Nordstrom set to open NYC Rack store

Seattle Nordstrom is set to open a discount Rack store in Manhattan Tuesday, the company's first-ever outlet in Manhattan.

The company said last summer it planned to open the Manhattan location in Union Square at the site of a former Virgin Megastore.

Nordstrom has been using discount Rack stores to help it drive sales in the tough economy.

Nordstrom Rack same-store sales grew 2.5% in 2009, while Nordstrom full-line stores saw sales decline 7.2%.