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Nordstrom Rack

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Nordstrom Rack is Nordstrom's off-price retail chain, selling branded apparel, footwear, accessories, and home merchandise at reduced prices.

Last updated August 21, 2026

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Overview

Nordstrom Rack is the off-price retail division and sister brand of Nordstrom, Inc., the American department-store company. It operates as a value-oriented counterpart to Nordstrom's full-line department stores, offering customers access to designer, premium, and contemporary merchandise at prices generally below traditional department-store levels. Its assortment includes apparel, shoes, accessories, beauty products, and selected home merchandise, with inventory supplied through a combination of marked-down merchandise, specially purchased goods, and other off-price retail channels where documented by the company or reference sources. The concept began in 1973 in Seattle as a clearance outlet connected to a full-line Nordstrom store. The first Nordstrom Rack location occupied the basement of Nordstrom's downtown Seattle store, making the original format an outlet for clearing excess and end-of-season inventory rather than a fully separate national chain. Over time, the concept developed into a distinct off-price store format with its own retail identity and a substantially broader store network. Nordstrom Rack's positioning is based on the combination of recognizable brands, fashion-oriented merchandise, and discount pricing. This differentiates it from both conventional department stores, which typically sell current-season assortments at regular prices, and more general discount retailers, whose selections may be less closely associated with premium or designer labels. The format is designed for shoppers seeking value while retaining an association with Nordstrom's broader fashion and service heritage. Digital retail became an important part of the brand's development. In February 2014, Nordstrom Rack launched its e-commerce website on a platform shared with HauteLook, Nordstrom's flash-sale business. Nordstrom had acquired HauteLook in 2011, and the shared technology infrastructure connected Nordstrom's off-price and digital discount operations. The online channel expanded the brand beyond its physical stores and gave customers access to Rack merchandise through a dedicated digital storefront. Nordstrom Rack became a significant part of Nordstrom, Inc.'s overall business. Reference material states that the division represented approximately one-fifth of Nordstrom's overall sales and had generated more than $2.5 billion in sales since 2013. Those figures are presented without a specific reporting-period context in the supplied material and are therefore not treated as current financial data here. The brand's store footprint reached 348 locations in 41 U.S. states as of 2023. The chain also made a limited move beyond the United States. On March 22, 2018, it opened its first Canadian store, marking Nordstrom Rack's first international market. Nordstrom subsequently exited Canada, and all seven Canadian Nordstrom Rack stores closed on May 14, 2023. The closures left the United States as the brand's operating market in the supplied reference material. Nordstrom considered a possible separation of Nordstrom Rack from the parent company in 2021. A report dated December 20, 2021, said Nordstrom was considering spinning off the business into a separate company. The reference does not establish that a spin-off was completed, so Nordstrom Rack is described here as a Nordstrom, Inc. sub-brand. Its defining role remains that of an off-price extension of the Nordstrom retail portfolio, combining a national store network with e-commerce and a value-focused merchandise proposition.

History

Nordstrom Rack began in 1973 in Seattle as a clearance outlet operated in the basement of a downtown Nordstrom full-line store. The initial purpose was to sell clearance merchandise associated with Nordstrom's department-store business. Rather than beginning as an independent discount retailer, the format emerged as an outlet extension of an established department-store operation. The concept subsequently developed into a separate off-price chain under the Nordstrom Rack name. Its role within Nordstrom's portfolio was to address value-conscious shoppers while maintaining an association with the parent company's fashion and branded-merchandise heritage. The chain's assortment came to include clothing, shoes, accessories, and home goods, with an emphasis on designer and premium brands sold at reduced prices. Nordstrom Rack expanded its digital presence in February 2014, when it launched an e-commerce website. The site was built on a shared platform with HauteLook, a flash-sale business acquired by Nordstrom in 2011. This integration linked the Rack format with Nordstrom's existing digital off-price infrastructure and gave the brand a dedicated online sales channel. The business became a material component of Nordstrom, Inc. Reference material describes Nordstrom Rack as contributing approximately one-fifth of the parent company's overall sales and states that it generated more than $2.5 billion in sales from 2013 onward. Because the supplied source does not provide a precise reporting period for those figures, they are included only as historical context rather than as current financial metrics. By 2023, Nordstrom Rack operated 348 stores across 41 U.S. states. The brand's first international expansion occurred in Canada. On March 22, 2018, Nordstrom Rack opened its first Canadian store. The Canadian operation ultimately comprised seven stores, but the expansion was later reversed when Nordstrom exited Canada. All seven Canadian Nordstrom Rack locations closed on May 14, 2023. Nordstrom's corporate relationship with the brand was reviewed in 2021. On December 20 of that year, reporting indicated that Nordstrom was considering spinning off Nordstrom Rack into a separate company. The supplied reference does not establish that a separation was completed. Accordingly, Nordstrom Rack remains classified in this dossier as a Nordstrom, Inc. sub-brand and off-price retail division. The brand's history is therefore defined by a progression from a single in-store clearance outlet to a large American off-price chain with a dedicated online channel and a substantial store footprint. Its principal retail proposition has remained consistent: make branded and premium merchandise available through a discount-oriented format associated with Nordstrom.

