Nordstrom is banking on the popularity of its discount stores with a second off-price location in New York.
Sharing sidewalk space with the popular Macy’s and Target megastores, New York’s second Nordstrom Rack location opened last week in Herald Square. At 47,000 square feet, the outlet version of the popular department store will sell off-season clothes and shoes by designers such as Coach, Michael Kors and Diane Von Furstenberg at outlet prices.
At a time when large department stores have been increasingly struggling to bring in sales, Nordstrom has been faring better; some of its competitors have had to shut down stores. In an effort to continue to expand and turn a profit, Nordstrom has been focusing on expanding its outlet stores (the company plans to open six Nordstrom Rack stores in Canada in 2018) and ramping up digital.
Nordstrom Rack, which opened its first New York location at Union Square in 2009, has seen growth in sales on discounted designer clothes and shoes even as sales at the regular department store have slumped.
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Nordstrom also had to postpone plans to sell the company to a private buyer until after the holiday season following a struggle to find someone to shell out the reported $9 billion price tag.
