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Nordstrom Rack is the off-price retail division of Nordstrom Inc., which was founded in 1901 in Seattle, Washington by John W. Nor dstrom. Since then, Nordstrom has expanded from a small Seattle shoe shop to a leading fashion specialty retailer with over 100 stores and an e-commerce business that continues to grow and evolve. Nordstrom Rack has been serving customers for over 40 years, offering many of the same Nordstrom brands they know their customers love at great prices.