An old Mervyns is now home to two fashion outlets in San Diego sharing the same roof.
Last year the Nordstrom Rack opened up in Carmel Mountain Ranch, taking up half of the old department store. Now the Saks Fifth Avenue discount store Off 5th is taking the other half.
That's no coincidence, according to San Diego State marketing professor Miro Copic.
"If you already have a population that are coming to a Nordstrom Rack, absolutely going a few stores down to see the Off 5th store is going to be very important," said Copic.
The discount stores are now the biggest growth area for the popular department stores. There are only 39 Saks Fifth Avenue stores in 22 states, but there are 75 Off Fifth stores and growing.
Copic said a Rack store actually makes 75 percent more money per square foot than a traditional Nordstrom store.
Shoppers outside the Rack in Carmel Mountain say they are looking for value.
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"I think everybody is trying to make their dollar stretch," said Cindy Rose
"It's fast, it's easy and it's cheaper," said Lisa Wright.
Nordstrom now has 117 department stores but 145 Nordstrom Rack stores. Miro Copic said that's the future of many high fashion stores.
"Upscale brands like Nordstrom and Saks Fifth Avenue are very desirable by consumers, but the price point at those stores is too high," says Copic.
The side-by-side stores in the former Mervyns building is offering a cheaper alternative to look good.
