Nordstrom is making big changes to its Nordy Club loyalty program — some good, others not so much.
The retailer announced that members will no longer earn points on purchases made at Nordstrom Rack, whether in-store, online, or at Last Chance locations.
The shift could disappoint loyal shoppers used to racking up rewards on discount finds.
But there’s a silver lining: Nordstrom credit card holders will now receive an instant 5 percent discount on eligible Rack purchases, including online and in the app.
Retail expert Neil Saunders, from Global Data, said Nordstrom made the changes because Rack customers had been earning too many points, which was impacting the company’s finances.
‘As Nordstrom Rack is now As growing rapidly, they want to cut back on this point inflation and restrict rewards to customers of the department stores.
‘However, Rack shoppers are not being entirely short-changed, the discount on purchases made with a Nordstrom credit card is attractive – especially as off-price shoppers are looking for ways to save money.’
The policy changes come after Nordstrom struck a $6.25billion deal to take the company private, which is due to happen in May
Nordstrom loyalty program members will no longer be able to earn points at Nordstrom Rack starting June 3
Rewards members can shop at Nordstrom Rack in-store, online, or through the app with a 5 percent discount when using a Nordstrom credit card on eligible purchases
Nordstrom plans to open 21 Nordstrom Rack stores in the US this year
‘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,’ said Deniz Anders, Nordstrom’s executive vice president and chief marketing officer.
‘The new benefits offer our Nordstrom Rack customers more value, providing instant discounts, special promotions, and early access to new arrivals.’
Any US resident who is at least 18 years old can become a Nordy Club member.
Its free to join, and customers can sign up online or in Nordstrom stores.
Nordy Club members account for nearly 70 percent of Nordstrom’s total sales.
Nordstrom’s overall 2024 sales of $15 billion beat expectations despite a dop in the final three months of the year.
Nordstrom continuing to expand its Rack locations after opening 23 stores last year. The company plans to open 21 more this year.
The Nordy Club is not the only exclusive loyalty program to plan and implement changes.
Ulta Beauty is in the process of completing its goal to have 50 million members by 2028 despite its recent 2 percent drop in sales.
JCPenney revamped its loyalty program last year after filing for bankruptcy protection in 2020.
