dear customers

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continuous improvement

As a fashion specialty store, we’ve always believed in trying new things and taking calculated risks in order to be competitive. Here are a few recent changes we believe will enhance the Nordstrom experience.

As you can see, there is a lot going on at Nordstrom. Many of the initiatives are long-term in nature, designed to deliver lasting benefits. Throughout these changes we’ve been incredibly proud of our people and how they’ve adapted to new technology and built on the momentum of the last few years. In 2005, we were honored to be included among Fortune magazine’s “100 Best Companies to Work For in America” for the ninth time. We are especially proud of this recognition, as we’ve always strived to create a positive environment for our employees, one that allows them to deliver great service and achieve their own goals.

Finally, we wish to extend a deep and heartfelt thanks to Bruce and John Nordstrom, both of whom are retiring from the Board of Directors this year after 40 years of service. As most of you know, these men are part of the third generation leadership team — along with Jack McMillan and the late Jim Nordstrom — who guided our company from a small Northwest retailer to a leading national specialty store. These four took the company public in 1971 and continued to share leadership responsibilities for Nordstrom as co-chairmen until 1995 (Bruce reassumed his position as Chairman of the Board in September 2000). Under their watch, Nordstrom grew from
an $80 million company in 1971 to nearly an $8 billion company today.

Both Bruce and John exemplify the characteristics of their grandfather — and our founder — John W. Nordstrom. Their hard work, persistence, honesty, competitive spirit and unwavering commitment to the customer not only reflect the highest of standards, but set examples worth following — and building upon. We’re grateful for their lasting contributions and will continue to call on their expertise from time to time.

On behalf of our executive team, I’d like to personally thank you for your continued support. We enthusiastically look forward to 2006 as we build on the progress we’ve made toward our goal of being the industry leader.

Blake W. Nordstrom

Blake W. Nordstrom
President, Nordstrom, Inc.

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