Oahu’s second Nordstrom Rack will open in Waikiki in the spring on the same block as Ross Dress for Less, adding to the few discount stores in the tourist hub.
Seattle-based Nordstrom Inc. announced Monday plans to open its lower-price concept in a two-level, 34,000-square-foot space in the Waikiki Trade Center, which is under redevelopment.
"We want Nordstrom Rack to be Honolulu’s destination for great brands at great prices," said Geevy Thomas, president of Nordstrom Rack, in a statement. "We are thrilled to have the opportunity to open a second location, making it more convenient for customers shopping Waikiki, an area with great retail, entertainment, hotels and restaurants."
A spokesman for the Rack, the off-price division of Nordstrom offering 30 to 70 percent off regular prices, wouldn’t disclose how much the retailer is investing in the new store. The Rack carries merchandise from Nordstrom and Nordstrom.com.
The Rack will be located at street level and is one of several new retail developments along Kuhio Avenue.
Waikiki Trade Center, on the corner of Kuhio and Seaside avenues, is near the redeveloped International Market Place, which will be anchored by Saks Fifth Avenue, slated to open next summer.
Over the last few years, Waikiki’s mom-and-pop retailers selling cheaper items have been displaced as landlords seek to redevelop properties and add higher-end tenants to increase revenue.
"With the International Market Place and King’s Village going out, there hasn’t been a lot of places where tourists can buy less expensive items," said Honolulu real estate analyst Stephany Sofos. "It becomes very pricey for everyone."
The Rack opening in Waikiki will create "a synergy between Ross and Nordstrom," she added. "It kind of contains their market share. You’re providing your market with alternative shopping."
The other Nordstrom Rack location is at Ward Village Shops, while the company’s full-line store opened at Ala Moana Center in 2008. That store will relocate in March as an anchor of Ala Moana’s new Ewa expansion fronting Piikoi Street.
Nordstrom’s history in Hawaii goes back to 1966, when it began operating shoe departments in Liberty House locations around the state.
"We are elated to be bringing Nordstrom Rack to Waikiki as part of our plan to bring new and exciting retail to the Waikiki Trade Center," said Cordell Lietz, president of Coastwood Capital Group, which acquired the property in late 2013. "The addition of Nordstrom Rack is not only a key component to our redevelopment plan, but it will also continue the revitalization of Kuhio Avenue, providing a popular shopping destination for visitors and residents alike."
