Why are Nordstrom racks so cheap? (10 reasons)
Nordstrom Rack is the discount arm of Nordstrom, featuring designer items that are 70% cheaper than Nordstrom stores.
It is a port of call for everyone looking for quality and designer products at great prices. But how can Nordstrom Rack sell its products so cheaply. Read on to see what we found!
Why is Nordstrom Rack so cheap in 2022?
Nordstrom Rack keeps prices low by stocking up on Nordstrom’s excess inventory at deep discounts. It also stocks low-cost products made specifically for stores. The lean store organization and quality of customer service also keep prices cheap. In addition, low prices lure customers into stores, encouraging them to spend more.
Read on to find out how Nordstrom Rack managed to keep prices so low, even though it occasionally stocked designer items!
1. Nordstrom’s Excess Inventory
Full-price stores at Nordstrom can be expensive, especially designer items. Also, most of these items are seasonally related and the unsold quantities are large.
This overstock is shipped to Nordstrom Rack, where it’s sold at deep discounts of 30% to 80% or more.
That said, with patience and savvy shopping, it’s possible to find designer items at one-off prices.
These huge discounts make Nordstrom Rack’s prices very cheap and attractive.
2. Low-priced items
In addition to excess inventory at full-price Nordstrom stores, low-cost products are made exclusively for Nordstrom Rack. In some cases, these items make up the bulk of its inventory.
Also, the brands made exclusively for Nordstrom Rack are made by well-known companies and are of high quality, yet inexpensive.
3. Discounts and Promotions
Nordstrom Rack offers massive discounts on its merchandise, especially those sourced from mainline Nordstrom.
In some cases, these discounts are as high as 70%, which is a steep drop in price, and you can get $200 of designer items for just $60.
No doubt, as long as you shop smart, Nordstrom Rack’s items are the most sought-after items.
But even better, Nordstrom Rack offers frequent promotions to make room for incoming stock from mainline Nordstrom.
In these shelf clearance sales, prices drop further, with other discounts plus a 25% clearance discount.
For example, a $200 designer item is further reduced from $60 to $45; that’s the price at Nordstrom Rack!
4. Nordstrom Rack has a leaner store organization
Mainline Nordstrom bills itself as a first-class store, and its design and layout reflect that.
That said, the store is full of space and light, and every item stands out.
Some Nordstrom department stores even have restaurants to enhance the customer experience.
Additionally, Nordstrom Rack has plenty of space and light, but the design is designed to facilitate faster passage through the store.
For example, display items close to each other so customers can see them at a glance.
This leaner display costs less in terms of overhead and allows Nordstrom Rack to keep prices low.
5. Nordstrom Rack has a leaner customer experience
Nordstrom Rack’s customer service is as effective as Nordstrom’s mainline service, but not nearly as personal and focused.
Instead, its larger focus is on helping buyers move through many products as quickly and efficiently as possible.
Instead of taking you to an item and offering to check it, they point you to the product you want.
As a result, Nordstrom Rack stores require fewer salespeople, reducing overhead costs and making merchandise cheaper.
6. Nordstrom Rack Features Use Reworked Products
Some of Nordstrom’s products include items returned for some reason.
So, if they’re not too badly damaged, Nordstrom tries to refurbish them to as close to perfect condition as possible.
These are then shipped to Nordstrom Rack, which sells for a lot less. Luckily, they don’t always start out in shabby condition and come out beautifully once redone.
Nordstrom Rack marks these items as refurbished, but that alone won’t put you off, as there’s no shortage of treasures among them if you look closely.
7. Nordstrom uses cheap prices as a loss leader
In addition to using low prices to help clear overstock at Nordstrom’s mainline stores, Nordstrom Rack uses them to lure people into stores, where they spend more.
This is a common strategy for most retailers.
For example, they use some attractive products offered at low prices to lure buyers into the store, where they are also introduced to other products and encouraged to buy.
The money earned from buying other products justifies the low prices charged to loss leaders.
So while the loss-leader pricing is unprofitable, Nordstrom Rack’s low-priced items are profitable and only reward the loss-leader role.
8. Nordstrom Rack only offers low- and mid-priced brands
Nordstrom Rack Mainline Nordstrom doesn’t overstock all items from low-to-mid-priced brands that are not yet established.
That said, these brands are willing to charge lower prices for their products to help them gain a foothold in the market, which helps keep Nordstrom Rack prices low.
9. Nordstrom Rack does not offer custom services
Unlike mainstream products, Nordstrom Rack does not offer custom services on its premises.
This way, the customer receives the item as is, and they must be careful to choose the fit that is as accurate as possible in all respects.
However, Nordstrom Rack offers repair services for damaged purchases at some stores. Therefore, omitting custom services helps keep prices low.
10. Nordstrom Rack sells used items
In 2020, Nordstrom began selling used clothing, including clothes, shoes and accessories, to customers.
So, while the store will wash and repair items, they can’t cost the same as brand new.
To learn more, you can also read our posts on why Nordstrom is so expensive, Nordstrom Rack, and Nordstrom Local.
in conclusion
Nordstrom Rack, the mainline Nordstrom counterpart designed to help deal with the total price backlog in an affordable but profitable way, has done so successfully.
In addition to overstocking, it also carries items made specifically for it and sold at low prices.
