Nordstrom has announced plans to open 22 new Rack stores this year, with a focus on expanding its discount department stores as the company’s traditional name brand faces challenges. The expansion was revealed during the latest earnings call, where CEO Erik Nordstrom emphasized efforts to drive growth and profitability in areas such as new Rack store openings, digital growth for Nordstrom, and increasing comp store sales.
The Seattle-based retailer saw significant sales growth from Rack in the last quarter of 2023, with net sales up by 14.6% compared to the previous year while overall Nordstrom sales declined by 3%. In fact, nearly half of their new customers are generated through Rack.
This move signals a strategic shift towards prioritizing their discount department stores over their traditional brand. The expansion will take place in various states including California, Florida Georgia North Carolina Ohio Texas Arizona Illinois Indiana Nebraska New York and Tennessee.
