Bethany Biron/Business Insider
We went on a treasure hunt at Nordstrom Rack.
- Traditional retailers like Macy's and Nordstrom are increasingly turning to their off-price counterparts to help keep business afloat.
- Global retail analytics firm NPD Group found that two-thirds of consumers regularly purchase apparel from off-price brands.
- We recently shopped at Nordstrom Rack and Bloomingdale's The Outlet stores in New York City to see how the shopping experiences compared. Ultimately, Nordstrom Rack won us over with its organized layout and sleek displays, despite having fewer luxury products than Bloomingdale's.
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While department stores struggle to stay open, off-price and discount retailers are thriving in a golden age of their own.
According to global retail analytics firm NPD Group, two-thirds of consumers regularly purchase apparel from off-price brands like TJ Maxx and Marshalls. Consumer demand for off-price goods has increased so much over the past several decades that the discount market is expected to reach up to $19 billion in incremental sales by 2021, according to JPMorgan analysts cited by Retail Dive.
For traditional department stores like Macy's and Nordstrom, discount models have become vital revenue streams. While Macy's plans to expand its Backstage locations as part of an upcoming turnaround plan, its Bloomingdale's The Outlet stores continue to perform well. Meanwhile, Nordstrom Rack has consistently reported positive quarterly sales gains during an uncertain retail landscape in which its full-price locations have stumbled.
We recently visited Nordstrom Rack and Bloomingdale's The Outlet stores in New York City to see how the two shopping experiences compared. While both featured an impressive assortment of designer goods at bargain prices- not to mention the occasional messy display - Nordstrom Rack ultimately won us over with its sleek layout and better-organized store.
Here was our experience: