Guide to Nordstrom Clearance Sections Explained
ar the Rack” sale, walked out with a $248 blazer for $39, and realized: this is a full-on strategy game.
If you’ve ever felt totally overwhelmed by Nordstrom’s sale maze — main store, Rack, online “Last Chance”, red tags, yellow tags — I’ve been there. After years of stalking their clearance racks both in-store and online, I’ve figured out how the different sections work, what’s actually a deal, and what’s just noise.
This guide is everything I wish someone had told me before I started.
The 3 Main Nordstrom Clearance Universes
When I say “Nordstrom clearance,” I’m really talking about three different but connected worlds:
- Nordstrom (full-line stores + Nordstrom.com) – Price-matched sales, seasonal markdowns, and the legendary Anniversary Sale “after-party” markdowns.
- Nordstrom Rack (stores + nordstromrack.com) – Off-price and clearance, including items that started at full-line Nordstrom.
- Last Chance (select outlet stores only) – The final, final markdown destination in a few states.
In my experience, understanding where a deal lives is half the battle, because the rules and timing are very different.
Nordstrom Main Store: Markdowns, Price Matching & Hidden Clearance
When I tested shopping full-line Nordstrom for clearance instead of heading straight to Rack, I was surprised by how much is quietly marked down on the regular floor.
How markdowns actually work
Nordstrom doesn’t publish a detailed markdown calendar, but associates have told me they typically run progressive markdowns:
- 1st markdown: ~25–40% off
- 2nd markdown: ~40–60% off
- Final markdown: sometimes 60–70% off, then moved to Rack
You’ll sometimes see tags with multiple printed prices and tiny date codes on the back — that’s the markdown history.
From a merchandising standpoint, this is classic retail lifecycle management: full price → first markdown → deeper discount → off-price channel. Nordstrom even says in its 10-K filings that it uses Nordstrom Rack to “clear excess inventory” while protecting the full-price brand positioning.
Where the clearance hides in-store
I recently walked a full-line Nordstrom with the goal of only shopping clearance. Here’s what I noticed:
- Clearance isn’t always in a single “sale” room. It’s often grouped by department on dedicated sale racks.
- Look for red price tags or red stickers. Regular items usually have plain white tags.
- In shoes, sale styles are often on separate shelving with red signage. Open-box pairs can sometimes be a bit scuffed but massively discounted.
I’ve found the best hidden deals in:
- Occasion dresses at the end of wedding season
- Cashmere in late winter/early spring
- Designer denim when a brand updates fits/washes
Price matching: the underrated hack
One of my favorite quiet policies: Nordstrom will usually price-match select competitors (think: Saks, Bloomingdale’s, Neiman Marcus) if the exact item is cheaper and in stock elsewhere online.
You can chat online or ask in-store. I once had a pair of Stuart Weitzman boots price-matched down another $80 because Bloomingdale’s had just dropped them. It took five minutes.
Limitations:- They won’t match every random website — it needs to be an authorized retailer.
- Clearance or final sale prices sometimes don’t qualify.
Still, it’s worth a quick search before checking out, especially on higher-ticket items.
Nordstrom Rack: Decoding Tags, Labels & “Clear the Rack”
Nordstrom Rack is where things get spicy. When I tested tracking a few specific brands (Vince, Theory, Nike) over three months at Rack, I noticed clear patterns in how markdowns and tags evolved.
The two types of goods at Rack
Not everything at Rack is “from Nordstrom.” Roughly speaking, you’ll see:
- True Nordstrom overstock/returns – Items that started at full-line Nordstrom, then got transferred to Rack.
- Made-for-Rack or off-price items – Manufactured specifically for the off-price channel.
You can usually spot the difference by checking:
- Labels and RN numbers – True Nordstrom items often have higher original prices and identical tags to what you see at the main store.
- Quality details – Lining, stitching, fabric composition (a real cashmere or silk piece is usually from the full-line side).
Made-for-Rack isn’t automatically bad, but in my experience the value delta (how much you’re actually saving vs. original quality) is much higher on genuine Nordstrom transfers.
Tag colors and clearance signals
While exact colors can vary a bit by region and over time, here’s what I keep an eye on:
- White tag – Regular Rack price (already discounted vs. Nordstrom retail).
- Red sticker – Clearance markdown
- Yellow sticker – Frequently used for final or deeper markdowns in some stores.
I’ve seen a Vince sweater go from white tag $149.97 → red sticker $119.97 → second red sticker $89.97 → “Clear the Rack” extra 25% off → final price around $67. That’s where timing matters.
