Discounters Scoop Up Houston Retail, Market briefs

In Houston, Discount stores including Nordstrom Rack, Burlington, HomeGoods, and dd’s Discounts are scooping up vacant retail spaces as they expand in the Houston market.

Nordstrom Rack, the off-price retail division of Nordstrom with five locations in Houston, will take over a former Bed, Bath & Beyond in Katy next year.

Work will begin to build out a nearly 38,000-SF store at 24600 Katy Freeway in the Shoppes at Park West in January, as stated by a filing with TDLR. Completion is planned in August.

Nordstrom Rack, which has 27 stores in Texas, offers a mix of apparel, accessories, beauty products, home décor, and shoes at prices up to 70% off. A McAllen location is slated to open this fall.

The expansions come as retailers are projected to open about 5,500 stores nationwide this year, up about 4.4% over 2025 with discounters contributing to the gains, as stated by Coresight Research.

Houston’s retail occupancy held steady at 95.2% at midyear as discount stores, gyms, bookstores, and other retailers backfilled vacancies, as stated by the Weitzman commercial real estate firm.