Peter Nordstrom, one of three co-presidents forecasts that digital sales could very well represent 50% of company sales in the next five years. Currently, Nordstrom has 26% of sales online. Same store sales at the physical stores fell 4.4% last quarter while rising nearly 20% at its discount Rack chain. Only Neiman Marcus which got a head-start in online sales, has a bigger proportion of online sales with 31%. Online and physical stores feed each other: when Nordstrom opens a new store, online sales there get a boost of 20%. Also 10% of online sales already come from the metro New York area without the benefit of a store. The cross-feed is part of the thinking behind the upcoming full-service Nordstrom store coming to Manhattan, its first in New York City.