DISCUSSION

Does Nordstrom Rack Need To Rebrand?

Written by Tom Ryan

Photo: Nordstrom

Nordstrom Rack, celebrating its 50th anniversary, has rolled out a new logo inspired by the one used in the ‘70s and ‘80s to differentiate the off-price chain from its competitors better. “The refreshed Nordstrom Rack brand identity reflects the authentic, empowered and expressive spirit of our customers and communicates the ‘more-ness’ of the Rack -- more fashion, more of their favorite brands, more deals, more access in store and online,” Red Godfrey, VP of creative at Nordstrom, said in a press release. He told Advertising Age that Rack’s “old identity system had become a bit similar to what else is out there.” The curved letterforms and brighter palette “suggest a turn towards a louder, more confident brand expression,” according to Itsnicethat.com, a site for illustrators. [embed]https://www.youtube.com/watch?v=itha9JMxdO0&t=1s[/embed] The updated logo, which will eventually be featured on all new and remodeled stores, more closely aligns the Nordstrom full-line and Rack brands, illustrating the company’s interconnected business model. Nordstrom’s off-price business has long been its biggest contributor of new customers and sales compound when customers shop both concepts. Ninety percent of the top 50 brands at Nordstrom’s full-price stores are also carried at Rack. Nordstrom plans to open 20 Rack locations this year despite underperforming for a few years. Rack’s fourth-quarter same-store sales fell eight percent due to weakness from lower-income customers, although the leading off-pricers, TJX Cos. and Ross Stores, managed positive gains over the period. Rack continues its renewed emphasis on “premium” offerings after a past approach to bring in lower-priced items to reach a wider audience didn’t resonate with the chain’s core customers. On Nordstrom’s fourth-quarter call with analysts, Erik Nordstrom, CEO, reiterated that Rack’s fans are seeking “newness” over deals that can be found elsewhere. “We are prioritizing 100 nationally recognized strategic brands to help us drive sales and grow market share,” he said. “Simply put, we know we win with customers at the Rack when we deliver great brands at great prices. We believe strong brand recognition drives outsized customer engagement, and these brands are proven performers, many of which are not widely available in the off-price space.”

Discussion Thread0