As an undergraduate student majoring in marketing, with a minor in fashion merchandising, the business of the fashion and apparel industry is extremely appealing to my career interests. After spending a summer working in this field as a retail intern for Nordstrom, not only did I gain considerable experience in the business of fashion retailing, but developed an interest in how Nordstrom consistently outperforms the numerous competitors in this great industry. Using Nordstrom as a case study, I explored the electronic commerce (e-commerce) trend that is on the rise for retailers of all merchandise lines, focusing on the apparel and accessories industry. This honors thesis is a culmination of my research of e-commerce and how it is implemented into retail businesses successfully, as well as an analysis of Nordstrom as a top retailer and prime example of successful e-commerce implementation. The impact of a multichannel strategy is assessed, using the analysis of Nordstrom data as support. My personal observations and experiences working for Nordstrom are incorporated into this thesis, and I offer recommendations for managing inventories and sales of both online and in-store transactions. Finally, I address the predictions for a successful future in retailing.