Nordstrom Media Network: how Nordstrom's retail media works

Nordstrom treats media fees as vendor support, not as sales. Its last annual report before going private says advertising "includes NMN, where vendors pay a fee for certain benefits, such as the use of our first-party data". Those funds reduce marketing costs, and any excess reduces cost of sales (Nordstrom 10-K, FY2024). Advertising allowances, which include NMN, were $97 million in fiscal 2024, plus $60 million above costs. This is the department store's old co-op advertising model in a data-driven form. It also explains why Nordstrom has published no media revenue line since the $40 million it cited for 2021.

The network spans two kinds of shopper. Nordstrom runs full-price department stores and Nordstrom Rack, its off-price chain. The company calls Rack its primary source of new customers, who often move to the Nordstrom banner over time (Nordstrom 10-K, FY2024). A brand can reach a shopper at Rack and again at Nordstrom.

Nordstrom sells experiences more than ad slots. VP Aaron Dunford said in-store is "a big initiative" because most sales still happen in stores. About 17 stores ran a curated "Swim Shop" with brands such as Maaji, and Nordstrom's stylists post brand content on their own social accounts (Modern Retail, 1 April 2025). Nordstrom says stylist-made content earns double the engagement of its usual content (company claim, same source).

Since 20 May 2025 Nordstrom is private (Nordstrom 8-K, 20 May 2025). It no longer files annual reports, so new facts come mainly from executives' conference remarks.

Onsite. Sponsored products and brand pages run on Nordstrom's websites and apps. Self-serve buying launched in 2025, starting with paid online placements (P2PI, 21 January 2026).

Offsite. Nordstrom first tested the network with offsite campaigns on platforms such as Google and Meta. The 2022 rollout listed paid social, display, YouTube video, search and affiliate. Nordstrom also co-creates long-form video with brands for connected TV (CTV).

In-store. Themed multi-brand shops, such as "Swim Shop" and "Alpine Bound", and events form the in-store offer. During the 2025 holiday season Nordstrom offered free Santa photos it described as "brought to you by retail media" (P2PI, 21 January 2026). The in-store retail media guide explains how such activations are counted.

Nordstrom serves targeted ads based on individual purchase and behavioural data (P2PI, 9 March 2022). Its loyalty program, The Nordy Club, uses points and benefits. Brands pay for the use of first-party data; they do not receive customer records.

Nordstrom has not published its measurement method. Its 2022 earnings remarks described the aim as more traffic, sales and engagement for brand partners (Nordstrom, 1 March 2022). Ask whether results are closed-loop across stores and online, since in-store sales dominate. Compare the answers with retail media measurement standards explained.

1. Contact Nordstrom Media through your Nordstrom buyer or brand partnership team.
2. Define the goal first. Nordstrom builds custom plans rather than selling packages.
3. Use self-serve for search placements if you want to manage paid online ads yourself.
4. Add stores and stylists for launches: themed shops, events and stylist content.
5. Agree measurement in writing, including store sales and the reporting cadence.

It suits:

• premium fashion, beauty and accessories brands sold at Nordstrom or Rack;
• brands that value creative storytelling and store presence;
• advertisers wanting both full-price and off-price shoppers.

It suits less:

• brands seeking cheap, standard ad units at scale;
• advertisers who need published measurement methods.

• Media revenue after 2021, and the NMN share of advertising allowances.
• The onsite ad-tech platform; a job posting names Criteo, but no Nordstrom source does.
• The measurement method and any third-party verification.
• The name and scope of the self-serve tool.

1. Nordstrom, Inc., Form 10-K for fiscal 2024 (filed 21 March 2025). https://www.sec.gov/Archives/edgar/data/72333/000007233325000039/jwn-20250201.htm
2. Nordstrom, Inc., Q4 2021 earnings call prepared remarks, Form 8-K Exhibit 99.2 (1 March 2022). https://www.sec.gov/Archives/edgar/data/72333/000007233322000006/jwn-q42021earningsscript.htm
3. Nordstrom, Inc., Form 8-K on completion of the merger (20 May 2025). https://www.sec.gov/Archives/edgar/data/72333/000110465925050982/tm2515470d12_8k.htm
4. Path to Purchase Institute, "Nordstrom Rolls Out In-House Media Network" (9 March 2022). https://p2pi.com/nordstrom-rolls-out-house-media-network
5. NRF, "Off-site retail advertising takes off" (15 January 2025). https://nrf.com/blog/off-site-retail-advertising-takes-off
6. Modern Retail, "How Nordstrom uses in-store displays and social content to build its retail media business" (1 April 2025). https://www.modernretail.co/marketing/how-nordstrom-uses-in-store-displays-and-social-content-to-build-its-retail-media-business/
7. Path to Purchase Institute, "How Costco, Best Buy, Nordstrom Are Evolving Retail Media" (21 January 2026). https://p2pi.com/how-costco-best-buy-nordstrom-are-evolving-retail-media