“Clear the Rack” events
When I first tried planning around Clear the Rack (the extra % off clearance sale), my mistake was assuming it only happened once a year. It actually pops up several times annually, both online and in-store, usually at an extra 20–25% off red-tag clearance.
My process now:
- I add items to my Rack online wishlist when they first hit clearance.
- I wait for a Clear the Rack email or homepage banner.
- I pounce on items that are already at least 50–60% off original retail.
The best scores I’ve seen:
- $325 Cole Haan coat for under $80
- Designer jeans (AG, Mother) in the $35–$60 range
Last Chance: The Final Boss of Nordstrom Clearance
Last Chance is Nordstrom’s “nothing goes further than this” outlet concept, with just a couple of locations (currently in Arizona and Illinois). I made a pilgrimage to the Phoenix store once, and it honestly felt like the sample sale cousin of Nordstrom Rack.
What I saw when I tested it:
- Tons of customer returns from both Nordstrom and Rack
- Items with small flaws (missing buttons, makeup marks, tiny snags)
- Shoes galore, often with box damage or light wear from try-ons
Prices can be absurd — I saw designer heels marked down from $695 to under $80.
Pros:- Ridiculously low prices
- True designer pieces you might never see elsewhere
- Very hit-or-miss inventory
- Crowded and picked-over, especially on weekends
- Limited sizes and more irregulars
If you love the thrill of the hunt and don’t mind a bit of chaos, it’s worth going once just for the experience.
Online vs. In-Store: Where the Best Clearance Lives
When I compared my Nordstrom and Rack online carts to what I could find in-store over a few months, a pattern emerged:
Online strengths:- Better for extended sizes (petite, plus, tall, wide calf)
- More color options and full style runs
- Easier price-tracking with wishlists and browser extensions
- Random one-off returns that never hit online inventory
- Chance to catch damaged-box or slightly imperfect items for cheap
- Ability to inspect fabric, fit, and construction (huge for suits, coats, and jeans)
My hybrid method now:
- I start online to learn average sale prices for a brand.
- Then I hit Rack or Nordstrom in person and immediately know if something is a real deal or just average.
What’s Actually Worth Hunting in Nordstrom Clearance
From my own trial-and-error (and a few questionable impulse buys), some categories consistently deliver better value:
Best bets:- Coats & jackets – Especially wool, puffer, and trench styles in off-season.
- Denim – Premium denim brands hold up well and are often last-season washes.
- Shoes – Boots, sneakers, and occasion heels can be 50–70% off retail.
- Cashmere & wool knits – When marked down, price-per-wear is excellent.
- Trendy fast-fashion-style pieces – Even at 70% off, a low-quality, super-trendy item may not be worth it.
- Occasion dresses – Amazing when they fit your exact event; otherwise they can languish in your closet.
My rule now: if I wouldn’t buy it at 30% off in a neutral color, I probably shouldn’t buy it at 70% off in neon chartreuse.
How to Avoid Clearance Regret
A few guardrails I’ve learned (the hard way):
- Check return policies carefully. Nordstrom full-line is famously customer-friendly, but Nordstrom Rack has shorter return windows and more exclusions on final sale.
- Inspect seams, zippers, and fabric. Clearance items may have been tried on a lot or lightly damaged.
- Google the style name. I always check reviews on Nordstrom.com or other retailers before committing.
- Calculate real savings. Compare the clearance price to similar current-season items, not just the “original” MSRP.
I’ve also started asking myself: Would I still want this if it were full price? If the answer is a hard no and I’m only excited about the discount, it goes back on the rack.
The Bottom Line on Nordstrom Clearance
Nordstrom’s clearance ecosystem isn’t random — it’s a structured pipeline from full price to Rack to Last Chance. Once I understood that flow, hunting deals stopped feeling like gambling and started feeling more like playing chess.
If you:
- Track brands and typical markdown ranges
- Learn to read tag colors and labels
- Time your shopping around major events like Clear the Rack and end-of-season cleanouts
…you can build a high-quality wardrobe at outlet-level prices, without settling for junk.
And yes, you’ll still occasionally end up with a sequined wildcard. But at least you’ll know you got it on serious clearance.
Sources
- Nordstrom Investor Relations – 2023 Annual Report - Details on Nordstrom’s merchandising and off-price strategy
- Nordstrom – Return & Price Adjustment Policy - Official information on returns and price adjustments
- Forbes – How Nordstrom Rack Fits Into Nordstrom’s Strategy - Context on full-price vs. off-price channels
- CNN Business – The rise of off-price retail - Explains how off-price and clearance models work
- Harvard Business School – Retailing and Merchandising Concepts - Background on markdown strategy and inventory management
