Americans have tightened their spending in almost every sector of the economy.
From low-ticket items like fast-food meals and shoes to more expensive purchases such as travel and cars, economic pressures have made many consumers more choosy about where and how they spend their money.
“Almost half of Americans have been trying to cut back on spending, and many of them [have] seen some kind of financial worry in the past 12 months,” Statista Data Journalist Valentine Fourreau wrote on the Statista blog.
Statista’s new personal finance report from a survey of 60,000 American adults ages 18-64 showed some alarming numbers:
- 49% of U.S. respondents said over the last 12 months they have been trying to spend less money.
- 43% reported their cost of living had “increased notably.”
- 34% said they were worried about being able to pay their bills, including rent and utilities.
- 32% said their financial situation has been impacted negatively.
- 22% reported they have had to dip into household savings to cover expenses.
The survey results match shopping behaviors retailers have seen lately, and likely account for the success of budget-friendly stores including TJMaxx, Marshall’s, and Nordstrom Rack, which are all thriving, despite industry declines.
New Nordstrom Rack locations will open across 10 U.S. states in 2026.
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Off-price, discount-oriented approach resonates with consumers
Last year, upscale retailer Nordstrom emphasized that its success comes from “curating a compelling brand assortment” (e.g., offering the right mix of brands, styles, and price points), which suggests that customers are being more deliberate in what they buy, balancing quality, value, and convenience, Nordstrom President Pete Nordstrom said during a late 2024 earnings call.
But it’s the 35-year-old Nordstrom Rack brand that has become a central part of the company’s growth plan.
Related: Popular mall retailer continues comeback after closing stores
Nordstrom Rack offers discounted or last-season merchandise, and the company says many Rack customers migrate later to full-price Nordstrom stores — a sign that “value-first” shopping can lead to longer-term brand loyalty.
“Our highest-performing Nordstrom Rack stores are directly adjacent to our best Nordstrom stores — and there is no cannibalization between them,” Nordstrom revealed to Forbes.
Since the 2024 earnings call, the Nordstrom family and an investment group have transitioned the company back to private ownership in a $6.25 billion deal, and the growth of Nordstrom Rack locations has accelerated.
Nordstrom Rack is expanding across the U.S.
There are currently 258 Nordstrom Rack locations, including the 22 locations that opened in 2025 and the 19 that opened in 2024.
Nordstrom will open at least 14 new Nordstrom Rack locations across 10 U.S. states in 2026, according to USA Today.
The new Rack locations will open in:
- Encinitas, California
- Sarasota, Florida
- Orlando, Florida
- Pompano Beach, Florida
- Tampa, Florida
- Elmwood, Louisiana
- Knoxville, Tennessee
- Plymouth, Massachusetts
- Mansfield, Massachusetts
- Depford, New Jersey
- Williamsburg, Virginia
- Canton, Ohio
- Rockville, Maryland
- Spokane, Washington
The company has not shared opening dates.
Nordstrom Rack is a gateway to the upscale retailer
Nordstrom Rack is a successful retailer on its own, but the company’s leadership has another reason to continue investing in its second brand.
“We learned that the best acquisition channel for us, just in terms of sheer numbers of people, really comes through the Nordstrom Rack,” Nordstrom told Forbes.
“This customer acquisition strategy has become central to Nordstrom’s post-privatization playbook, as 25% of Nordstrom Rack shoppers migrate over to the full-line Nordstrom store.”
Nordstrom has prioritized stocking “nationally recognized strategic brands,” updating inventory more frequently, and positioning Rack as a discovery place, not just a clearance outlet.
How U.S. consumers are dealing with tariffs in 2025
Nordstrom is tapping into consumer sentiment, part of which is uncertainty around tariffs.
- 59% of consumers say they feel cautious, pessimistic, or panicked about the economy amid inflation and tariff pressures.
- 71% cite higher prices as their top concern.
- 47% say unpredictable price increases are their top concern.
- 38% are seeking deals more often, while 34% are reducing overall spending.
- During the holiday season, 26% are prioritizing essential goods over gifts.
Source: Wunderkind Black Friday/Cyber Monday Tariff Impact Survey
Related: 37-year-old retail icon near deserted after another business closes
