Chris, I understand your shock and frustration given the Nordstrom reputation. This is a symptom of the serious issues retailers are facing. Department stores and their famous service may well be a thing of the past. That is most definitely the Australian experience, our department stores have been contracting in their market share for years and have been operating at a loss for a number of years. As they try to return to profitability through cutting back on staff, less store renovations and cheaper products, things have gone from bad to worse.
Most Australian retailers (similar to those in NZ) do not allow refund returns, or if they do, in a very narrow window and on full price stock. Returning items is just not something we do on a regular basis, even when ordering online because in many cases we have to pay up to A$50 (US$30) for the privilege of shipping. Given the demise of so many retailers locally, we have accepted a scaled back retail experience.
I feel sad for you and also sad for Nordstrom that things have come to this in the US.