Nordstrom to cut Rack, Last Chance from loyalty points program

Dive Brief:

Beginning June 3, Nordstrom is updating its Nordy Club terms and conditions with additional ways for members to receive discounts and other benefits, most notably at its Nordstrom Rack locations.
Customers will no longer be able to earn points on purchases at Nordstrom Rack stores, its website or Last Chance stores, according to a Nordstrom spokesperson.
Instead, customers can receive a 5% discount at Nordstrom Rack, its website and app when they use their Nordstrom credit card on eligible purchases. Card members may only use their Nordstrom credit card at checkout to pay for their purchases to get the discount at the Rack or online. They cannot use Apple Pay, PayPal or Afterpay, per the company.

Dive Insight:

Nordstrom is updating its Nordy Club loyalty program to offer new benefits to its Rack customers, according to Deniz Anders, Nordstrom’s executive vice president and chief marketing officer.

“We are excited to evolve The Nordy Club and introduce exclusive benefits to Nordstrom Rack customers, delivering great brands at great prices with even more perks each time they shop with us,” Anders said in an email. “The new benefits offer our Nordstrom Rack customers more value, providing instant discounts, special promotions, and early access to new arrivals.”

Nordstrom has been growing its Rack locations in recent years, with 23 opening last year with plans for 21 more in 2025.

Nordstrom struck a deal to take the company private last year, with investment from Mexican retail conglomerate El Puerto de Liverpool. The all-cash transaction valued at about $6.25 billion, which was unanimously approved by the board of directors in December, is expected to close around May 18. The department store in its most recent quarter reported net sales fell about 2% year over year to $4.2 billion. Nordstrom Rack net sales rose 6.6%, with comps up 3.5% at the banner.

The Nordy Club changes come as other major brands have refreshed their loyalty programs over the recent past, including J.C Penney, which is in the midst of a turnaround. Ulta Beauty changed its loyalty program name and refreshed its look last year, while True Religion and Foot Locker both reimagined their programs in 2024 attempting to jump-start sales by offering more discounts to those who purchased more items.