Nordstrom is becoming more and more like a discount store.
- Nordstrom reported an increase in same-store sales during the holidays.
- This growth was due, in part, to positive sales at its off-price store, Nordstrom Rack.
- These stores now outnumber Nordstrom's full-price stores in the US.
Nordstrom is turning into a discount retailer to boost sales.
This week, the luxury, century-old department store reported a 2.5% increase in same-store sales during the holiday period, thanks to strong sales at its off-price Nordstrom Rack stores.
Same-store sales at Nordstrom Rack stores increased 2.9% and its net sales were up 8.2%, while its full-price stores reported a more modest 1% increase in same-store sales.
Nordstrom has struggled recently. Same-store sales numbers have steadily declined since 2014 in its full-line stores. It has increasingly leaned on its off-price chain, Nordstrom Rack, for growth, and these off-price stores now outnumber Nordstrom's full-price locations. Given the success of Nordstrom Rack stores, it's likely we can expect to see more of them in the coming years.
We went to a Nordstrom Rack store in June last year to see if this truly is the future of the brand.