We went shopping at TJ Maxx and Nordstrom Rack to see which was a better discount store, and the winner was clear

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We headed to Nordstrom Rack in Manhattan's Union Square on a sunny afternoon in July.

We headed to Nordstrom Rack in Manhattan's Union Square on a sunny afternoon in July.

Much like TJ Maxx, Nordstrom Rack sells designer brands at a 30-70% discount.

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The layout of the store felt a lot like a TJ Maxx ...

The layout of the store felt a lot like a TJ Maxx ...
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... as did the accessories section. Cheaper jewelry hung from racks, and more expensive pieces were locked in a cabinet.

... as did the accessories section. Cheaper jewelry hung from racks, and more expensive pieces were locked in a cabinet.

All beauty products were self-service.

All beauty products were self-service.
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However, the brands were high-end.

However, the brands were high-end.

While the premise is the same as TJ Maxx, it felt like a more upscale version.

While the premise is the same as TJ Maxx, it felt like a more upscale version.
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These Tumi suitcases were nearly $400.

These Tumi suitcases were nearly $400.

The store was mostly split out by individual brands, which made it easier to shop and less of a bargain hunt.

The store was mostly split out by individual brands, which made it easier to shop and less of a bargain hunt.
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We spotted lots of exclusive labels such as Rag & Bone, Theory, and 7 For All Mankind, which are less likely to be found in a TJ Maxx store.

We spotted lots of exclusive labels such as Rag & Bone, Theory, and 7 For All Mankind, which are less likely to be found in a TJ Maxx store.

However, there was definitely some cross-over between the brands that were stocked in both stores.

However, there was definitely some cross-over between the brands that were stocked in both stores.
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In the clearance section, different labels were jumbled in together.

In the clearance section, different labels were jumbled in together.

Around 20% of what is sold in these discount stores is clearance inventory from its stores and website. Most items are bought specifically for the Nordstrom Rack store.

Around 20% of what is sold in these discount stores is clearance inventory from its stores and website. Most items are bought specifically for the Nordstrom Rack store.

Source: Racked

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Taking that into consideration, you might not be getting as good a deal as you think.

Taking that into consideration, you might not be getting as good a deal as you think.

The layout in the Nordstrom Rack shoe section was very similar to TJ Maxx, but it did feel more organized.

The layout in the Nordstrom Rack shoe section was very similar to TJ Maxx, but it did feel more organized.
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There were multiple sizes in some styles ...

There were multiple sizes in some styles ...

... and on well-known brands.

... and on well-known brands.
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These stores have become a key area of growth for Nordstrom. Same-store sales here have outpaced its full-line stores for the past three years, especially online.

These stores have become a key area of growth for Nordstrom. Same-store sales here have outpaced its full-line stores for the past three years, especially online.

For this reason, the company has been growing its off-price store locations: Nordstrom now operates 239 off-price stores and 122 full-line stores in the US.

For this reason, the company has been growing its off-price store locations: Nordstrom now operates 239 off-price stores and 122 full-line stores in the US.
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Nordstrom said it would be opening 12 new Nordstrom Rack stores in 2018 and only one new Nordstrom.

Nordstrom said it would be opening 12 new Nordstrom Rack stores in 2018 and only one new Nordstrom.

Next, we headed to TJ Maxx in Downtown Manhattan. Menswear and luggage were at the entrance to the store. We instantly spotted some recognizable brands such as Samsonite and Nautica.

Next, we headed to TJ Maxx in Downtown Manhattan. Menswear and luggage were at the entrance to the store. We instantly spotted some recognizable brands such as Samsonite and Nautica.
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Seasonal clothing was put front and center.

Seasonal clothing was put front and center.

We spotted dozens of well-known brands.

We spotted dozens of well-known brands.
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In some areas of the store, brands were clustered together, which was easy to shop ...

In some areas of the store, brands were clustered together, which was easy to shop ...

... and in some cases, there were multiple sizes in one style.

... and in some cases, there were multiple sizes in one style.
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But on the whole, it was pretty chaotic and lived up to the bargain-hunt promise.

But on the whole, it was pretty chaotic and lived up to the bargain-hunt promise.

The clearance section was sprawling, and the clothing felt a lot less fashionable than at Nordstrom Rack.

The clearance section was sprawling, and the clothing felt a lot less fashionable than at Nordstrom Rack.
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Both men's and women's wear included a section devoted to "Premium Designers," where trendy brands such as Theory and Vince had their own mini-sections.

Both men's and women's wear included a section devoted to "Premium Designers," where trendy brands such as Theory and Vince had their own mini-sections.

More expensive items were boxed up in plastic to prevent shoplifting.

More expensive items were boxed up in plastic to prevent shoplifting.
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This location was considerably larger than the Nordstrom Rack we had visited, which meant there was room for homeware and furniture.

This location was considerably larger than the Nordstrom Rack we had visited, which meant there was room for homeware and furniture.

We found more popular brands here.

We found more popular brands here.
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Overall, the products felt much less exclusive than what we found at Nordstrom Rack.

Overall, the products felt much less exclusive than what we found at Nordstrom Rack.

TJ Maxx is all about the bargain hunt.

TJ Maxx is all about the bargain hunt.

Overall: On paper, these stores appear to be identical, offering big discounts on designer labels. While a no-frills store layout is a factor in both, there is a big difference between the quality of the brands and, therefore, the prices.

At Nordstrom Rack, the focus is on more exclusive designer labels, which means it's generally more expensive. At TJ Maxx, there is a wide mix of lesser-known labels, affordable designer brands such as Calvin Klein and Ralph Lauren, and a few "premium" labels scattered in between.

Overall, Nordstrom Rack was the winner. While it is expensive, you do feel that you are shopping for better-quality products.

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