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cheapbag214s
Posted: Wed 22:05, 04 Sep 2013
Post subject: Nordstrom outlet works in tandem with flagship sto
Nordstrom outlet works in tandem with flagship store,
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After 25 years,
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, that old Nordstrom Rack location in downtown Seattle closed for good last weekend included in its move only one crosswalk over from Nordstrom's flagship.
By putting them side by side,
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, Seattle-based Nordstrom is challenging the traditional wisdom that a retailer's full-price and off-price stores cannibalize each other.
President Blake Nordstrom recalls how retail experts questioned the business's decision in the 1970s to produce the Rack business inside its downtown store, but the company has since opened 105 stand-alone Racks nationwide.
"What we've learned," Nordstrom said, "is our Racks do well when they're nearest our flagships. We think there's a great synergy."
The Seattle Rack's move is part of an aggressive growth technique for the discount business. Nordstrom plans greater than a dozen additional Racks this season, bringing the entire to 119. By comparison, the organization plans one additional full-price store,
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, for 117.
Which means Nordstrom is poised to operate more Racks than flagships the very first time in the 111-year history,
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, a milestone not lost on retail-industry experts.
Consultant Jeff Green recalls that the Rack was a bright spot for Nordstrom throughout the darkest times of the recession. While sales plunged at Nordstrom's full-price stores, the Rack posted much-needed gains.
"The minute the economy turned south, Nordstrom said, 'No more full-line stores except for those already being built,
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, and let's focus on the Rack,'" Green said.
"They had a backup for the downturn,
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, and it was the Rack."
But placing a discount store next to a flagship takes Nordstrom outside the industry's norm. Neither Neiman Marcus nor Bloomingdale's puts its outlet stores alongside its flagships,
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.
"The old theory was why,
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, for those who have a core consumer who loves you,
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, can you erode her respect for you by displaying cheap stuff? Why would she ever return to paying top dollar?" said New York retail consultant Kate Newlin.
"But the Rack is really a well-enough presented experience that they're pretty confident both can coexist without eating one another's lunch."
With almost all of its merchandise on one floor, the new Seattle Rack is made to make shopping faster and more convenient, reflecting a major corporate emphasis.
Gone may be the "shoe mate" window, where customers waited in line for that partner of a pair to accomplish an order. Now boxes contain both halves, so shoppers can grab and go.
The new Rack also will put 16 mobile checkout devices into the hands of sales clerks to reduce on lines in the register.
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