 |
 | |
 |  |
| We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level. |
For Immediate Release MEDIA CONTACT: August 24, 1999 Brooke White (206)373-3030 FINANCIAL CONTACT: Bob Adams (206)373-4034 NORDSTROM FORMS SUBSIDIARY -- NORDSTROM.COM -- TO ACCELERATE GROWTH OF ITS INTERNET AND CATALOG DIRECT SALES BUSINESSES First project to be launched as the World?s Biggest Shoe Store -- NORDSTROMshoes.com -- offering 20 million pairs of shoes SEATTLE, Wash. - AUGUST 24, 1999 - Nordstrom, Inc. (NYSE: JWN) today announced plans to establish a new subsidiary -- Nordstrom.com -- to promote rapid expansion of its one-to-one retailing, which includes both its Internet and catalog businesses. The new subsidiary will carry out Nordstrom?s strategic objective to become the leader in fashion-related e-commerce. Nordstrom.com will be owned principally by Nordstrom, Inc., which will contribute to that subsidiary all of the assets and liabilities associated with both its present catalog and Internet businesses, as well as an additional $10 million in cash. Benchmark Capital and Madrona Investment Group will participate as minority owners, collectively investing $16 million. Benchmark is making one of its largest investments ever -- $15 million -- and will participate on Nordstrom.com?s board of directors. The subsidiary?s first major effort will be focused on establishing the world?s biggest shoe store, an Internet site to be named NORDSTROMshoes.com, which, by the 1999 holiday season, intends to offer 20 million pairs of shoes. NORDSTROMshoes.com is to be launched in the fall of 1999. ?For some time we have been developing core expertise in one-to-one retailing. Now we are accelerating our presence and offering, and believe we are the best positioned retailer to dominate fashion-related e-commerce,? said John Whitacre, chairman and chief executive officer of Nordstrom, Inc. ?We will continue to look for ways to serve our customers wherever they want to be served.? ?The apparel market on the Internet is projected to total billions of dollars within three years, and we intend to capture a significant share of that market,? said Dan Nordstrom, chief executive officer of Nordstrom.com and co-president of Nordstrom, Inc. ?Our experience in selling shoes on-line, combined with strong vendor partnerships, a well-established brand identity and our nearly 100-year heritage selling shoes, convince us this is the right initial focus. Ultimately, we plan to replicate this experience through expanded offerings in a variety of merchandise categories, including apparel, accessories, jewelry, gifts and others.? NORDSTROMshoes.com currently has agreements with seven shoe vendors: Allen Edmonds, Cole Haan, Dr. Martens, Kenneth Cole, New Balance, Skechers and Stride Rite, in addition to Nordstrom Product Group (which provides shoes under several brand names and labels, including Callaway Golf Apparel by Nordstrom, Expert by Evergreen, Preview, 81st & Park, Baby N Collection, N-Kids, Norsport and Softwear). Through additional agreements, NORDSTROMshoes.com expects to offer approximately 20 million pairs of shoes by the 1999 holiday season. For comparison, Nordstrom?s current Internet site offers approximately 200,000 pairs of shoes. Nordstrom.com will have its own executive management team and board of directors. However, inter-company agreements will govern the movement of goods between Nordstrom.com and Nordstrom, Inc., as well as a variety of other inter-company relationships incidental to operation of the business and protection of the Nordstrom brand. Initial investments by the partners in Nordstrom.com will fund site development, software expenditures and promotional activities, including a national advertising campaign for NORDSTROMshoes.com. ?Benchmark is extremely excited to be working with Nordstrom, a company whose brand and customer service reputation have stood the test of time,? said Benchmark general partner Bill Gurley. ?We are committed to delivering the leading fashion experience on the Internet, and with ourselves, Nordstrom and, most importantly, the employees at Nordstrom.com, we have all the resources necessary to make it happen.? Benchmark also has been involved with companies such as eBay, Ariba, Webvan, E-Loan, Red Hat and Scient. Tom Alberg, principal of Madrona Investment Group, has provided strategic counsel to the venture and will continue to be responsible for the Madrona-Nordstrom relationship. Alberg has been a member of the board of directors of Amazon.com since its inception. Nordstrom, Inc., is a fashion specialty retailer with 100 stores located in 23 states -- including 69 full-line stores, 25 Nordstrom Racks, three Fa‡onnable boutiques, two freestanding shoe stores, and one clearance store. It also offers a variety of direct sales catalogs and has an Internet presence at nordstrom.com. Total square footage of the company?s stores is 14,035,000. Certain statements in this news release contain ?forward-looking? information (as defined in the Private Securities Litigation Reform Act of 1995) that involves risks and uncertainties, including anticipated store openings and distribution channels, planned capital expenditures, and trends in company operations. Actual future results and trends may differ materially depending upon a variety of factors including, but not limited to, the company?s ability to predict fashion trends, consumer apparel buying patterns, the company?s ability to control costs and expenses, weather conditions, hazards of nature such as earthquakes and floods, trends in personal bankruptcies and bad debt write-offs, employee relations, the company?s ability to continue its expansion plans, and the impact of economic and competitive market forces. The company?s SEC reports may contain other information on these and other factors which could affect its financial results and cause actual results to differ from any forward-looking information it may provide. | ||||||||||||||
|
| Home | Hot | SubjectMarks | PeopleMarks | Keepers | Settings |
| Terms Of Use | Contact Us | Copyright/IP Policy | Privacy Policy | About Us | FAQ | Advertise on SI |
| © 2025 Knight Sac Media. Data provided by Twelve Data, Alpha Vantage, and CityFALCON News |