The Nordstrom dynasty: How wealthy heirs are still running the iconic American department store more than 100 years after it was founded on $13,000 in gold

Avery HartmansApr 13, 2023, 22:28 IST

Erik and Pete Nordstrom in 2012.Frank Franklin II/AP

Nordstrom was founded in 1901 by Swedish immigrant John W. Nordstrom, who used the money he made in the Alaska gold rush to start the company.
Over a century later, the fourth generation of Nordstroms is running the company: brothers Erik and Peter Nordstrom, who serve as CEO and president, respectively, of the department store chain.

John W. Nordstrom, a Swedish immigrant who arrived in the US in the late 1800s and headed to Alaska during the Klondike Gold Rush, founded Nordstrom. He made $13,000, which he used to open a shoe store with a friend, Carl Wallin.

Darron Cummings/AP

John W. Nordstrom, a Swedish immigrant who arrived in the US in the late 1800s and headed to Alaska during the Klondike Gold Rush, founded Nordstrom. He made $13,000, which he used to open a shoe store with a friend, Carl Wallin.

By the 1920s, the Wallin & Nordstrom brand had grown to two locations in Seattle, and John was ready to retire. He and Wallin sold their shares in the business to Nordstrom's sons, Everett and Elmer, with a third son, Lloyd, joining a few years later. A family business was born.

A Nordstrom shoe department in 1997.Greg Smith/CORBIS/Corbis via Getty Images

By the 1920s, the Wallin & Nordstrom brand had grown to two locations in Seattle, and John was ready to retire. He and Wallin sold their shares in the business to Nordstrom's sons, Everett and Elmer, with a third son, Lloyd, joining a few years later. A family business was born.

"The depression hit us in 1929, and for five years, we struggled with the store. Everett and I put in long hours, did janitorial work, trimmed windows and helped with our books," Elmer Nordstrom wrote in a letter to Nordstrom employees in the late 1990s, describing the Great Depression.

A Hooverville in Seattle in 1934. "Hoovervilles" were shantytowns of temporary homes during the Great Depression in the US.Getty Images

"The depression hit us in 1929, and for five years, we struggled with the store. Everett and I put in long hours, did janitorial work, trimmed windows and helped with our books," Elmer Nordstrom wrote in a letter to Nordstrom employees in the late 1990s, describing the Great Depression.

But Nordstrom hung on. By the early 1960s, it had become the nation's largest independent-shoe-store chain. The brothers began expanding the business by acquiring two local apparel retailers — women's apparel came first, and men's and children's clothing followed a few years later.

A Nordstrom store in 1997.Greg Smith/CORBIS/Corbis via Getty Images

But Nordstrom hung on. By the early 1960s, it had become the nation's largest independent-shoe-store chain. The brothers began expanding the business by acquiring two local apparel retailers — women's apparel came first, and men's and children's clothing followed a few years later.

The third generation of Nordstroms took over in 1968: Everett's son, Bruce; Elmer's sons, James and John; and Lloyd's son-in-law, Jack. This new branch of the family tree took the company public in 1971 and introduced an off-price division, Nordstrom Rack, in 1973.

Bruce Nordstrom.Getty Images

The third generation of Nordstroms took over in 1968: Everett's son, Bruce; Elmer's sons, James and John; and Lloyd's son-in-law, Jack. This new branch of the family tree took the company public in 1971 and introduced an off-price division, Nordstrom Rack, in 1973.

The Nordstroms spent the next two decades expanding the business, opening stores across the country from Alaska to Virginia. By this time, Everett and Lloyd Nordstrom had died, but Elmer Nordstrom lived to be 88. He was working in his office right up until his death in 1993.

A Nordstrom department store in southern California in 1998.Rolando Otero/Los Angeles Times via Getty Images

The Nordstroms spent the next two decades expanding the business, opening stores across the country from Alaska to Virginia. By this time, Everett and Lloyd Nordstrom had died, but Elmer Nordstrom lived to be 88. He was working in his office right up until his death in 1993.

In 1995, the third generation of Nordstroms retired as co-chairs of the business, handing the empire over to the next wave, a group of brothers and cousins who had all worked their way up through the ranks.

From left: Blake, Peter, Erik, and Jamie Nordstrom in 2007.John Wilcox/MediaNews Group/Boston Herald via Getty Images

In 1995, the third generation of Nordstroms retired as co-chairs of the business, handing the empire over to the next wave, a group of brothers and cousins who had all worked their way up through the ranks.

But the business was struggling. Sales growth had been stalling for several years and rumors were swirling that the family wasn't getting along with two top executives, John Whitacre, the CEO, and Michael Stein, the CFO, neither of whom were family members. On September 1, 2000, both Whitacre and Stein resigned.

A Nordstrom store in Chicago in 2003.Scott Olson/Getty Images

But the business was struggling. Sales growth had been stalling for several years and rumors were swirling that the family wasn't getting along with two top executives, John Whitacre, the CEO, and Michael Stein, the CFO, neither of whom were family members. On September 1, 2000, both Whitacre and Stein resigned.

