Nordstrom Inc. will open its first Rack store in Tacoma next year as off-price retailers increasingly gobble up a larger slice of the market.
Nine out of 10 adults in the United States shop at discount retailers, according to the International Council of Shopping Centers, which notes that the stores are wildly popular among all demographic segments.
Ross Stores Inc., for instance, said it plans to open 42 new stores during its fiscal third quarter after opening 28 in the second quarter. Another discount retailer, TJX Cos. – which operates T.J. Maxx and Marshalls stores, among others – said it has experienced 20 consecutive quarters of increased foot traffic at its stores.
Nordstrom’s 30,000-square-foot Tacoma store will open next fall at Tacoma Mall. The Seattle-based retailer has operated a full-line store in the city since 1966.
Nordstrom has been opening off-price Rack stores at a much faster pace than full-line stores the past several years. It operates 248 Rack stores and 378 full-line stores. Nordstrom says prices at Rack locations are up to 70 percent off many items at the company’s regular department stores.
In the company’s earnings call with investors last month, Co-President Erik Nordstrom admitted Rack sales fell short of expectations last quarter, but said the company is “accelerating marketing efforts” to drive traffic, including launching a Nordstrom Rack TV branding campaign.
Earlier this month, Nordstrom announced it would open a Nordstrom Rack in Langley, British Columbia, next spring.