In less than 2 hours, Nordstrom Rack opens in New York’s Union Square. The store occupies the basement of the former Virgin Megastore and is a few doors down from another off-price store, Filene’s Basement.
Nordstrom Rack’s entry to Manhattan marks the first NYC store for the retailer, who has also been seeking out space for a mainline department store which hasn’t happened. I think this is pure reflection of the times. I would have loved to see a Nordstrom department store appear first before Nordstrom’s off-price outlet (though I am not opposed to 50-60% off retail). The customer is getting so used to more for less that off-price retailers are doing quite well in this economy and I’m sure we’ll be seeing a lot more off-price business emerge. Bloomingdale’s is opening off-price outlets this Fall and I’m sure other retailers with existing strategies – like Saks Off 5th aren’t too far off from a NYC locale.