Founded 50 years ago, Nordstrom Rack has decades more experience than younger competitors such as Saks Off Fifth and Macy’s Backstage. However, Nordstrom’s off-price sibling is struggling to differentiate itself in the minds of consumers. To better serve that goal, the brand is rolling out a new brand identity that includes a fresh logo and brand colors. It’s the first time Nordstrom Rack has updated its logo in more than a decade.

“Our old identity system had become a bit similar to what else is out there—everyone was using some of the similar techniques, everyone wants to talk about discounts, big numbers, and percentages,” said Red Godfrey, VP of creative at Nordstrom Inc. “There was an opportunity to be more distinct.”

The new logo (at right, above) plumps up the rack letters in a retro font reminiscent of the brand’s 1970s heritage. It was purposely designed on a modular grid in order to be more compatible with digital and mobile formats, executives said, noting that the mark will roll out across in-person store signage and online as well. Nordstrom Rack’s typical blue coloring was evolved to include multiple shades of the hue.

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Nordstrom Rack did not initially intend to change its logo at all. In late 2021, the brand hired global branding agency Jones Knowles Ritchie and began working on a new branding system in January of 2022. Following months of research and design, that system was completed in September but the old logo did not fit the new visual identity and brand guidelines, Godfrey said. The disparity led to this month’s updated mark.

“We want to make our mark work harder so when customers see the ad, they don’t say, ‘Who was that?’” said Godfrey. She noted that the new logo is responsive and adaptable to different iterations.

The fresh identity began appearing in some of Nordstrom Rack’s digital marketing channels earlier this month but will replace all signage moving forward on new and remodeled stores as well as on the brand’s app and website and in out-of-home ads. Shopping bags will also get an update.

While some off-price retailers, such as TJX and Ross, are appealing to price-sensitive shoppers during a tough economy, Nordstrom Rack is facing challenges. The 250-unit chain recently reported an 8% drop in net sales for the fourth quarter and has been plagued by inventory issues, according to a report citing the chain’s lackluster holiday performance.

“The off-price Rack business continues to be a laggard both for Nordstrom and when compared to the wider market,” wrote Neil Saunders, managing director of retail consultancy GlobalData Retail, in a recent research report about the brand’s sales performance. He added that the current economic environment has been favorable to off-price retailers in general. “As such, there are no external excuses for this abysmal performance and Nordstrom must shoulder all the blame."