tangent

Nordstrom’s full-year revenue peaked at $15.9 billion in 2019 and net profit at $735 million in 2014, with consensus analyst forecasts calling for $14.8 billion in revenue and a $324 million net profit in 2024, according to FactSet. The stagnating financial growth, which came as many brick-and-mortar first retailers wobbled, led to an extended period of malaise for Nordstrom shareholders. Nordstrom stock has returned -56% to investors over the last decade, far worse than the benchmark S&P 500’s 242% return, including reinvested dividends. Longtime Nordstrom rival Macy’s has provided a -61% return over the timeframe.

Further Reading