Discount-lovers will rejoice to find the high-end fashion retailer Nordstrom will be adding a considerable amount of Nordtrom Rack stores in the near future.
Just this year, the discount Rack stores topped the original Nordstrom stores by a hair (121 Rack stores nationwide versus 117 Nordstrom stores), but by 2016, the retailer plans to skyrocket their discount store count to 230 versus a mere 128 Nordstrom stores, which will more than double what was around last year and likely change the face of one of the most prominent upscale retailers around.
The move to up their discount game came in full force as the recession hit; the retailer decided that surviving meant offering lower prices in tough economic times. But as the recession has more or less died down (kind of), Nordstrom has a new goal: to breed a new generation of consumer.
The Nordstrom Rack stores particularly attract younger shoppers, who love getting a sweet deal (obviously) on an upscale item that would normally cost much more. Hooking and baiting these younger consumers now means that as they grow older, they will stick with the retailer and possibly graduate to the full-priced Nordstrom stores — or so the retailer hopes.
Adding more discount stores might also drastically change the face of a retailer we’ve always known to be high-end, and Nordstrom risks dipping a bit too much in the discount pool, if you will, perhaps joining those ever-struggling stores like J.C. Penney and Talbots in marked-down limbo.
However, if Nordstrom’s calculations are correct — and this decision looks nothing like their $40 million “Reinvent Yourself” campaign back in 2000 that actually just forced the store to reinvent itself — this could be one of the most genius moves yet. And, well, we do love our discounts.
Is Nordstrom’s decision to add more Rack stores a smart move?
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