  • 2023

    Canadian operations close

    [1]

    All seven Canadian Nordstrom Rack stores close on May 14 after Nordstrom's withdrawal from Canada.

  • 2021

    Possible corporate separation considered

    [1]

    Nordstrom is reported to be considering a spin-off of Nordstrom Rack into a separate company.

  • 2018

    First Canadian store opens

    [1]

    Nordstrom Rack opens its first Canadian store on March 22, beginning its international expansion.

  • 2014

    Nordstrom Rack launches online retail

    [1]

    The brand launches its website in February on a platform shared with HauteLook.

  • 2011

    Nordstrom acquires HauteLook

    [1]

    Nordstrom acquires HauteLook, whose technology platform later supports the Nordstrom Rack e-commerce operation.

  • 1973

    First Nordstrom Rack outlet opens in Seattle

    [1]

    Nordstrom opens the first Rack location in the basement of its downtown Seattle full-line store as a clearance outlet.

Products and positioning

Off-price department-store retail offering designer, premium, and contemporary brands at discounted prices.

  • Clothing · 1973

    Apparel

    Nordstrom Rack's apparel assortment includes clothing sold through its off-price store and online formats. The brand's value proposition centers on making designer, premium, and contemporary merchandise available at reduced prices compared with conventional full-line department-store retail. The supplied reference identifies clothing as a core product category but does not provide a detailed breakdown by gender, season, or label.

  • Shoes · 1973

    Footwear

    Footwear is one of Nordstrom Rack's principal merchandise categories. Stores and the website offer branded and premium shoes through the chain's off-price model. The category supports the brand's broader positioning as a fashion-oriented alternative to general discount retail, although the supplied material does not specify particular labels or product families.

  • Fashion accessories · 1973

    Accessories

    Nordstrom Rack sells fashion accessories as part of its branded discount assortment. This category complements apparel and footwear and is consistent with the chain's department-store-derived format. Available reference material confirms the category but does not identify a complete list of accessory types or any individual flagship product.

  • Home

    Home merchandise

    Selected home goods form part of Nordstrom Rack's broader assortment. The category extends the brand beyond fashion while retaining the off-price department-store model. The supplied sources do not provide enough detail to identify specific home departments, product lines, or launch dates.

  • E-commerce · 2014

    Nordstrom Rack online assortment

    The Nordstrom Rack website provides a digital channel for the brand's off-price merchandise, including apparel, footwear, accessories, and other categories. Launched in 2014 on a platform shared with HauteLook, it extended the Rack proposition beyond physical stores and connected it to Nordstrom's existing digital discount infrastructure.

Brand decisions

  • 2023

    Withdrawal from CanadaStrategy

    Background

    Nordstrom decided to exit the Canadian market, affecting both its full-line retail operations and Nordstrom Rack locations.

    Action taken

    All seven Canadian Nordstrom Rack stores closed on May 14, 2023.

    Aftermath

    The closure ended Nordstrom Rack's Canadian presence and left the United States as the operating market identified in the supplied material.

  • 2021

    Consideration of a Nordstrom Rack spin-offStrategy

    Background

    Nordstrom Rack had become a substantial part of Nordstrom, Inc.'s business, with reference material describing it as contributing about one-fifth of overall sales.

    Action taken

    Nordstrom was reported on December 20, 2021, to be considering spinning off Nordstrom Rack into a separate company.

    Aftermath

    The supplied references do not confirm that a spin-off was completed. Nordstrom Rack is therefore retained in this dossier as a Nordstrom, Inc. sub-brand.

  • 2018

    Entry into the Canadian marketStrategy

    Background

    Nordstrom Rack had developed a substantial U.S. store network and sought to extend the off-price format outside its home market.

    Action taken

    The brand opened its first Canadian store on March 22, 2018.

    Aftermath

    The Canadian operation later reached seven stores but ended when all locations closed on May 14, 2023 after Nordstrom exited Canada.

  • 2014

    Launch of the Nordstrom Rack e-commerce siteProduct launch

    Background

    Nordstrom Rack had historically operated primarily as a physical off-price outlet and chain. Nordstrom's acquisition of HauteLook in 2011 provided a digital platform that could support the Rack business.

    Action taken

    Nordstrom launched a dedicated Nordstrom Rack website in February 2014 using a platform shared with HauteLook.

    Aftermath

    The launch gave Nordstrom Rack a direct online sales channel and strengthened the connection between its physical off-price stores and Nordstrom's digital discount operations.

Recent events

  • Reported

    Nordstrom Rack opens Lakewood store[3]

    Nordstrom Rack opened a new 24,000-square-foot retail store in the Denver West Village shopping center in Lakewood, Colorado.

  • Reported

    Nordstrom Rack announces planned Atlanta store[4]

    Nordstrom, Inc. announced plans on Oct. 20 to open a 28,000-square-foot Nordstrom Rack store at Atlantic Station in Midtown Atlanta.

  • Reported

    Nordstrom reports fourth-quarter 2020 earnings[5]

    Nordstrom, Inc. reported fourth-quarter 2020 earnings, including earnings per diluted share of $0.21 and a 20 percent decrease in net sales. It reported continued sequential sales improvement across Nordstrom and Nordstrom Rack.

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