Where I live in Reno, Nevada — a major logistics hub for the western U.S. — dozens of big-name retailers have fulfillment warehouses that support their e-commerce operations.

Among them are Amazon, Walmart, Barnes & Noble, Petco, Urban Outfitters (Anthropologie and Free People), and Foot Locker.

In reality, though, the general retail experience here is limited, especially when compared to Las Vegas or Sacramento, California, about two hours away.

We do have one Nordstrom Rack, located in a midtown shopping center, and it’s generally my go-to for anything I can’t find at Costco or Target, especially apparel and gifts.

One reason for my preference is that Nordstrom carries recognizable national brands, including:

  • Ugg
  • Adidas
  • Rag & Bone
  • Coach
  • Select products from luxury labels like Jimmy Choo, Fendi, and Prada.

Many of the brand-name products sold at Nordstrom Rack are from previous seasons or represent excess inventory, which is why the company is able to sell them at discounted prices.

In recent years, Nordstrom has focused on expanding Rack locations, opening more stores of the company’s discount sibling. Considering all the shifts in consumer behavior we’ve seen over the last couple of years, the strategy makes sense.

Discount retailers are increasingly popular with consumers.

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Consumers plan to cut discretionary spending in 2026

Times have been tough for millions of consumers over the last two years. Between ongoing inflation challenges and uncertainty around tariffs, people have been choosier about their spending. The fallout has affected major retailers and restaurants, as well as independents.

Still, in some ways, inflation doesn’t look all that bad, at least when you compare 2025 to 2022. The Consumer Price Index showed annual inflation at 2.7% in November. And when you compare that to the 9% inflation in 2022, you’d think consumers would be doing somersaults of joy.

The problem is that even when inflation cools, it’s not as though prices drop.

Related: Costco upgrades perks for members amid slowing growth

That may explain why, when 2025 came to a close, “Consumer sentiment in the United States dropped considerably compared with the beginning of the year,” according to McKinsey’s ConsumerWise report, published Dec. 5, 2025.

“Spending intent for semidiscretionary categories held flat or softened, with a sizable decline in fitness and wellness services, as is common in the run-up to the holiday season,” the authors wrote.

The most concerning statistics for retailers, per the McKinsey report, are related to spending in the first three months of 2026:

  • 38% of respondents said they will spend less on apparel.
  • 39% say they will spend less on electronics for home or personal use.
  • 47% will spend less on furniture.
  • 43% will spend less on decor and products for home.
  • 45% will spend less on accessories.
  • 38% say they will spend less on footwear.
  • 48% say they will spend less on jewelry.

Despite consumer sentiment, Nordstrom will open new Rack stores in 2026

Nordstrom Rack sells products in nearly every one of the categories McKinsey cautions consumers are cutting back on, yet the company confirmed that in 2026, it will open at least 12 new locations of its off-price chain, Nordstrom Rack.

In a retail environment where closures outnumber openings by the thousands, any expansion stands out. One from a legacy department-store operator like Nordstrom stands out even more.

Related: Major department store chain shuts locations in metro areas

The new locations span at least 10 states and are concentrated in areas where off-price retail has historically performed well.

Several of the new stores are planned for open-air centers rather than traditional indoor malls. Like existing Rack locations, they are expected to offer services such as online order pickup and returns, allowing stores to double as customer service hubs for the flagship brand.

New Nordstrom Rack locations, according to Nordstrom:

  • Elmwood, Louisiana: Spring 2026
  • Tampa, Florida: Fall 2026
  • Orlando, Florida:Fall 2026
  • Mansfield, Massachusetts: Fall 2026
  • Williamsburg, Virginia: Fall 2026
  • Deptford, New Jersey: Fall 2026
  • Plymouth, Massachusetts: Spring 2026
  • Canton, Ohio: Fall 2026
  • Knoxville, Tennessee: Spring 2026
  • Encinitas, California: Spring 2026
  • Spokane, Washington: Fall 2026
  • Rockville, Maryland: Fall 2026

Nordstrom also announced additional new Rack stores planned for 2027-2028.

Retail openings and closings in 2025 and predictions for 2026

Data research firm Coresight shared the following retail insights with TheStreet, dated Jan. 2, 2026:

  • US retailers announced 8,235 store closures and 5,270 store openings for calendar 2025.
  • As of December 31, 2025, Coresight tracked 31 major retail bankruptcies in the U.S. for calendar 2025.
  • In calendar 2024, the company tracked a total of 51 retail bankruptcies; these totals include automobile dealers and direct-to-consumer brands.
  • 2026: Coresight has tracked 569 planned closures and 1,118 planned openings announced by U.S. retailers for 2026.

“It has been an incredibly dynamic year with many moving parts,” Coresight Head of Global Research John Mercer shared with TheStreet. “The growth of challengers such as Temu and Shein, which were cited by some companies filing for bankruptcy early in the year, was impacted by changes to the de minimis thresholds,” he said.

“Crucially, consumers (as a whole) have kept spending, with retail sales growing solidly (year over year) each month through September (latest confirmed from the Census Bureau), and well above retail inflation, reflecting real gains for retail,” Mercer added.

Confirmed store closures of 2025

Coresight also shared the following information about store closures in 2025:

  • New Rite Aid (formerly Rite Aid): 1,292 stores closed
  • Joann: 815 stores closed
  • Party City: 738 stores closed
  • Big Lots: 682 stores closed
  • Claire’s Holdings: 485 stores closed
  • Walgreen Co. (formerly Walgreens Boots Alliance, Inc.): 243 stores closed
  • 7-Eleven (Seven & i Holdings Co., Ltd.): 218 stores closed
  • Forever 21 (Catalyst Brands): 19 stores closed
  • CVS Health: 81 stores closed
  • Dollar General: 271 stores closed
  • Giant Eagle: 270 stores closed
  • Torrid: 81 stores closed
  • Winn-Dixie: 30 stores closed
  • Family Dollar: 67 stores closed

Related: Electronics retail chain closing 100s more stores in survival fight