Nordstrom Forms Subsidiary to Boost Online Business
The majority-owned unit will be backed with $10 million in cash from Nordstrom as well as a $15-million investment from Benchmark Capital and a $1-million investment from Madrona Investment Group.
Dan Nordstrom, a co-president of Nordstrom, was named CEO of Nordstrom.com. Its first effort will be Nordstromshoes.com, an online shoe store that will launch this fall with an inventory of more than 20 million pairs of shoes. Nordstrom.com will take advantage of the company's catalog operation and existing e-commerce assets and its distribution network. The company's Web site launched in October 1998.