- Nordstrom is increasingly leaning on its off-price concept, Nordstrom Rack, for growth.
- These discount stores now outnumber its full-price locations. Nordstrom operates 239 Rack stores and 122 full-line stores in the US and Canada.
- TJ Maxx, meanwhile, has reported strong same-store sales numbers for several years using a similar discount model.
- We compared the shopping experience at a Nordstrom Rack and a TJ Maxx to find out which off-price store is better.
Off-price shopping is on-trend.
TJ Maxx is a shining example of what is working in today's brick-and-mortar shopping environment. The US's largest off-price chain has reported strong same-store sales numbers for several years while department stores look on enviously, reporting weaker sales and being forced to close locations.
Rather than lose out to the off-price channel, some department stores are working on creating their own versions — for example, Macy's is doubling down on its Backstage concept.
But Nordstrom's off-price offshoot, Nordstrom Rack, predates TJ Maxx by three years. It was launched in 1973 in the basement of one of its full-price stores in Seattle, selling its clearance clothing. In recent years, Rack has become one of the biggest areas of growth for the company, and these stores now outnumber Nordstrom's full-price locations.
After putting Macy's off-price concept to the test in June, we decided to see how Nordstrom Rack fared in comparison to TJ Maxx. Here's what we found:
We headed to a Nordstrom Rack in Manhattan's Union Square on a sunny afternoon in July.
Much like TJ Maxx, Nordstrom Rack sells designer brands at a 30-70% discount.
The layout of the store felt a lot like a TJ Maxx ...
... as did the accessories section. Cheaper jewelry hung from racks, and more-expensive pieces were locked in a cabinet.
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