<PAGE>



                   SECURITIES AND EXCHANGE COMMISSION

                          Washington, DC 20549

                               FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES 
    EXCHANGE ACT OF 1934

For the quarterly period ended October 31, 1996

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES 
    EXCHANGE ACT OF 1934

For the transition period from _______ to _______
                    Commission File Number 0-6074

                         Nordstrom, Inc.
       ______________________________________________________
       (Exact name of Registrant as specified in its charter)

              Washington                             91-0515058
      _______________________________            ___________________
      (State or other jurisdiction of              (IRS Employer
      incorporation or organization)              Identification No.)

             1501 Fifth Avenue, Seattle, Washington  98101
         ____________________________________________________
         (Address of principal executive offices)  (Zip code)

Registrant's telephone number, including area code: (206) 628-2111


     Indicate by check mark whether the Registrant (1) has filed all 
reports required to be filed by Section 13 or 15(d) of the Securities 
Exchange Act of 1934 during the preceding 12 months (or for such shorter 
period that the Registrant was required to file such reports), and (2) 
has been subject to such filing requirements for the past 90 days.


                          YES   X       NO
                              _____        _____

Common stock outstanding as of November 26, 1996:  80,198,803 shares of 
common stock.











                                 1 of 9

<PAGE>



                     NORDSTROM, INC. AND SUBSIDIARIES
                     --------------------------------
                                 INDEX
                                 -----

<TABLE>
<CAPTION>
                                                                   Page
                                                                  Number
<S>                                                               <C>

PART I.  FINANCIAL INFORMATION


    Item 1.  Financial Statements (unaudited)

        Consolidated Statements of Earnings
           Three and nine months ended
           October 31, 1996 and 1995                                 3

        Consolidated Balance Sheets
           October 31, 1996 and 1995 and 
           January 31, 1996                                          4

        Consolidated Statements of Cash Flows
           Nine months ended October 31, 1996 and 1995               5

        Notes to Consolidated Financial Statements                   6


    Item 2.  Management's Discussion and Analysis of Financial
             Condition and Results of Operations                     7


PART II.  OTHER INFORMATION


    Item 1.  Legal Proceedings                                       9


    Item 6.  Exhibits and Reports on Form 8-K                        9
</TABLE>






















                                 2 of 9

<PAGE>

                     NORDSTROM, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF EARNINGS
             (dollars in thousands except per share amounts)
                              (unaudited)

<TABLE>
<CAPTION>
                                      Three Months           Nine Months
                                    Ended October 31,     Ended October 31,
                                 --------------------- ---------------------
                                    1996       1995       1996       1995
                                 ---------- ---------- ---------- ----------
<S>                              <C>        <C>        <C>        <C>
Net sales                        $  984,440 $  906,848 $3,131,866 $2,871,685

Costs and expenses:
  Cost of sales and related
    buying and occupancy            665,378    612,284  2,144,378  1,945,802
  Selling, general and
    administrative                  288,644    267,552    886,267    806,813
  Interest, net                       9,151     10,849     31,230     28,527
  Service charge income
    and other, net                  (34,469)   (32,379)  (102,723)   (92,741)
                                 ---------- ---------- ---------- ----------
  Total costs and
    expenses                        928,704    858,306  2,959,152  2,688,401
                                 ---------- ---------- ---------- ----------

Earnings before income taxes         55,736     48,542    172,714    183,284
Income taxes                         21,700     19,100     68,000     72,300
                                 ---------- ---------- ---------- ----------
Net earnings                     $   34,036 $   29,442 $  104,714 $  110,984
                                 ========== ========== ========== ==========
Net earnings per average share
  of common stock outstanding    $      .42 $      .36 $     1.29 $     1.35
                                 ========== ========== ========== ==========
Cash dividends paid per share
  of common stock outstanding    $     .125 $     .125 $     .375 $     .375
                                 ========== ========== ========== ==========
<FN>
These statements should be read in conjunction with the Notes to 
Consolidated Financial Statements contained herein and in the Nordstrom 
1995 Annual Report to Shareholders.
</TABLE>
















                                 3 of 9

<PAGE>

                     NORDSTROM, INC. AND SUBSIDIARIES
                        CONSOLIDATED BALANCE SHEETS
                          (dollars in thousands)
                               (unaudited)

<TABLE>
<CAPTION>
                                   October 31,  January 31,  October 31,
                                      1996         1996         1995
                                   ----------   ----------   ----------
<S>                                <C>          <C>          <C>
ASSETS
Current Assets:
  Cash and cash equivalents        $   11,343   $   24,517   $   52,324
  Accounts receivable, net            690,047      893,927      818,314
  Merchandise inventories             976,488      626,303      877,772
  Prepaid income taxes and other       67,755       68,029       63,644
                                   ----------   ----------   ----------
  Total current assets              1,745,633    1,612,776    1,812,054
Property, buildings and 
  equipment, net                    1,131,913    1,103,298    1,070,051
Other assets                           16,875       16,545       15,838
                                   ----------   ----------   ----------
TOTAL ASSETS                       $2,894,421   $2,732,619   $2,897,943
                                   ==========   ==========   ==========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
  Notes payable                    $  190,890   $  232,501   $  258,057

