Nordstrom Rack announces 2 new store openings in Long Island

Nordstrom Inc. is shifting its focus to its Nordstrom Rack off-price chain to improve profitability amid challenges faced by its luxury stores. The company has announced plans to open two new Nordstrom Rack stores in Long Island, specifically in Lake Grove and Holbrook. Currently, there are three Nordstrom Rack locations on Long Island, including one in Bay Shore that opened in June.

With consumer preferences shifting towards discount stores and away from traditional full-price luxury retailers, Nordstrom is aiming to open 20 to 25 new stores annually. This year alone, the company has already opened 23 new Rack stores in various states to meet the growing demand.

Despite facing financial difficulties this year, with net earnings of $46 million in the fiscal third quarter compared to $67 million in the previous year, Nordstrom is optimistic about the potential of its off-price stores. The company’s decision to close several full-price stores in 2020, including 16 in the U.S. and 13 in Canada, reflects its strategic shift towards the more successful Nordstrom Rack concept.

In Lake Grove, a new 25,160-square-foot Rack store is in the works, while Holbrook is set to house a 26,780-square-foot location in the redeveloped Shops at SunVet. These new stores are expected to attract a new customer base for Nordstrom, as the company aims to increase its market share in off-price retail.

Founded in 1901, Nordstrom Inc. operates 381 stores in the U.S., including 93 Nordstrom stores and two clearance outlets. Despite challenges in the luxury retail sector, Nordstrom remains committed to adapting to evolving consumer trends and maintaining its position in the market.

By prioritizing the growth of its Nordstrom Rack chain and focusing on providing customers with quality goods at discounted prices, Nordstrom is positioning itself for success in a changing retail landscape. The company’s decision to potentially go private, with a bid from the Nordstrom family and El Puerto de Liverpool, could provide the flexibility needed to navigate these challenges and streamline its operations. As Nordstrom continues to evolve, its commitment to delivering value and attracting new customers remains at the forefront of its business strategy.