While sales have been strengthening at Nordstrom, executives from the Seattle-based retailer told a group of investors that one of the best lessons it learned in the recession was a savvier balance
between its full-line Nordstrom stores and the Rack, its fast-growing off-price division.
The company says it plans to keep opening between 10 and 15 Rack stores per year, but as growth picks up
at Nordstrom, there is less inventory. "We've had Racks for 35 years, and it's a very profitable concept," Rob Campbell, head of investor relations, told those attending the 30th Piper Jaffray
Consumer Conference. "It's worked well in both in tough times and good times." As consumers tiptoe back into luxury spending, "the Rack's performance has moderated in recent months. That's good news
for Nordstrom, because it means we've become a lot more adept at clearing full-line merchandise in our main stores. And it's an opportunity for the Rack, which is going to have to tweak its offerings.
That's the beauty of having a portfolio."