A New Line Is Unveiled at Nordstrom

A fourth generation of the Nordstrom Inc. founding family is taking the reins.

The department store retailer named six co-presidents: Bill, Blake, Dan, Erik, Jim A. and Pete Nordstrom. They will succeed Ray Johnson, 53, and John Whitacre, 42, who will become chairmen, the first non-Nordstrom-family members to hold those positions in the company’s 94-year history.

The co-chairmen succeed family members Jack McMillan, 63, and Bruce, 61; Jim, 55, and John Nordstrom, 57.

The six co-presidents, all in their 30s, will be responsible for day-to-day sales and operations of the Seattle-based retailer. The chain has 76 stores in 14 states. Its revenue last year totaled $3.89 billion.

“These are six people who were born in the same cradle. It’s not like they have different agendas,” said Edward Weller, an analyst at Robertson Stephens & Co. “The unified vision of the Nordstrom family can be surprisingly powerful and cooperative.”

The Nordstrom family owns 36.4% of the company’s stock.

Nordstrom shares fell 25 cents to $40.75 in Nasdaq trading Monday.

Nordstrom says it believes that at a time when the retail industry is consolidating, a large co-presidency will allow the company to sharpen its focus on its growing apparel, private-label, catalogue and off-price retail divisions and also provide better support for the 13 regions by having a greater executive presence in the stores.

Analysts generally applauded the move, noting that investors concerned about nepotism will like the promotion of two people who are not Nordstrom family members to the chairmanship.

“The two chairmen will have the ultimate say,” said Saul Yaari, an analyst with Piper Jaffray Inc. “And if you think about it, they now have fewer people in the chairman’s spot, which narrows the pyramid. With six it may be more complicated, but the co-chairmen will make it easier.”

Nordstrom does not have a chief executive. The co-presidents and co-chairmen will run the business through team management, which hinges on building consensus, company spokeswoman Brooke White said.

Family participation is nothing new to Nordstrom, which began when gold miner John W. Nordstrom and shoemaker Carl Wallin founded the company in 1901. John Nordstrom retired in 1928, handing over the reins to sons Everett and Elmer.

Wallin also retired, and he sold his shares to the next-generation Nordstroms, who later included younger brother Lloyd. By 1959, the three brothers had built the chain into the country’s largest independently owned shoe store. They added clothing with the purchase of Best Apparel in 1963.

The three brothers managed by consensus, rotating titles and sharing responsibilities. They brought in a third generation of family management--Bruce, Jim and John Nordstrom and Jack McMillan (Lloyd Nordstrom’s son-in-law)--in 1968. All were in their 30s when they came to the company.

Nordstrom said Johnson and Whitacre, the new co-chairmen, will remain active in company operations.