Nordstrom Rack’s off-price prowess and natural integration with the entire store fleet is a critical part of the company’s competitive advantage.
Evolving the customer journey is a key priority. That starts with enabling the shopper to discover premium brands. In turn, Rack, which counts 298 stores, then becomes the main acquisition tool for the full-line Nordstrom stores.
“Many times, customers discover great brands for the very first time at Nordstrom Rack and then will, once they fall in love with a brand, want to enjoy the entire breadth of the selection, lifestyle and services at our Nordstrom stores,” said Nordstrom Rack president Gemma Lionello. She explained that once customers shop both banners, they will continue to cross-shop, maybe at Rack for their kids and at Nordstrom for themselves.
The executive explained that the specialty retailer — first and foremost — must have “great brands at great prices” because that’s what draws customers in. That’s why brands like Max Studio and Calvin Klein (both mainstays at Macy’s, for example) can be found at Rack for their opening price points.
In addition to a deep selection of brands, customers shopping at Nordstrom Rack can take advantage of the off-price retailer’s services to initiate returns, pick up their packages and even order alterations, similar to what they might find at a full-line store or at Nordstrom Local, the company’s smaller-format service hubs.
As part of Rack’s omnichannel approach to service, its presence in 39 markets [where the company does not operate full-line stores] allows each store to offer the conveniences of the Nordstrom or Nordstrom Local experience.
“As an example, one-third of Nordstrom.com pickup orders are picked up at a Rack store. Customers can return their full-price purchases from Nordstrom or Nordstrom.com at a Rack store. We then worry about sending that merchandise back to our sister store,” Lionello said. “What we aim to do is make it seamless for our customer when it comes to convenience, and we want to make sure that they’re able to shop the way they want to shop.”
Sixty percent of digital returns are completed at a store, and in spring 2025, omni services for Rack.com purchases were launched, providing conveniences that customers have been enjoying in the full-price stores. Those services include buy online, pick up in a Rack store.
While Nordstrom’s loyalty programs are interconnected, the benefits are different. Nordy Club members earn Nordy Notes based on accumulated points from purchases. Members earn a $10 note for every 1,000 points, which can be used for future purchases. Rack customers who have a Nordstrom credit card instead receive a 5 percent discount instantly when making a purchase at a Rack store or on Rack.com. Other Rack loyalty benefits include Shop It First for flash events and early access to clearance sales or other special deals.
A look at the selection of women’s shoes at Nordstrom Rack at its NYC store at 31st Street and Sixth Avenue.
While Rack customers are willing to drive 45 minutes to get to a Nordstrom door, they prefer a Rack location to be within 15 minutes from their home. “That gave us permission and the confidence that we could have more locations,” Lionello said.
Lionello’s team also thinks about locality in how they curate merchandise and inventory for each region. “We need to make sure we don’t have the same offer when it comes to fabrications and color and weight,” she said. “If we’re buying for Texas or Florida, we’ll have lighter-weight materials, and [when stores are in] extreme cold areas, we go deeper on cold-weather coats, boots and scarves.” Because the Rack customer loves premium brands regardless of location, a hot brand or denim item — such as a Hoka sneaker or Frame jean — will be available in every market.
As Nordstrom marks its 125th anniversary, Rack is getting in on the action. “We are looking forward to some Rack-Up rewards events starting in the spring, certainly looking at a great event in the fall with 125 deals,” said Lionello.
She noted the team is still working on details for the deals, which likely will be spread over a “couple of weeks.” “We want it to be very meaningful for our customers and something that gets [them] excited, whether it’s online or in-store,” Lionello said, adding that the deals will involve the “really, really popular brands that the customer is going to be excited about.”
A look at the beauty selection at Nordstrom Rack.
Eugene Gologursky
The retailer — which has already announced 18 openings for 2026 so far — is committed to adding 20 to 25 new Rack locations, a goal that was put in place prior to Nordstrom Inc.’s go-private deal being struck in December 2024. (The deal was completed in May 2025.)
“I can tell you that we are planning to continue to grow every year, and we do aspire to go beyond that number,” Lionello said. “For us, it’s all about where our potential customer lives and where there are opportunities, because we’re more of a premium off-price retailer.”
