Nordstrom competes by ignoring its rivals and trusting its customers and employees. I highly recommend this article which shares how thoughtfully and cautiously they are building their business.
After a slapstick impression of tying the shoelaces of a recalcitrant child, he warmed to his theme, which is to err on the side of tolerance. Blake mentioned the time he unknowingly kicked out the wife of a famous rock star for repeatedly returning merchandise. Later, when the singer showed up to complain, Blake learned whom he had offended. She was buying tens of thousands of dollars’ worth of apparel at another Nordstrom and returning a fraction of it to his store. Blake apologized, of course, and accepted the returns. As his father used to tell him, that’s how the Nordstroms pay for dinner.