Top 20 Most Admired Companies

Nordstrom's customer service is legendary. But until recently the $8.5 billion retailer had been less of a standout in the trendsetting department. That's changed since Nordstrom purchased a majority stake in Jeffrey, which operates luxury boutiques in Manhattan and Atlanta.

Founder Jeffrey Kalinsky, who signed on to be director of designer merchandising, is quietly making Nordstrom a force in upscale fashion. Kalinsky has the full support of the Nordstrom brothers -- Blake, Peter, and Erik -- who serve as president, head of merchandising, and director of stores, respectively.

Nordstrom plans to open eight stores in 2008, more than double the new-store count of recent years. One caveat is the economy. Nordstrom's sales took a hit in the all-important fourth quarter, and the company expects further declines in early 2008.  -Suzanne Kapner