DISCUSSION

How High is Nordstrom Rack's Ceiling?

Written by George Anderson

Last year, Nordstrom announced its intentions to double the number of its Rack concept stores by 2016. The chain, according to a new report on WWD.com, is well on its way, planning to add 130 more Rack locations across the country including 24 this year and 30 in 2014.

The department store chain is comfortable with the expansion as it has found the discount Rack concept and its flagship stores can coexist peacefully. In March of last year, as reported on RetailWire, Nordstrom opened one of its Rack stores "one crosswalk over" from its flagship in downtown Seattle. While Rack customers skew younger than those who shop in the department store's flagships, 60 percent of the concept's shoppers also shop at Nordstrom.

While Rack is an off-price concept, Nordstrom service is still in evidence with features such as on-site tailoring. One of the goals Nordstrom has had for Rack since the beginning is to improve the off-price shopping experience for its customers.

Colin Johnson, a spokesperson for Nordstrom, told WWD that iPod Touch point-of-sale devices are installed in all Rack stores. "Service is defined by wait time. It's helped us get rid of wait time in the line," said Mr. Johnson who added that removing registers freed up more space for merchandise.

Nordstrom Rack is also looking to grow through e-commerce, said Mr. Johnson. "We see a lot of potential to create a more robust experience. We're very focused on that right now. We realize we have a way to go to make our online shopping capability a lot better," he told WWD.

Discussion Thread0