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Nordstrom Rack Could Have 300 Locations by 2020

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Nordstrom Rack has been expanding rapidly this year, and the company has no plans of slowing down its pace of opening outlet stores, according to a WWD profile. The retailer wants to keep growing the number of Rack locations and admits that its long-awaited Manhattan store could be a tipping point for the brand as it attempts to reach $20 billion in sales by 2020.

As was the case earlier this year, Nordstrom Rack stores continue to drive dollars for the brand. Nordstrom Rack's profits rose 23% this year, while Nordstrom stores only saw 0.5% growth. Unsurprisingly, Nordstrom is investing heavily in the profitable stores and plans to have 300 locations open (there are currently 188 Nordstrom Rack stores) by 2020.

The Nordstrom Rack stores will play an important part in the retailer's growth, but much of the brand's long-term success hinges on its first-ever Manhattan store. "The flagship is a costly gamble that, if it succeeds, will strengthen the retailer's ties to New York's designer community and definitively place Nordstrom on the same plane as Neiman's and Saks," WWD's David Moin writes. "If it sputters, though, the blow to Nordstrom's reputation would be significant."

Not that this has stopped Nordstrom from putting more plans for Manhattan stores in the works. The retailer is currently looking for another home downtown. "We're looking, but something opening downtown before 57th Street is highly unlikely," Pete Nordstrom tells WWD. "We don't have anything downtown, but I wouldn't dismiss it as a possibility."