Nordstrom has plans to open more of its offprice operations across the United States in the year ahead, even as it drives the e-commerce element of the bargain business.
In the second half of 2023, the company announced it would open new Nordstrom Rack locations nationwide including:
- Queen Creek, AZ, at 28,000 square feet, opening in spring 2024.
- Bay Shore, NY, at 24,000 square feet, opening in spring 2024.
- San Diego, CA, at 26,000 square feet, opening in fall 2024.
- Mason, OH, at 30,000 square feet, opening in fall 2024.
- San Antonio, TX, at 25,000 square feet, opening in fall 2024.
- Mooresville, NC, at 28,000 square feet, opening in fall 2024.
- Franklin, TN, at 24,000 square feet, opening in fall 2024.
- Noblesville, IN, at 25,000 square feet, opening in fall 2024.
- Omaha, NB, at 30,000 square feet, opening in fall 2024.
- Houston at 34,000 square feet, opening in fall 2024.
By the end of Nordstrom’s third quarter, the company had added or relocated 20 Rack stores for a total of 258 Rack locations.
Previously announced Rack store openings for the spring are in Pinole, CA; Kennesaw, GA; Elk Grove, CA; Oceanside, CA;, Wheaton, IL; Snellville, GA; Macedonia, OH; and Jacksonville Beach, FL. The company has slated a Rack opening in Davis, CA, for Spring 2025.
In a conference call discussing third-quarter results, Erik Nordstrom, Nordstrom CEO, said Rack stores are a solid investment for the company, delivering returns well in excess of their cost of capital with a short payback period. In accordance with the company’s strategies behind Rack stores from the outset, which included engaging consumers who might be wary of Nordstrom department store prices, the offprice operations remain the largest source of new customer acquisition for the overall enterprise.
Erik Nordstrom pointed out that the scale of the Rack digital operation is differentiated and unique, allowing the company to serve consumers via omnichannel offerings in a way that other off-price retailers don’t. He added the company still has work to do on Rack digital offering, and it is making progress as it reworks the business model to ensure sustained profitability. Rack digital is now profitable on a year-to-date basis, and the company expects it to continue to be profitable for the full year, Nordstrom said.