Blake Nordstrom, who had started working at the company in 1974, took over as president. His father, Bruce, became the chair of Nordstrom's board.

Blake Nordstrom in 2010.Tina Fineberg/AP

Blake's goal was to return Nordstrom to its core value: customer service. He trimmed the fat and got rid of the consultants who had been brought in to turn things around. Soon, Nordstrom began growing once again, according to The New York Times.

Vince Talotta/Toronto Star via Getty Images

Blake's goal was to return Nordstrom to its core value: customer service. He trimmed the fat and got rid of the consultants who had been brought in to turn things around. Soon, Nordstrom began growing once again, according to The New York Times.

The Times described Blake as "a model Nordstrom": He often wished employees a happy birthday a day early so he could be the first, carried others' luggage, and filled his brother's woodshed if he noticed it running low.

Blake and Erik Nordstrom.Getty Images

The Times described Blake as "a model Nordstrom": He often wished employees a happy birthday a day early so he could be the first, carried others' luggage, and filled his brother's woodshed if he noticed it running low.

In 2015, Pete and Erik joined Blake as co-presidents of Nordstrom. The company's board said at the time that the brothers had already "supported the business as a team for many years."

Blake, Pete, and Erik Nordstrom.John Wilcox/MediaNews Group/Boston Herald via Getty Images

In 2015, Pete and Erik joined Blake as co-presidents of Nordstrom. The company's board said at the time that the brothers had already "supported the business as a team for many years."

In January 2019, Blake died suddenly at age 58. He had recently been diagnosed with lymphoma, which his doctors had said was treatable. But he started feeling sick while on a trip with his wife and died shortly after returning home.

Blake Nordstrom at a Nordstrom Rack in 2018.Vince Talotta/Toronto Star via Getty Images

In January 2019, Blake died suddenly at age 58. He had recently been diagnosed with lymphoma, which his doctors had said was treatable. But he started feeling sick while on a trip with his wife and died shortly after returning home.

"He was the best out west. Just a tremendous young man," his father, Bruce, told The Times in 2019. His brother, Erik, said at the time that he would often reflexively think to ask Blake for advice. "Something will come up and I'll have this thought in my head like, 'Oh, Blake's better at that,' or 'That's Blake's strength,'" Erik said.

Erik and Blake Nordstrom.Getty Images

"He was the best out west. Just a tremendous young man," his father, Bruce, told The Times in 2019. His brother, Erik, said at the time that he would often reflexively think to ask Blake for advice. "Something will come up and I'll have this thought in my head like, 'Oh, Blake's better at that,' or 'That's Blake's strength,'" Erik said.

Nordstrom had other issues to contend with around the same time: profits had been faltering as online shopping started to edge out traditional retail. Plus, Nordstrom had been spending big to revamp its stores, acquire e-commerce brands like Trunk Club and HauteLook, and build a new Manhattan flagship store that cost a reported $500 million.

Jae C. Hong/AP

Nordstrom had other issues to contend with around the same time: profits had been faltering as online shopping started to edge out traditional retail. Plus, Nordstrom had been spending big to revamp its stores, acquire e-commerce brands like Trunk Club and HauteLook, and build a new Manhattan flagship store that cost a reported $500 million.

By 2018, Nordstrom's sales had declined every year since 2012. "About the worst thing that could happen is to be known as the generation at Nordstrom that screwed it up," Pete Nordstrom told The Wall Street Journal at the time.

Pete Nordstrom in 2012.Frank Franklin II/AP

By 2018, Nordstrom's sales had declined every year since 2012. "About the worst thing that could happen is to be known as the generation at Nordstrom that screwed it up," Pete Nordstrom told The Wall Street Journal at the time.

Then the pandemic hit, initially shuttering stores nationwide. Nordstrom later permanently closed 20% of its fleet and has since announced it would close down Canadian operations entirely.

A shuttered Nordstrom store.JIM WATSON/AFP via Getty Images

Then the pandemic hit, initially shuttering stores nationwide. Nordstrom later permanently closed 20% of its fleet and has since announced it would close down Canadian operations entirely.

The company's market capitalization has plunged over the past eight years from a peak of $15 billion to around $2.6 billion. In early 2023, multiple reports said the activist investor Ryan Cohen was building a stake in the company, sending the share price soaring.

A Nordstrom store.Reuters

The company's market capitalization has plunged over the past eight years from a peak of $15 billion to around $2.6 billion. In early 2023, multiple reports said the activist investor Ryan Cohen was building a stake in the company, sending the share price soaring.

Meanwhile, Erik Nordstrom was named the sole CEO of the business in early 2020. "He's the smartest," Bruce had told The Times a few months prior. After Erik's promotion, his older brother, Pete, stayed in the president role and continued overseeing the merchandising side of the business.

