In 1901, former gold miner John Nordstrom and his partner Carl Wallin opened a shoe store in Seattle called Wallin & Nordstrom. When the two men retired in the 1920s, they sold their shares in the company to Nordstrom's sons. By 1960 there were eight Nordstrom stores in Washington and Oregon, and the company's original location was the largest shoe store in the country. Three years later, the company expanded its offerings with the acquisition of the Seattle-based Best Apparel store chain. In 1966 Nordstrom added men's and children's clothing to its roster. The company went public in 1971 and continued to expand. Nordstrom opened its first East Coast outlet in Virginia in 1988. Today, Nordstrom has successful stores in large markets like Chicago and New York and has plans to expand further in the Midwest and Southeast. In 1994 the company introduced a mail-order catalog.

As of early 2005, the company operates about 150 U.S. in 27 states. In addition to its flagship Nordstrom stores, the retailer also operates 49 Nordstrom Rack outlets, five Faconnable boutiques, one shoe store and one clearance store. In 2000, the company acquired European retail chain Faconnable, S.A.S. for $88 million, and operates 31 international Faconnable boutiques, mostly in Europe.