  Accounts payable                    473,843      277,584      429,147
  Accrued salaries, wages
    and taxes                         180,971      185,540      174,233
  Accrued expenses                     49,642       47,834       52,878
  Accrued income taxes                  6,662       14,644        2,746
  Current portion
    of long-term debt                  25,220       74,210       99,997
                                   ----------   ----------   ----------
  Total current liabilities           927,228      832,313    1,017,058
Long-term debt                        379,750      365,733      390,122
Deferred lease credits and
  other deferred items                125,893      111,601      103,558
Shareholders' equity:
  Common stock, without par value:
    250,000,000 shares authorized;
    81,182,651, 81,113,144 and
    81,319,601 shares issued 
    and outstanding                   182,662      168,440      166,080
  Retained earnings                 1,278,888    1,254,532    1,221,125
                                   ----------   ----------   ----------
  Total shareholders' equity        1,461,550    1,422,972    1,387,205
                                   ----------   ----------   ----------
TOTAL LIABILITIES AND SHAREHOLDERS'
  EQUITY                           $2,894,421   $2,732,619   $2,897,943
                                   ==========   ==========   ==========
<FN>
These statements should be read in conjunction with the Notes to 
Consolidated Financial Statements contained herein and in the Nordstrom 
1995 Annual Report to Shareholders.
</TABLE>

                                  4 of 9

<PAGE>
                     NORDSTROM, INC. AND SUBSIDIARIES
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                          (dollars in thousands)
                               (unaudited)

<TABLE>
<CAPTION>
                                                       Nine Months
                                                    Ended October 31,
                                                   ------------------
                                                     1996      1995
                                                   --------  --------
<S>                                                <C>       <C>
OPERATING ACTIVITIES:
  Net earnings                                     $104,714  $110,984
  Adjustments to reconcile net earnings
    to net cash provided by (used in)
    operating activities:
  Depreciation and amortization                     116,878    96,468
      Change in:
        Accounts receivable, net                     17,280  (142,423)
        Merchandise inventories                    (350,185) (249,842)
        Prepaid income taxes and other                  274    (2,249)
        Accounts payable                            196,259   156,063
        Accrued salaries, wages and taxes            (4,569)  (16,268)
        Accrued expenses                              1,808    11,888
        Income tax liabilities                      (16,304)  (26,013)
        Deferred lease credits                       22,614    45,207
                                                   --------  --------
Net cash provided by (used in) operating
  activities                                         88,769   (16,185)
                                                   --------  --------
INVESTING ACTIVITIES:
  Additions to property, buildings
    and equipment, net                             (144,672) (181,900)
  Other                                                (910)     (248)
                                                   --------  -------- 
Net cash used in investing activities              (145,582) (182,148)
                                                   --------  --------
FINANCING ACTIVITIES:
  Proceeds from accounts receivable
    securitization                                  186,600       ---
  (Decrease) increase in notes payable              (41,611)  170,669
  Proceeds from issuance of long-term debt           57,759   140,861
  Principal payments on long-term debt              (92,973)  (25,791)
  Proceeds from issuance of common stock             14,222     2,746
  Cash dividends paid                               (30,447)  (30,848)
  Purchase and retirement of common stock           (49,911)  (39,477)
                                                   --------  --------
Net cash provided by
  financing activities                               43,639   218,160
                                                   --------  --------
Net (decrease) increase in 
  cash and cash equivalents                         (13,174)   19,827
Cash and cash equivalents at 
  beginning of period                                24,517    32,497
                                                   --------  --------
Cash and cash equivalents at end of period         $ 11,343  $ 52,324
                                                   ========  ========
<FN>
These statements should be read in conjunction with the Notes to 
Consolidated Financial Statements contained herein and in the Nordstrom 
1995 Annual Report to Shareholders.
</TABLE>

                                 5 of 9

<PAGE>

                     NORDSTROM, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                          (dollars in thousands)
                                (unaudited)

Note 1:

The consolidated balance sheets of Nordstrom, Inc. and subsidiaries (the
"Company") as of October 31, 1996 and 1995, and the related consolidated
statements of earnings and cash flows for the periods then ended, have been
prepared from the accounts without audit.

The consolidated financial information is applicable to interim periods 
and is not necessarily indicative of the results to be expected for the 
year ending January 31, 1997.