Erik Nordstrom in 2019.Shannon Stapleton/Reuters

Meanwhile, Erik Nordstrom was named the sole CEO of the business in early 2020. "He's the smartest," Bruce had told The Times a few months prior. After Erik's promotion, his older brother, Pete, stayed in the president role and continued overseeing the merchandising side of the business.

But both Erik and Pete seem to agree that whoever succeeds them at the company will not be a Nordstrom, because they'd need to work their way up over decades just like the generations before them. "I just think it's a different deal for our kids," Pete told The Times. "There's a lot of work to get from here to there."

Erik and Pete Nordstrom in 2012.Frank Franklin II/AP

But both Erik and Pete seem to agree that whoever succeeds them at the company will not be a Nordstrom, because they'd need to work their way up over decades just like the generations before them. "I just think it's a different deal for our kids," Pete told The Times. "There's a lot of work to get from here to there."

These days, Bruce Nordstrom and his sister, Anne Gittinger, are the largest individual shareholders in the family business. Though their respective net worths took a dip in 2020 during the onset of the pandemic, Forbes estimated in April 2022 that Bruce was worth $1 billion.

Bruce Nordstrom.Getty Images

These days, Bruce Nordstrom and his sister, Anne Gittinger, are the largest individual shareholders in the family business. Though their respective net worths took a dip in 2020 during the onset of the pandemic, Forbes estimated in April 2022 that Bruce was worth $1 billion.

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The Nordstrom dynasty: How wealthy heirs are still running the iconic American department store more than 100 years after it was founded on $13,000 in gold

John W. Nordstrom, a Swedish immigrant who arrived in the US in the late 1800s and headed to Alaska during the Klondike Gold Rush, founded Nordstrom. He made $13,000, which he used to open a shoe store with a friend, Carl Wallin.

By the 1920s, the Wallin & Nordstrom brand had grown to two locations in Seattle, and John was ready to retire. He and Wallin sold their shares in the business to Nordstrom's sons, Everett and Elmer, with a third son, Lloyd, joining a few years later. A family business was born.

"The depression hit us in 1929, and for five years, we struggled with the store. Everett and I put in long hours, did janitorial work, trimmed windows and helped with our books," Elmer Nordstrom wrote in a letter to Nordstrom employees in the late 1990s, describing the Great Depression.

But Nordstrom hung on. By the early 1960s, it had become the nation's largest independent-shoe-store chain. The brothers began expanding the business by acquiring two local apparel retailers — women's apparel came first, and men's and children's clothing followed a few years later.

The third generation of Nordstroms took over in 1968: Everett's son, Bruce; Elmer's sons, James and John; and Lloyd's son-in-law, Jack. This new branch of the family tree took the company public in 1971 and introduced an off-price division, Nordstrom Rack, in 1973.

The Nordstroms spent the next two decades expanding the business, opening stores across the country from Alaska to Virginia. By this time, Everett and Lloyd Nordstrom had died, but Elmer Nordstrom lived to be 88. He was working in his office right up until his death in 1993.

In 1995, the third generation of Nordstroms retired as co-chairs of the business, handing the empire over to the next wave, a group of brothers and cousins who had all worked their way up through the ranks.

Blake Nordstrom, who had started working at the company in 1974, took over as president. His father, Bruce, became the chair of Nordstrom's board.

Blake's goal was to return Nordstrom to its core value: customer service. He trimmed the fat and got rid of the consultants who had been brought in to turn things around. Soon, Nordstrom began growing once again, according to The New York Times.

The Times described Blake as "a model Nordstrom": He often wished employees a happy birthday a day early so he could be the first, carried others' luggage, and filled his brother's woodshed if he noticed it running low.

In 2015, Pete and Erik joined Blake as co-presidents of Nordstrom. The company's board said at the time that the brothers had already "supported the business as a team for many years."

In January 2019, Blake died suddenly at age 58. He had recently been diagnosed with lymphoma, which his doctors had said was treatable. But he started feeling sick while on a trip with his wife and died shortly after returning home.

By 2018, Nordstrom's sales had declined every year since 2012. "About the worst thing that could happen is to be known as the generation at Nordstrom that screwed it up," Pete Nordstrom told The Wall Street Journal at the time.

Then the pandemic hit, initially shuttering stores nationwide. Nordstrom later permanently closed 20% of its fleet and has since announced it would close down Canadian operations entirely.

The company's market capitalization has plunged over the past eight years from a peak of $15 billion to around $2.6 billion. In early 2023, multiple reports said the activist investor Ryan Cohen was building a stake in the company, sending the share price soaring.

Meanwhile, Erik Nordstrom was named the sole CEO of the business in early 2020. "He's the smartest," Bruce had told The Times a few months prior. After Erik's promotion, his older brother, Pete, stayed in the president role and continued overseeing the merchandising side of the business.

These days, Bruce Nordstrom and his sister, Anne Gittinger, are the largest individual shareholders in the family business. Though their respective net worths took a dip in 2020 during the onset of the pandemic, Forbes estimated in April 2022 that Bruce was worth $1 billion.