Nordstrom Expected To Open Discount Rack Store Near Phoenix

Article originally posted on CoStar on August 9, 2023

Nordstrom plans to open a Rack store in the fast-growing Phoenix suburb of Queen Creek after announcing a national expansion of the upscale retailer’s off-price locations in the United States last spring.

The Seattle-based chain plans to open the 28,000-square-foot store in Queen Creek Marketplace, a community shopping center near the southwest corner of Rittenhouse and Ellsworth Loop roads, Nordstrom said in a statement.

Nordstrom will have 10 Rack stores and one full-size Nordstrom store in Arizona, with the opening of the store slated for spring of next year, the retailer said in a statement.

Major tenants in the center, owned and managed by Phoenix-based developer Vestar, include Target, Trader Joe’s, Harkins Theatres, Dave & Buster’s and Total Wine.

Strong population and job growth have spurred demand for retail space across Phoenix in recent years, according to a CoStar Market Analytics report. With vacancy at a record-low 4.7%, the lack of available space has begun to weigh on leasing as retailers find fewer options for expansion.

Nordstrom plans in May to open 23 Rack locations, the retailer’s biggest source of where it expects to gain new customers across the United States over the next two years.

This year, the retailer plans to exit its operations in Canada, including closing 13 Nordstrom and Rack stores there. The company ended the first quarter with 347 total locations, including 243 Rack stores.

Nordstrom reported an 11.6% drop in total sales and a net loss of $205 million for its fiscal first quarter that ended April 29. The company is scheduled to report its second-quarter earnings on Aug. 24.