Nordstrom is making significant changes to its beloved discount section, Nordstrom Rack, and some customers may not be too thrilled with what’s coming. The retailer has announced that shoppers will no longer earn points on purchases made at Nordstrom Rack, which was once a key feature of the store’s appeal. While this move aims to save the company money, it has left some loyal shoppers feeling disappointed. Let’s dive into the changes and what they mean for customers.
What’s Happening at Nordstrom Rack?
Nordstrom Rack, which is known for offering great discounts on a wide range of products, will no longer allow shoppers to earn points when they make purchases in-store or online. This means that customers won’t be able to rack up points that they could later use for discounts or rewards. According to retail expert Neil Saunders from Global Data, the change was made to help Nordstrom save money.
Saunders explained that as Nordstrom Rack grew rapidly, customers were earning too many points, which led the company to make adjustments. Nordstrom Rack shoppers who aren’t Nordy Club members might now feel like they’re missing out on the benefits that were once a part of the experience. However, the company assures that there are still perks for those who are part of the Nordy Club, especially for credit card holders.
New Benefits for Nordy Club Members
Despite the changes to Nordstrom Rack, Nordstrom is enhancing its Nordy Club membership program. If you’re a Nordstrom credit card holder, you can now enjoy a 5% instant discount on eligible purchases made at Nordstrom Rack. This applies both in-store and online, including the Nordstrom Rack app.
While some details about new Nordy Club benefits are still unclear, the company has promised additional perks for members, including:
- Instant discounts on purchases.
- Exclusive promotions and offers.
- Early access to new arrivals.
These benefits are part of Nordstrom’s push to add more value to the membership program, which is a crucial part of the company’s overall sales strategy. As of now, members can expect better savings and exclusive access to deals when shopping at both Nordstrom and Nordstrom Rack.
The Importance of Nordy Club Members
Nordstrom is likely focused on keeping its Nordy Club members happy, as they make up nearly 70% of the company’s total sales. The Nordy Club is free to join, and U.S. residents who are 18 or older can sign up either online or in-store. For those who hold a Nordstrom credit card, the benefits are even greater.
Given how significant this group is to Nordstrom’s bottom line, it’s no surprise that the company continues to expand its offerings. In fact, Nordstrom opened 23 new stores last year and plans to open another 21 stores in 2025. This expansion is part of the company’s strategy to maintain its strong presence in the retail industry, alongside growing its credit card membership base.
What Does This Mean for Shoppers?
For Nordstrom Rack shoppers who aren’t part of the Nordy Club, the loss of points on purchases might feel like a setback, especially since the store was known for offering both discounted prices and the chance to earn rewards. However, the 5% discount for Nordy Club members should soften the blow for those who hold a Nordstrom credit card, particularly since off-price shoppers often look for ways to save more money.
For those who don’t have a Nordstrom credit card but shop at Nordstrom Rack, the new benefits might seem less appealing, as the ability to earn points was once a key incentive. However, if you’re willing to join the Nordy Club, you can take advantage of the new instant discounts and potential promotions that will come with the membership.
Nordstrom’s Strong Financial Performance
Despite the changes and challenges in the retail landscape, Nordstrom is doing well financially. In 2024, the company reported sales of $15 billion, which exceeded expectations. While sales did drop in the final three months of the year, Nordstrom’s overall performance indicates that the company is in a strong position to weather these changes and continue growing.
While Nordstrom Rack shoppers may not be thrilled with the loss of points on purchases, Nordy Club members will find enhanced benefits, including instant discounts and exclusive offers. As Nordstrom continues to expand its store network and focus on strengthening its credit card membership program, it’s clear that the company is adapting to changing market conditions. For those who shop at Nordstrom Rack but aren’t part of the Nordy Club, it might be a good time to consider signing up to take full advantage of the new perks.
