Nordstrom Considering Rack Spinoff

Department store retailer Nordstrom (Seattle) is said to be considering the spinoff of its off-price Nordstrom Rack business, reports The Seattle Times.

Nordstrom has hired AlixPartners to consider establishing Nordstrom Rack into a stand-alone business. Nordstrom is apparently “not satisfied at all” with the off-price brand’s recovery and has hired external consultants to help improve its performance.

Net sales for Nordstrom Rack for third quarter 2021 totaled $1.19 billion, up 35 percent from 2020 numbers, but down 8 percent from 2019. The retailer disclosed its top 50 brands are responsible for 42 percent of year-to-date sales.