They’ve just shifted their shopping habits to preferring online and discount retailers.
Just look at Nordstrom Rack.
Nordstrom Rack had its beginnings in 1973 as a clearance center in the basement of a Seattle store.

Most Rack stores are strategically placed.
They’re basically in very well-located strip centers or town centers" (viaBustle).
But how can Nordstrom Rack sell high-end brand names for prices that make customers break into happy dances?

They receive overstock inventory that didn’t sell at the main stores.
Nordstrom Rack also offers a selection of low-cost but stylish items that were produced especially for the store.
You just might snag a designer item you’ve been wanting for a small fraction of the original price.