October 27th, 2015 ORACLE OPEN WORLD | NORDSTROM

The information in this report is highly confidential and should not be disclosed to persons outside of the Company in order to protect the Company's competitive position. Your copy of this report should be properly handled, should not be copied, and should not be left out in the open where unauthorized individuals could have access to it. In addition, this report contains insider information, and it is a violation of federal law to make use of this "material nonpublic information" in making investment decisions. It is also a violation of federal law for any employee to reveal material nonpublic information to anyone outside of the Company, or to recommend to anyone a transaction in stock of a company about which the employee has material nonpublic information. This practice, known as "tipping", violates federal law, regardless of whether the person providing the information or recommendation derives any benefit from the "tippee's" actions. Please call the Corporate Secretary if you have any questions regarding the Company's Insider Trading Policy.

SAFE HARBOR

3

AGENDA

Company Overview 5-Min

Solution Evolution 5-Min

Canada 5-Min

US Rack Stores 10-Min

Future Phases 5-Min

1

2

3

4

5

4

COMPANY OVERVIEW Nordstrom – Since 1901

•   121 full-line stores (US, CA & PR)

•   194 Rack locations

•   5 Trunk Club clubhouses

•   2 Jeffrey boutiques

•   1 clearance store

•  Online in 96 countries

through Nordstrom.com

•  Online in 3 countries

through nordstromrack.com & 

HauteLook

Commitment to happy, loyal

customers through product

selection and service

Our #1 Goal is to improve

customer service

•   Free shipping

•   Free returns

•  Mobile shopping

•   Exciting new retail

partnerships

We offer a fresh, relevant

shopping experience and

inspiring style

5

OUR STRATEGIC JOURNEY – ONE NORDSTROM We have been on a strategic journey to deliver growth expectations and focus on how we “link our boxes” to bring One Nordstrom to life for our customers

2010 2011-2013 2014+ Raising our Ambition

Refocus on Growth

Raised top-line goal 33%

Building out the Boxes Through Strategic Development

Linking the Boxes so Whole > Sum of the Parts

.com

.com

.com

.com

. 2012 Young Customers

Manhattan Canada

2011 Increased store

growth

2011 Build Best-in-Class

Offer

2011 Hautelook

2013 NRack.com

6

SYSTEMS OVER TIME The core of our solutions footprint is a highly integrated and customized RMS9 platform that is no longer scalable or sustainable

Perpetual Inventory Multi-Channel Perpetual Inventory Merch Roadmap

FLS Rack & Private Label

Real Time Inv.

Integr. Buy Plan

Buy Online Pick Up In

Store

Single View of

Inv

Sales & Ret. Align

Extended Online Offering / International

New Selling Formats / Personalization

Direct to Cons.

Business Initiatives

2001 2016 2003 2005 2007 2008 2010 2011

RMS System Complexity Over Time

E-Commerce

Rack

Full Line Stores

% of Sales

7

ENTERPRISE FOUNDATION | SCOPE

8

TECHNOLOGY TO ENABLE FUTURE GROWTH

NMG Business Goals

Acquire and Migrate Customers

Enable Growth

Bring One Nordstrom to Life

Improve Product Relevance

1 Enable Canada Expansion

2

3 Support Rack (Off Price) stores as a separate entity

Sustain Company Growth

Need to Deliver

Current Reality System Capacity

Highly Customized

Business Growth Constrained

Org Effectiveness is Compromised

No system support

4 Maintain upgrade path & leverage our investment

9

77

HOW WE OPERATE

6+ year program, replacing current enterprise foundation

solutions & delivering new systems with capabilities that are

scalable to our company growth

PROGRAM OVERVIEW

10 10

Phase 1: CANADA

SUSTAIN CURRENT SYSTEMS & CHANGE MANAGEMENT

2014 2015 2016 2017 2018

NGEN IMPLEMENTATION PHASES

Stabilize

Stabilize

Stabilize

Phase 5: Full Price

Phase 2: US RACK STORES

Phase 2.1 : Canada Racks

Phase 4: Canada Full Price Instance

Stabilize

Discovery

Discovery Stabilize

TODAY

.com

.com

.

Phase 3: Online Off Price

11

NGEN | PHASE 1: CANADA Canada Opportunity

Benefits & Lessons Learned

Benefits:

•   Small Footprint

•   Greenfield Implementation

•   Core Canada Leadership Business Team

Lessons to Carry Forward:

•   Setting fixed end-date forced decision-making rigor agility

•   Obtaining Business buy-in was critical to staying the “vanilla” path (would not be viable in the next phase)

•   Leveraging Retail Reference Library best practices

•   Onsite go live support increased ability to react to issues

•   Assessing Skills & Capabilities, fill gaps and build teams for the future

FY14 FY15

Phase 1: Canada Full Price

Solution Footprint

Stabilize

•  Price Mgmt.

•  SIM

•   Merch Foundation (Item, supplier, Purch Order Mgmt.)

•  Trade Mgmt. (New)

•  Invoice Match (New)

Vancouver

ON TIME & ON BUDGET

12

CANADA | VANCOUVER

13 13

Phase 1: CANADA

SUSTAIN CURRENT SYSTEMS & CHANGE MANAGEMENT

2014 2015 2016 2017 2018

Stabilize

Stabilize

Stabilize

Phase 5: Full Price

Phase 2: US RACK STORES

Phase 2.1 : Canada Racks

Phase 4: Canada Full Price Instance

2019 2020

Stabilize

Discovery

Discovery Stabilize

TODAY

.com

.com

.

Phase 3: Online Off Price

NGEN IMPLEMENTATION PHASES

14

NGEN | PHASE 2: US RACK Off Price Opportunity

Benefits of OP First

Benefits

•   Removes Off Price volume from RMS9

•   Allows Off Price to continue to scale at projected rates

Key Considerations

•   1st Customer on V14.1 & our first RMS upgrade ever

•   Challenges staying vanilla (additional integrations, key functionality & Performance)

•   Additional complexities required additional structure and optimized operating models

FY14 FY15 FY16

H1 H2 H1 H2 H1 H2

Store Inventory Management

Merchandise Operations Management

Store Inventory Management

Go Live

V14.1 Upgrade

Conversion & Enhancements

By Store

By Div/Dept.

15

US RACK | LESSONS LEARNED & STATS Lessons Learned

Resources & Services

•   Program Mgmt. Office (Arch Review Board / Change Control Board)

•   Business & Solution Architecture

•   Testing & Platform Architecture •   Test & Environment Automation

•   Dedicated & Collocated Resources •   Change Readiness & Service Introduction

Complexity

•   Size & Scope

(upgrade & initiative)

•   Implementation Planning

•   Level of Integration & Interdependency

•   Supporting Organizational Operating Model

Executive Sponsorship

•   Champion Change •   Remove Roadblocks

Stats

109,000 Days of Effort

13,500+ Employees Impacted across 9 business organizations

300+ team members across business & IT

40+ Systems & 700+ Interfaces Impacted

200+ SMEs Engaged

16 16

Phase 1: CANADA

SUSTAIN CURRENT SYSTEMS & CHANGE MANAGEMENT

2014 2015 2016 2017 2018

Stabilize

Stabilize

Stabilize

Phase 5: Full Price

Phase 2: US RACK STORES

Phase 2.1 : Canada Racks

Phase 4: Canada Full Price Instance

2019 2020

Stabilize

Discovery

Discovery Stabilize

TODAY

.com

.com

.

Phase 3: Online Off Price

NGEN - IMPLEMENTATION PHASES | FUTURE

17

Q&A

18