May 15, 2014, 11:39 AM

Off-price retailer Nordstrom Rack goes online

Finding discounted apparel and accessories at Nordstrom Rack used to involve braving the crowds and leafing through racks and shelves. Not anymore.

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Discount shoppers with a penchant for name-brand designers can now shop while still in their Lanz or Ralph Lauren pajamas. Nordstrom Inc. recently unveiled an e-commerce site for its Nordstrom Rack division, which offers apparel, shoes and accessories at steeply discounted prices. The new site also comes with a mobile app.

The discount brand piggybacks off the online infrastructure of Haute Look, Nordstrom’s members-only flash sale brand, which it bought in 2011 for $270 million. Consumers can use one login, one shopping cart and one checkout process for items from either brand.

"We were able to leverage the talent of our HauteLook team to build a fast, seamless online and mobile experience—an important milestone in supporting our priorities to meet our customers' expectation of how they like to shop today,” says Jamie Nordstrom, president of Nordstrom Direct.

The new site comes at a time when Nordstrom is looking to increase its share of online sales and attract more younger shoppers. In 2013, 63.1% of its sales come from the full-line department stores and 37.9% come from e-commerce, Nordstrom Rack and Hautelook—whose shoppers tend to be younger. But president Blake Nordstrom expects that to even out in a few years.

Jamie Nordstrom says e-commerce is the fastest-growing part of the department store’s business, and Blake Nordstrom told investors late last year that the chain was on track to hit $6 billion in web sales by 2020. The company’s web sales increased 30% in 2013—from 1.30 billion in 2012 to 1.69 billion in 2013—according to Internet Retailer’s Top 500 Guide. Nordstrom Inc. is No. 24 in that ranking.

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