Nordstrom Opens Outlet Next to Flagship
Typically, department store retailers place their flagship locations in a major mall or prime downtown location. Discount outlets are often miles away in a complex housing other chains’ or manufacturers’ overstocks and irregular items.
Well, not that it’s new news, but Nordstrom is not your typical retailer. The company has proved that once again by opening one of its Rack stores a “crosswalk” away from its flagship in downtown Seattle.
Blake Nordstrom, president of the chain, told The Seattle Times, “What we’ve learned is that our Racks do well when they’re closest to our flagships.”
Geevy Thomas, president of Nordstrom Rack, said that around 60 percent of his division’s customers also shop at Nordstrom’s flagship stores.
“Many of our customers who’d like to try a new brand have the opportunity to do so at 40 to 60 percent off at the Rack,” Mr. Thomas told the Times.
“And when they get accustomed to certain brands, they want the newest, latest, greatest thing. That’s when they go across to our full-line store and get it the day it comes out,” he added.
Reports from a number of sources indicate the decision to relocate the Rack store has gotten off to a good start. Around 550 shoppers were on hand when the store opened for business last Thursday.
- Nordstrom Rack ready to open near downtown Seattle flagship – The Seattle Times
- Roaring start for the Rack at Westlake – The Seattle Times
- Opening Seattle’s new Nordstrom Rack: Rain, doughnuts and designer deals – Puget Sound Business Journal
- Nordstrom Rack opens in Westlake Center tomorrow – Seattle Post-Intelligencer
Discussion Questions: How do you think Nordstrom’s decision to open a Rack store a “crosswalk” away from its flagship store will affect sales in the dual locations? Do you see other department stores or specialty chains doing something similar?