What Causes Nordstrom Rack Store Closings?

A look at the relationship between the Smart Chic segment and Nordstrom Rack store closures.

Since 2013, Nordstrom Rack has over doubled their store count. For seven consecutive years, they have added more stores than they've closed. Not bad for a retailer going up against the internet and all the other challenges in the commercial real estate industry.

Nordstrom Rack's Growth

Despite their growth and success, some Nordstrom Rack locations have closed. Some of this could be due to the continually changing demographics in markets, better positions in a market becoming available, or any number of reasons. We wondered, what is making these stores close? Were there critical reasons behind these store closings? If so, what were they, and how could we prevent them?

When we first introduced Geosocial data, we researched the top segment at each Nordstrom Rack location. We gathered the Geosocial data for each existing Nordstrom Rack location across the nation and threw it into a table. The results surprised us. Over 60% of their sites scored a 90 or better in Smart Chic, a Geosocial segment devoted to shoppers looking for great fashion at a great price. Overall, Nordstrom Rack's average Smart Chic score was 88. That is an impressively high score considering that Geosocial data is ranked on a national average.

Smart Chic Scores

We started thinking, what if we looked at things in reverse? What were the scores of the locations that closed? We ran the same study around sites closed for any reason in the last year. The average Smart Chic score for the closed Nordstrom Rack locations was 76. That much of a difference can make a store unsuccessful and lead to relocating or closing the store. This indicates that there are not enough consumers in these areas that are interested in a budget-friendly solution.

Closed vs Open Locations

The stores that recently closed scored worse when compared to the average Nordstrom Rack. Even if Nordstrom Rack is not currently using this data in their research, they are reacting to the underlying consequences. Geosocial data helps you see the voice in a neighborhood, and if you know who your audience is, this data can help you find them. Geosocial data is now available in REGIS Online - so you can take advantage of this data to find connections to the brands you serve!

Visit our website www.sitesusa.com to learn more or call us at 480-491-1112 to see a live demo of Geosocial data at work in REGIS Online.

Caldwell Smith
Director of Marketing / SitesUSA

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