It is not considered necessary to include detailed footnote information 
as of October 31, 1996 and 1995.  The financial information should be read 
in conjunction with the Notes to Consolidated Financial Statements 
contained in the Nordstrom 1995 Annual Report to Shareholders.

In the opinion of management, the consolidated financial information 
includes all adjustments (consisting only of normal, recurring 
adjustments) necessary to present fairly the financial position of 
Nordstrom, Inc. and subsidiaries as of October 31, 1996 and 1995, and the 
results of their operations and cash flows for the periods then ended, 
in accordance with generally accepted accounting principles applied on a 
consistent basis.

Certain reclassifications of prior year balances have been made for
consistent presentation.

Note 2:  The summarized unaudited combined results of operations of
         Nordstrom Credit, Inc. and Nordstrom National Credit Bank are 
         as follows:

<TABLE>
<CAPTION>
                                 Three Months          Nine Months
                               Ended October 31,     Ended October 31,
                                1996     1995         1996     1995
                              -------- --------     -------- --------
    <S>                       <C>       <C>        <C>        <C>
    Total revenue             $34,780   $36,338    $113,144   $98,176
    Earnings before income
      taxes                    14,663    12,589      36,589    27,064
    Net earnings                9,573     8,004      23,429    17,264
</TABLE>








                                 6 of 9

<PAGE>

                     NORDSTROM, INC. AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                          (dollars in thousands)
                                (unaudited)

Note 3:

On August 15, 1996, the Company transferred substantially all of its VISA
credit card receivables (approximately $203,000) to a trust in exchange for
certificates representing undivided interests in the trust.  A Class A
certificate with a market value of $186,600 was sold to a third party, and a
Class B certificate, which is subordinated to the Class A certificate, was
retained by the Company.  The Company owns the remaining undivided interests
in the trust not represented by the Class A and Class B certificates (the
"Seller's Interest").  These transactions had no significant impact on the
Company's earnings in the quarter ended October 31, 1996.

Cash flows generated from the receivables in the trust are, to the extent
allocable to the investors, applied to the payment of interest on the Class A
and Class B certificates, absorption of credit losses, and payment of
servicing fees to the Company, which will continue to service the receivables
for the trust.  Excess cash flows revert to the Company.  The Company's
investment in the Class B certificate and the Seller's Interest totals $28,423
at October 31, 1996, and is included in accounts receivable.

Pursuant to the terms of operative documents of the trust, in certain events
the Company may be required to fund certain amounts pursuant to a recourse
obligation for credit losses.  Based on current cash flow projections, the
Company does not believe any additional funding will be required.


I
tem 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the Management
Discussion and Analysis section of the Nordstrom 1995 Annual Report to
Shareholders.

Results of Operations:
- ----------------------
During the third quarter of 1996, sales increased 8.6% when compared with the
same quarter in 1995.  For the nine-month period, sales increased 9.1%
compared to the same period in 1995.  Sales for comparable stores decreased
 .3% during the quarter and increased 1.5% for the nine-month period, with the
remainder of the increase coming from new units.  Comparable store sales
results continued to soften during the third quarter, and the Company
remains cautious with respect to sales projections for the remainder of the
year.

Cost of sales and related buying and occupancy costs increased as a
percentage of sales for both the quarter and the nine-month period as compared
to the corresponding periods in 1995.  For the quarter, the increase was due
primarily to higher buying costs, as the Company's merchandise margins 
improved in the quarter as a result of lower markdowns.  For the nine-month
period, the increase was due to lower merchandise margins which resulted from
increased markdowns and a lower markup.  Occupancy costs also increased as a
percentage of sales for the nine-month period as a result of new stores and
remodeling projects.

                                 7 of 9

<PAGE>

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONT.)

Selling, general and administrative expenses decreased as a percentage of
sales during the third quarter as compared to the corresponding period in 1995
primarily due to management's efforts to control costs, as well as an
acceleration of certain sales promotion expenses from the third to the first
quarter in 1996.  The decrease was partially offset by higher bad debt
expenses resulting from continuing increases in the level of bad debt write-
offs.  Higher bad debts were also a major factor in the increase in selling,
general and administrative expenses as a percentage of sales for the nine-
month period as compared to the corresponding period in 1995.  Direct selling 
expenses also increased in the nine-month period.  These increases were
partially offset by lower distribution costs for the Company's direct sales
division and decreased spending on development of a new payroll system which
was implemented in early 1996.

For the quarter, interest expense decreased as a percentage of sales when
compared to the corresponding period in 1995, primarily due to lower levels of
debt outstanding.

