Fashion People – "Nice Guy Nordstrom"

Host: Lauren Sherman
Guest: Pete Nordstrom, Co-CEO, Nordstrom
Date: September 2, 2025

Episode Overview

This episode offers a rare, candid conversation with Pete Nordstrom, co-CEO of Nordstrom and a fourth-generation steward of the legendary American retail family. Host Lauren Sherman dives into the evolution and resilience of Nordstrom, the challenges and opportunities of modern multi-brand retail, and the future of the department store in an age increasingly dominated by direct-to-consumer models and digital transformation. The discussion weaves personal history, family business dynamics, industry innovation, and reflections on major business decisions—including Nordstrom's recent move to go private.

Key Discussion Points & Insights

1. The Nordstrom Family Legacy and Origins

• Company Origins:
  • Nordstrom founded in 1901 by Pete’s great-grandfather, a Swedish immigrant; originally just a shoe store in Seattle ([20:16 – 23:30]).
• Evolution Through Generations:
  • Each generation expanded the business, from shoes to apparel, from local to national, and finally taking the company public for growth capital ([23:30 – 27:44]).
  • Quote: “The trick is, is to be a brand with heritage, not a heritage brand. … We just don't want to celebrate being old. We want to try to celebrate being relevant.” – Pete Nordstrom ([19:08])

2. Growing Up in the Business

• Pete details his summer jobs in the store, selling women’s shoes as a teenager, and how working in retail was positioned as hard, humble work—rather than a predetermined legacy ([25:14 – 27:44]).

3. Family Business Dynamics & Succession

• Fourth Generation Challenges:
  • Importance of humility and a promote-from-within mentality.
  • The transition from a non-family CEO back to family leadership after internal and external pressures ([34:58 – 39:46]).
  • Quote: “We just didn't want to be known as the generation of Nordstrom’s that screwed it up.” – Pete Nordstrom ([35:52])
• Unique Ownership Model:
  • Unlike some peers, Nordstrom’s family doesn’t have preferred shares or absolute control; at most, the extended family owned about a third of shares—“we weren't entitled to it either” ([36:43]).

4. Nordstrom’s Strategy for Staying Relevant

• Merchandising and Brand Mix:
  • Pursuing a curation that is as renowned for what Nordstrom sells as for how they're sold ([42:13 – 45:00]).
  • Bringing in talent like Jeffrey Kalinsky (luxury/designer expertise) and entering strategic partnerships (e.g., Topshop, Everlane, Skims) ([47:15 – 53:35]).
• Quote:
  • “We used to go and talk to the brands, the designer brands, like, do you really want to be in the luxury ghetto where it's just nothing but pure-play luxury?” – Pete ([55:24])
• Younger, Modern Customer:
  • Commitment to constantly updating the brand and attracting new customers, noting, “If you're not actually trying to get younger, you're going to get older because all your customers get a year older every year.” – Pete ([45:17])

5. Department Store Industry Turbulence & Adaptation

• Changing Retail Landscape:
  • Host Laura lays out the intense competitive challenges, from the fall of Barneys to the rise and fall of DTC and marketplace players ([63:52 – 66:03]).
  • Pete acknowledges the industry’s constant state of flux, especially as brick-and-mortar’s role evolves ([66:04 – 69:29]).
  • Personal loss: The death of Blake Nordstrom (2019) disrupted company leadership and confidence at a critical moment ([66:51]).
• Going Private:
  • Motivation: Stock undervaluation, activist investors, public company pressures, and lack of sufficient growth stories led to the decision ([69:30 – 73:33]).
  • Structure: Partnering with Liverpool, a Mexican retail giant, as a 51/49 split—“They don’t want to run it. … We own 51, they own 49” ([76:16]).

6. Reimagining the Customer and the Store

• Hybrid Shopping Experience:
  • Blend of digital and physical retail is essential; stores are crucial for discovery, instant gratification, returns, and premium service ([79:58 – 82:33]).
  • Quote: “A good guy for us is that creates a trip to a store… what a store does that online does not do as well is discovery.” – Pete ([80:36])
• Investing in Meaningful Experiences:
  • Liverpool’s investment enables reinvestment in stores and deeper customer focus, not just cost-cutting ([76:16 – 79:56]).

