Placer.ai: Nordstrom and Bloomingdales shoppers find T.J. Maxx
Continued inflationary times find even affluent shoppers marching into off-price retail chains such as T.J. Maxx and Ross Dress for Less for discounted luxury goods.
In 2021, 30.9% of Nordstrom customers also shopped at T.J. Maxx. Last year, that percentage swelled to 40%. During the same period, T.J. customer visits made by Dillard’s shoppers rose from 36.3% to 45%, according to a report from the foot-traffics analytics provider Placer.ai.
Luxury department store visits remained steady at around 2% over the four-year period, while traffic declined at traditional department stores (from 27.9% to 25.1%) and apparel shops (from 33.6% to 31.2%) in this grouping.
“Both traditional and premium department stores feel the draw of off-price apparel,” according to the Placer.ai report, “though the fact that more Dillard’s than Nordstrom visitors visited an off-price chain suggests that visitors to the more upscale department store were less inclined to also visit an off-price store.”
Aware of this trend, leading department store chains are filling their aisles with more discounted options. Dillard’s emphasis on private label merchandise helps keep products affordable without compromising quality, while Nordstrom continues to expand its off-price format – Nordstrom Rack – to capitalize on demand for value in the apparel space.
Other chains are adding value—and finding success—by in investing in new shopper experiences.
Bloomingdale’s emphasized exclusive product launches and events such as “From Italy with Love,” that helped increase visits by 1.5% YoY in 2024.
Nordstrom’s introduced a digital strategy that demonstrated how a seamless omnichannel platform can elevate the shopping experience. The brand’s new app uses generative AI to make personalized style recommendations and allows users to check merchandise availability or make a stylist appointment at their local store.
The app’s pre-holiday release may have contributed to Nordstrom’s success in 2024, including a 2.2% visit increase compared to 2023.
Dillard's, often considered a mid-range department store, has attempted to cultivate a classier retail environment with an updated, uncluttered store environment and expert stylists to assist customers. That resulted in a 2.3% visit growth for the chain in 2024.
“While value-seeking is on the rise,” concluded the Placer.ai report, “retailers that provide an elevated shopping experiences add a different kind of value to their brand.”