Service charge income and other, net decreased as a percentage of sales for
the quarter when compared to the corresponding period in 1995 primarily due to
a reduction in net revenues from the Company's VISA card program, as a result
of the securitization of these receivables in the third quarter.  Certain
other information regarding this securitization of receivables is included in
Note 3 to the financial statements under Part I, Item 1.  The decrease was
partially offset by a gain on the sale of equipment totaling $3.1 million
($.02 per share after income taxes).  For the nine-month period, service
charge income and other, net increased as a percentage of sales when compared
to the corresponding period in 1995 primarily due to an increase in net
revenues resulting from the growth of the Company's VISA and proprietary
credit card programs.

Financial Condition:
- --------------------
The Company completed a securitization of its VISA card portfolio on August
15, 1996.  Substantially all of the net proceeds from the transaction were
used to reduce short-term.  Certain other information regarding this
securitization of receivables is included in Note 3 to the financial 
statements under Part I, Item 1.  Also during the third quarter, the Company
issued $58 million in medium-term notes to replace maturing medium-term notes.

In October 1996, the Company completed its repurchase of $100 million of the
Company's outstanding stock as approved by the Board of Directors at the May
1995 meeting.  At its regular meeting on November 19, 1996, the Board of
Directors of the Company authorized another repurchase of up to $100 million
of the Company's outstanding stock.

During the third quarter the Company opened two full-line stores at Somerset
Collection North in Troy, Michigan and at Park Meadows Mall in Denver,
Colorado.  This completes the store opening schedule for 1996.  Construction
is progressing as planned on the three new stores scheduled to open in 1997.







                                 8 of 9

<PAGE>

 
                      PART II - OTHER INFORMATION


Item 1.  Legal Proceedings
- --------------------------
The Company is not involved in any material pending legal proceedings, other
than routine litigation in the ordinary course of business.


Item 6.  Exhibits and Reports on Form 8-K
- -----------------------------------------

(a)  Exhibits
     --------

     (10.1)  Master Pooling and Servicing Agreement dated August 14, 1996
             between Nordstrom National Credit Bank and Norwest Bank
             Colorado, National Association is filed in paper format under
             Form SE.

     (10.2)  Series 1996-A Supplement to Master Pooling and Servicing
             Agreement dated August 14, 1996 between Nordstrom National
             Credit Bank, Nordstrom Credit, Inc. and Norwest Bank Colorado,
             National Association is filed in paper format under Form SE.

     (10.3)  Transfer and Administration Agreement dated August 14, 1996
             between Nordstrom National Credit Bank, Enterprise Funding
             Corporation and Nationsbank, N.A. is filed in paper format
             under Form SE.

     (27.1)  Financial Data Schedule is filed herein as an Exhibit.

(b)  Reports on Form 8-K
     -------------------

     No reports on Form 8-K were filed during the quarter for which this
     report is filed.



                               SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the 
Registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.


                  
                              NORDSTROM, INC.
                                (Registrant)


                             /s/            John A. Goesling
                             ------------------------------------------
                             John A. Goesling, Executive Vice President
                                             and Treasurer
                            (Principal Financial and Accounting Officer)


Date:  December 12, 1996
- ------------------------














                                 9 of 9

<PAGE>



NORDSTROM, INC. AND SUBSIDIARIES

<TABLE>
<CAPTION>

Exhibit Index

Exhibit                                       Method of Filing
- -------                                       ----------------
<S>                                           <C>
10.1  Master Pooling and Servicing Agreement  P Filed in paper format under
                                              Form SE

10.2  Series 1996-A Supplement to Master
      Pooling and Servicing Agreement         P Filed in paper format under
                                              Form SE

10.3  Transfer and Administration Agreement   P Filed in paper format under
                                              Form SE
 
27.1  Financial Data Schedule                 Filed herewith electronically
</TABLE>







<TABLE> <S> <C>

<ARTICLE> 5
<MULTIPLIER> 1,000
       
<S>                             <C>
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          JAN-31-1997
<PERIOD-END>                               OCT-31-1996
<CASH>                                          11,343
<SECURITIES>                                         0
<RECEIVABLES>                                  690,047
<ALLOWANCES>                                         0
<INVENTORY>                                    976,488
<CURRENT-ASSETS>                             1,745,633
<PP&E>                                       1,131,913
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                               2,894,421
<CURRENT-LIABILITIES>                          927,228
<BONDS>                                        379,750
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       182,662
<OTHER-SE>                                   1,278,888
<TOTAL-LIABILITY-AND-EQUITY>                 2,894,421
<SALES>                                      3,131,866
<TOTAL-REVENUES>                             3,131,866
<CGS>                                        2,144,378
<TOTAL-COSTS>                                2,959,152
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              31,230
<INCOME-PRETAX>                                172,714
<INCOME-TAX>                                    68,000
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   104,714
<EPS-PRIMARY>                                     1.29
<EPS-DILUTED>                                     1.29
        

</TABLE>