<PAGE>
 
                                                  -----------------------------
                                                  OMB APPROVAL
                  UNITED STATES                   OMB NUMBER     3235-0145
        SECURITIES AND EXCHANGE COMMISSION        EXPIRES:  DECEMBER 31, 1997
            WASHINGTON, D.C. 20549                ESTIMATED AVERAGE BURDEN
                                                  HOURS PER RESPONSE . . . 14.90
                                                  -----------------------------

                                 SCHEDULE 13G


                   UNDER THE SECURITIES EXCHANGE ACT OF 1934
                             (AMENDMENT NO. _1__)*

                                Nordstrom, Inc.
- --------------------------------------------------------------------------------
                               (Name of Issuer)

                                    Common
- --------------------------------------------------------------------------------
                        (Title of Class of Securities)

                                   655664100
                  -------------------------------------------
                                (CUSIP Number)


Check the following box if a fee is being paid with this statement []. (A fee
is not required only if the filing person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7).

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).



                               PAGE 1 OF 4 PAGES

<PAGE>
 
- -----------------------                                  ---------------------
  CUSIP NO. 655664100                   13G                PAGE 2 OF 4 PAGES
- -----------------------                                  ---------------------
 
- ------------------------------------------------------------------------------
      NAME OF REPORTING PERSON
 1    S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

      Dodge & Cox                     94-1441976

- ------------------------------------------------------------------------------
      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*         (a) [_]
 2                                                              (b) [_]
      N/A
                                                 
- ------------------------------------------------------------------------------
      SEC USE ONLY
 3
 

- ------------------------------------------------------------------------------
      CITIZENSHIP OR PLACE OF ORGANIZATION
 4    
      California - U.S.A.

- ------------------------------------------------------------------------------
                          SOLE VOTING POWER
                     5   
     NUMBER OF            4,592,245
 
      SHARES       -----------------------------------------------------------
                          SHARED VOTING POWER
   BENEFICIALLY      6
                          533,350
     OWNED BY
                   -----------------------------------------------------------
       EACH               SOLE DISPOSITIVE POWER
                     7    
    REPORTING             5,103,149
 
      PERSON       -----------------------------------------------------------
                          SHARED DISPOSITIVE POWER
       WITH          8
                          22,446

- ------------------------------------------------------------------------------
      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
 9  
      5,125,595

- ------------------------------------------------------------------------------
      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES*
10                  
      N/A
 
- ------------------------------------------------------------------------------
      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
11    
      6.4%

- ------------------------------------------------------------------------------
      TYPE OF REPORTING PERSON*
12
      IA

- ------------------------------------------------------------------------------

                     *SEE INSTRUCTION BEFORE FILLING OUT!
                               PAGE 2 OF 4 PAGES

<PAGE>
 
   Item 1(a) Name of Issuer:
             -------------- 
             Nordstrom, Inc.

   Item 1(b) Address of Issuer's Principal Executive Offices:
             ----------------------------------------------- 
             1501 Fifth Avenue
             Seattle, WA  98101-1603

   Item 2(a) Name of Person Filing:
             --------------------- 
             Dodge & Cox


   Item 2(b) Address of the Principal Office or, if none, Residence:
             ------------------------------------------------------- 
             One Sansome St., 35th Floor
             San Francisco, CA  94104

   Item 2(c) Citizenship:
             ----------- 
             California - U.S.A.


   Item 2(d) Title of Class of Securities:
             ---------------------------- 
             Common

   Item 2(e) CUSIP Number:
             ------------ 
             655664100


   Item 3    If the Statement is being filed pursuant to Rule 13d-1(b),
             ----------------------------------------------------------
             or 13d-2(b), check whether the person filing is a:
             ------------------------------------------------- 

             (e) [X]  Investment Advisor registered under section 203 of
                      the Investment Advisors Act of 1940

   Item 4    Ownership:
             --------- 
             (a)  Amount Beneficially Owned:
                  ------------------------- 
                  5,125,595

             (b)  Percent of Class:
                  ----------------       
                  6.4%



                               PAGE 3 OF 4 PAGES

<PAGE>
 
             (c)  Number of shares as to which such person has:
                  ---------------------------------------------

             (i)  sole power to vote or direct the vote: 4,592,245

            (ii)  shared power to vote or direct the vote: 533,350

           (iii)  sole power to dispose or to direct the
                  disposition of:  5,103,149

            (iv)  shared power to dispose or to direct the
                  disposition of: 22,446


   Item 5    Ownership of Five Percent or Less of a Class:
             -------------------------------------------- 
             Not applicable.

   Item 6    Ownership of More than Five Percent on Behalf of Another
             --------------------------------------------------------
             Person:
             ------
             Securities reported on this Schedule 13G are beneficially owned by
             clients of Dodge & Cox, which clients may include investment
             companies registered under the Investment Company Act and/or
             employee benefit plans, pension funds, endowment funds or other
             institutional clients.


   Item 7    Identification and Classification of the Subsidiary Which
             --------------------------------------------------------- 
             Acquired the Security Being Reported on By the Parent
             -----------------------------------------------------
             Holding Company:
             ---------------  
             Not applicable.

   Item 8    Identification and Classification of Members of the Group:
             --------------------------------------------------------- 
             Not applicable.

   Item 9    Notice of Dissolution of a Group:
             -------------------------------- 
             Not applicable.

   Item 10   Certification:
             ------------- 
             By signing below I certify that, to the best of my knowledge and
             belief, the securities referred to above were acquired in the
             ordinary course of business and were not acquired for the purpose
             of and do not have the effect of changing or influencing the
             control of the issuer of such securities and were not acquired in
             connection with or as a participant in any transaction having such
             purpose or effect.



                                   SIGNATURE

     After reasonable inquiry and to the best of my knowledge and belief,
I certify that the information set forth in this statement is true, complete
and correct.

Dated:  February 13, 1997
        -----------------
                                       DODGE & COX

                                       By:     /S/ W. TIMOTHY RYAN
                                          --------------------------------------
                                       Name:   W. Timothy Ryan
                                            ------------------------------------
                                       Title:  Senior Vice President
                                             -----------------------------------



                               PAGE 4 OF 4 PAGES