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Beginning June 3, Nordstrom’s The Nordy Club members will no longer be able to earn loyalty points for purchases made at Nordstrom Rack’s stores or on nordstromrack.com.
Instead, members will be eligible for a 5% discount for purchases at Nordstrom Rack as well as its website when they use their Nordstrom credit card on eligible purchases, according to an update. Other payment methods will not feature the discount.
A similar change was made for purchases at Nordstrom’s Last Chance clearance stores. At the close of 2024, the retailer operated 277 Rack, two Last Chance, and 92 full-line Nordstrom locations. It also operated six Nordstrom Local service hubs.
Nordstrom said the credit card discount will enable Rack customers to more quickly benefit from their purchases, with the move also providing differentiation for Nordstrom Rack.
“We are excited to evolve The Nordy Club and introduce exclusive benefits to Nordstrom Rack customers, delivering great brands at great prices with even more perks each time they shop with us,” said Deniz Anders, Nordstrom’s EVP and chief marketing officer, in a statement sent to Retail Dive and TheStreet. “The new benefits offer our Nordstrom Rack customers more value, providing instant discounts, special promotions, and early access to new arrivals.”
Under the current Nordy Club program, members earn one base point per $1 net spend across banners. The earned points are converted to Nordstrom Notes, which are like gift cards and can be used for purchases at Nordstrom or Rack. Accumulating 1,000 points, for instance, equals $10 in Nordstrom Notes.
Members earn points faster during bonus points events, when they make a purchase with their Nordstrom credit or debit card, and as they reach higher member status levels.
Nordy Club members also enjoy experiential awards such as early access to sales and invitations to special events.
Retailers are increasingly emphasizing experiential rewards, although points, cash back, discounts, and other transactional perks remain core drivers of enrollment and retention.
Correction: Customer spend at Nordstrom Rack under the updated program will still count toward their loyalty status (Influencer, Icon, Ambassador, etc.) if they’re a Nordy Club member or cardmember, and Nordstrom Notes are still redeemable at Nordstrom Rack. An earlier version of the article indicated that Nordy Club member purchases at Rack would no longer count toward their loyalty status.