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How Close is Too Close for Similar-Brand Retailers?

Nordstrom Rack opens today at 3241 Preston Rd. in Frisco, approximately 6/10 miles from the full-line Nordstrom and only one of two from a total of 18 new Rack openings within one mile of a Nordstrom store.

By Lisa Brown | lisabrown | Updated on October 05, 2017

Nordstrom Rack The distance between Nordstrom Rack and Nordstrom will increase in the future.

FRISCO, TX—Declining retail sales in what has been a high-growth segment prompts a closer look at the department store off-price sector. Possible strategy changes including the distances retailers will put between off-price and full-line stores, as well as factors that could be contributing to falling sales were outlined in a recent report by Kroll Bond Rating Agency/KBRA.

Historically, the underlying assertion was that department stores wanted to ensure that off-price distribution channels didn’t compete directly with full-line business locations. This was intended to limit off-price stores cannibalizing sales from full-line offerings and avoid the dilution of brand identity.

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