• CNBC, Friday, March 2, 2012 10:41 AM

High-end department store Nordstrom is funneling its returned and worn shoes to its Nordstrom Rack outlet stores. This practice is surprising since outlet stores are not known as second-hand stores. It’s a place for retailers to send their unsold merchandise each season.

The shoes are clearly labeled as “worn and refinished” — and it’s reflected in the markdown. Sometimes they are slipped side-by-side on the racks with new items. Other times, they’re put on display in a section of the shoe department.

Nordstrom Rack spokesperson Kendall Ault said the shoes that are labeled as “worn and refinished” are gently worn (either tried on or accepted as returns) and then professionally cleaned, repaired and refinished as needed to return to a “near-pristine” condition.

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