Off-price domination continues as department stores yield more share

This week, Nordstrom announced that in the fall it will open its 25th Rack store in Texas and its seventh in Georgia, the latest in the steady build-out of its off-price business in recent years. As of Feb. 1, the company runs 277 Rack locations — 19 more than the year before — and 92 full-line locations — down one from last year. CEO Erik Nordstrom has called Rack stores “a growth engine for our company,” the largest source of customer acquisition and important for long-term customer retention.

Other department stores are also pushing further into off price. Macy’s, which has been shuttering stores for years, over the weekend said it will add seven more Backstage off-price shop-in-shops this month, closing in on 300 stores with space dedicated to Backstage, plus five stand-alone Backstage stores. This year regional department store Belk will add to its outlet fleet, launched two years ago.

Off-price domination continues as department stores yield more share | Retail Dive

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