We went to Nordstrom's discount store and saw how it could be the future of the chain (JWN)

mostly thanks to its off-price chain,
The company said it would be opening 12 new
We visited a Nordstrom Rack store in New York City to see what the shopping experience is like.

Nordstrom is turning into a discount retailer to boost sales.

The century-old department store reported a 2.6% increase in same-store sales during the fourth quarter on Thursday. This was mostly thanks to strong sales at its off-price chain, Nordstrom Rack.

Same-store sales at Nordstrom Rack grew 3.7% overall, and its net sales were up 15%. This was driven by growth online, which was up by 23.7% in the quarter. Nordstrom's full-price stores, meanwhile, reported a 1.7% decrease in same-store sales and a 12.4% increase online.

Nordstrom Rack is the off-price retail division of the luxury department store Nordstrom. It sells brands for between 30% and 70% off. We visited one of its stores in New York's Union Square on a sunny afternoon in June 2017. The store is one block away from a rival off-price retailer, Burlington.

While same-store sales in Nordstrom's department stores have slowed in the past three years, the off-price channel has seen more growth, especially online.

For this reason, the brand has been growing its off-price store locations: Nordstrom now operates 232 off-price stores in the US and 122 full-line stores. The retailer confirmed it will be opening 12 more Nordstrom Rack stores in 2018.

Off-price shopping has become one of the only bright spots in retail. While department stores such as Macy's and JCPenney have shuttered stores, off-price retailers such as TJ Maxx and Ross Stores have announced plans to expand across the US.

Department stores have begun trying to mimic the off-price model in their own stores. Macy's, for example, has created its Backstage concept. This has created more competition in the space, despite Nordstrom being ahead of the curve here.

Morningstar analyst Bridget Weishaar told Business Insider that there is still more room for growth."I think their big asset is Nordstrom Rack," she said in June.

This Nordstrom Rack store felt a lot like a TJ Maxx.

However, prices did feel more expensive here. These Tommy Hilfiger Men's suit jackets were reduced from $400 but still had a hefty $189.97 price tag.

The layout was very similar, but it did feel more organized, especially in the self-service shoe section.

In the accessories section, jewelry hung from racks.

And all beauty products were self-service.

It was a lot less luxurious than one of Nordstrom's full-price department stores.

Customers can fill carts with products.

There were fewer attendants around to help and limited changing rooms, which created long lines.

And there were long lines to pay.

This area felt a lot like a grocery store.

Overall, the shopping experience at Nordstrom Rack was pretty pleasant. It's fun to sift through racks of products to find the real gems that are available. If Nordstrom can keep its selection fashionable and current in Rack stores, it's a good sign for the brand. It's a lot more appealing to shop here than at its full-price stores, where you are paying much higher prices for comparable products.

We went to Nordstrom's discount store and saw how it could be the future of the chain (JWN)

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