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RESULTS & RECOGNITIONSTORE RESULTS TOP 5 DEPARTMENTS

PACESETTERS ON-TRACK ALL STARS

YTD VOLUME16,951,266

YTD (3.8%)

Derryn Dixon Lonnie WilliamsDrake JohnsonLydonna WalkerApril KaufmannRoman KlimovSierra Ybarra

1.2.3.4.5.6.7.8.9.10.11.

1. Beauty2. TBD/TOPSHOP3. AtHome/Hosiery4. Handbags5. Women’s Shoes

Valeria CoopermanDaisy SierraJason ArdissoniManny PonceMarisol RamirezMaryam NozariTyler BeverinoKira LevyLisa EdwardsKarina MeraRoman Klimov

Heather Poet-JohnsonDelia GallagherRobert AlcalaVanessa PhillipsJillian JacobsAimee PetersonDaniel Yabrra

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OUR FOCUS

ONE NORDSTROM DELIVERED THROUGH 3 STRATEGIC PILLARS

SERVICE & EXPERIENCE delivered in combination

online and in-store

FASHION AUTHORITY through the best

product and inspiration

A BRAND enabled by our people and built by

our customers

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OUR FOCUS: FLS

YOU ARE EMPOWERED TO MAKE THE

CUSTOMER FEEL GOOD

MAKE OUR STORES A CONVENIENT PLACE TO

SHOP

What does this mean for FLS Playbook?

What is our Service

Promise?

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UPDATE ON THE CUSTOMER EXPERIENCE

• BOPUS• Increased Text Style adoption• Continued Own Your Business growth

WHERE WE’VE SEEN WINS…

NEW & EXCITING SERVICES COMING!

• Store Reserve and Order Pick-up• Digital Selling Tools• New features on the app to enable

customers to more easily shop our stores

Let the customer be in control. Value their time

Sell to customers wherever and whenever using the tools.

Ensure we deliver a great experience; fill the orders

More convenient experiences earn trust and cultivate stronger relationships & loyalty with our customers

OUR FOCUS:

ANNUAL EMPLOYEE

SURVEY2016 RESULTS

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Thank you to everyone who participated!

19%

67%

69%

2015 FLS PARTICIPATION RATE

2016 FLS PARTICIPATION RATE

OUR STORE’S 2016 PARTICIPATION RATE

FLS EMPLOYEE SURVEY RESULTS

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WHAT WE HEARD FROM THE SURVEY LAST YEAR

Career Growth

New Hire Experience

Work/Life Balance

Pay Transparency

WHERE WE NEEDED TO IMPROVE:

WHAT WE DID:

Increased visibility & understanding of how

we pay

Launched Career Central in all stores

Rolled out DYB Scheduling Tool

Enhanced the new hire focus in all stores

Salesperson Average Hourly rate +5.4%!

More SM & DM time with new hires in the 1st week.

Salesperson Turnover -3.2%!

Promoted over 800 salespeople to ADM roles &

500 ADMs to DM roles!

24/7 mobile access to schedules.

113 stores currently using the tool.

WHERE WE ARE TODAY:

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2016 PEOPLE RESULTS

PEOPLE METRICS FLS RESULTS STORE RESULTS

SALESPERSON AVERAGE HOURLY RATE +5.4% +4.8%

SALESPERSON SPH +4% +3.3%

DM SPH +1.3% +18.8%

ADM SPH +2.9% +4.8%

SALESPERSON VOLUNTARY TURNOVER -3% -20%

DM DIVERSITY +2% +8%

ADM DIVERSITY +1% +10%

FLS Results YTD thru Q2 2016

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WHAT WE HEARD FROM THE SURVEY THIS YEAR FROM ALL FLS EMPLOYEES

WHAT WE HEARD FROM YOU:

• You are motivated to go beyond what is normally expected to help Nordstrom be successful

• You are proud to work for Nordstrom

• You understand Nordstrom’s pay policies and practices

• Your manager treats you with respect and dignity

RESPECT

COMMUNICATION

CAMARADERIE

TOP 3 THEMES MOST IMPORTANT TO FLS

EMPLOYEES:

WHAT WE NEED TO WORK ON:

• Unclear how to get promoted and how the decisions get made

• Be faster and more efficient with our decision making

• Demonstrate where we’ve improved and taken action

• Communicate changes clearly and timely

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WHAT WE HEARD FROM THE SURVEY THIS YEAR IN OUR STORE

WHAT WE HEARD FROM YOU:

• You are part of a team that accepts a variety of ideas, perspectives, and working styles

• Your immediate managers treat you with respect and dignity. They live the company values

• You have a good idea/understanding of the possible career paths at Nordstrom

RESPECT

EQUITY

COMMUNICATION

TOP 3 THEMES MOST IMPORTANT TO

OUR STORE

WHAT WE NEED TO WORK ON:

• Be more transparent about compensation

• Communicate changes clearly and timely

• Share more information on what’s going on in other parts of the company

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We want to be as renowned for the employee experience as we are for the

customer experience

TO DO THIS, WE NEED TO HEAR FROM YOU HOW WE CAN IMPROVE….

Share your thoughts with your Department Manager,

Store Manager, HR Manager.

And look for this board coming soon to ALL stores:

WHAT CAN WE DO BETTER?

WHAT CAN WE DO BETTER? RESPONSE WITHIN 24 HOURS

CHARITABLE MATCH PROGRAM + UNITED WAY PAYROLL DEDUCTION• WE’LL MATCH YOUR ELIGIBLE DONATIONS – MINIMUM $25; YOU HAVE $5,000

TOTAL EACH YEAR• YOU CAN PARTICIPATE ON YOUR FIRST DAY WORKING WITH US• PAYROLL DEDUCTION IS AVAILABLE FOR UNITED WAY – WE’LL MATCH THOSE

DONATIONS TOO!

Q&A