Nordstrom, the renowned department store chain, boasts a rich heritage. What began in 1901 as a humble shoe store in Seattle, established by Swedish immigrant John W. Nordstrom and his business partner Carl Wallin, would eventually become one of America’s most respected retail institutions. What distinguishes Nordstrom is its legendary customer service. Enabled by family ownership and an unusual management philosophy that places shopfloor employees at the top of the organisational chart, Nordstrom has created countless retail folklore, from refunding tyres that it didn’t sell to sifting through vacuum bags to find a customer’s lost diamond ring. Those stories became powerful word-of-mouth marketing, attracting millions of loyal customers. However, Nordstrom is facing a challenging period. Despite building a successful omni-channel operation, the company’s revenue and profit have declined over the past decade, leading to a dramatic fall in its share price. The culprit? High markups required to compensate for the exceptional in-store experience became harder to justify as more people found cheaper prices and greater convenience online. Nordstrom’s story shows that premium service alone doesn’t guarantee success.