7. Human Touch: Personal Styling and Brand Credibility

• Bringing in Top Talent:
  • High-profile hires like stylist Katherine Bloom give Nordstrom new cachet and ability to serve high-touch clientele, reflecting personalized service as a differentiator ([83:13 – 87:46]).
  • “What wouldn’t we do to get Katherine Blum? I mean, she is a huge difference maker. … She can lift and shift over to our business…” – Pete ([84:16])
• Panoramic Merchandising:
  • “Her customers are really happy. They were able to get everything they want and some things that was harder for them to get through Katherine, and Katherine’s happy. She’s got a bigger closet to sell from.” ([87:46])

8. Pete’s Podcast and Cultivating Curiosity

• The podcast is a window into company values: authenticity, staying close to the culture, and listening to entrepreneurs and internal leaders. Pete credits it with making him a better listener and leader ([89:51 – 93:18]).
• “People like shopping with a company that I think they feel is run by people, and there’s a humanity to it.” ([90:04])
• Notable guests mentioned: Anna Wintour, Kenneth Cole.

9. Looking Forward: State of Multi-brand Retail and Nordstrom’s Place

• Market Outlook:
  • Pete predicts more consolidation, fewer but better stores, and emphasizes relevance, youth appeal, and strong brand partnerships as critical to survival ([93:18 – 97:59]).
  • “There's always room for the best of anything, and if we can be the best of what we do, then there's room for us.” – Pete ([95:43])
  • He emphasizes humility due to the fragility of the business, referencing Barneys’ downfall as a cautionary example ([98:00]).

Notable Quotes & Memorable Moments

• Relevance over Heritage:
  “The trick is, is to be a brand with heritage, not a heritage brand.” – Pete ([19:08])

• On Family Business Survival:
  “There just aren’t that many people like us… It’s a point of interest for almost anyone I talk to. It’s like, how the heck has that worked?” – Pete ([40:48])

• Hiring for Culture:
  “We realized early on our best chance to be successful is the three of us working together with complementary skill sets.” – Pete ([42:28])

• The Power of Good Brands, Not Price Point:
  “We said, you know, a modern person does not dress in head-to-toe Chanel. ... I'm the richest people I know have Nikes in their closet or, you know, a Vuori shirt…” ([55:24])

• On Going Private and Store Investment:
  “We want to really play the long game. … They don’t want to run it, they want us to run it. … That was one of the conditions. We don’t want to buy it [if you’re going to] cash out.” ([76:16])

• Discovery in Physical Retail:
  “A good guy for us is that creates a trip to a store and … discovery. ... [With] a curated thing in a store, that might be a much better alternative and perhaps a more enjoyable one.” ([80:36])

Important Segment Timestamps

• Family History & Public Company Evolution: [19:01 – 29:32]
• Family Business Management & Succession: [33:55 – 40:48]
• Brand Mix & Modernizing Nordstrom: [42:13 – 55:11]
• Industry Disruption & COVID Challenges: [60:09 – 66:03]
• Decision to Go Private: [69:30 – 74:24]
• Changing Customer and Store Experience: [76:16 – 82:33]
• Hiring Katherine Blume: [83:13 – 87:48]
• Podcasting & Industry Curiosity: [89:51 – 93:18]
• State of the Industry & The Future: [93:18 – 98:37]

Tone & Final Thoughts

The conversation is frank, warm, and intellectually curious, balancing personal anecdotes and practical business insight. Pete Nordstrom embodies the ethos he describes—humility, adaptability, and respect for both people and brand legacy. The episode is a master class in retail leadership, brand stewardship, and how a 120+ year-old retailer is navigating uncertainty while staying both relevant and respected.

For more in-depth industry reporting, Lauren Sherman’s Line Sheet at Puck is recommended.