text: **COMPETITIVE CONDITIONS**
  We operate in a highly competitive business environment. We compete with other national, regional, local and online retailers that may carry 
  similar lines of merchandise, including department stores, specialty stores, off-price stores, boutiques and Internet businesses. Our specific 
  competitors vary from market to market. We believe the keys to competing in our industry are providing great customer service and customer 
  experiences in stores and online, which includes compelling price and value, fashion newness, quality of products, selection, convenience, 
  technology, product fulfillment, personalization and appealing, relevant store environments in top locations. 
  
  **INVENTORY**
  We plan our merchandise purchases and receipts to coincide with expected sales trends. For instance, our merchandise purchases and 
  receipts increase prior to our Anniversary Sale, which has historically extended over the last two weeks of July. We also purchase and 
  receive a larger amount of merchandise in the fall as we prepare for the holiday shopping season (from late November through December). 
  Beginning in 2012, we increased our investment in pack and hold inventory at Nordstrom Rack, which involves the strategic purchase of 
  merchandise from some of our full-line stores’ top brands in advance of the upcoming selling seasons to take advantage of favorable buying 
  opportunities. This inventory is typically held for six months on average and has contributed to the growth in our Nordstrom Rack business. 
  We pay for our merchandise purchases under the terms established with our vendors. 