Shoppers – grab your baskets! The first Nordstrom Rack is opening on Union Square in Manhattan Tuesday morning at 9 a.m. ET.

"Ideally, we would have first opened in New York with a full-line store," said Blake Nordstrom, president of Nordstrom Inc. at a press preview Monday morning, "but this opportunity was too good to pass up."

The Union Square store carries women's and men's clothing, shoes and accessories with women's occupying slightly more of the 32,000 square feet. Labels in the contemporary fashion area include Marc by Marc Jacobs, Elizabeth & James, See by Chloé, Nanette Lepore, D&G, Lafayette 148, Tahari, Michael Michael Kors, DKNY and more. There are Prada sunglasses, Michele watches and Badgley Mischka handbags in the accessories area, plus tons more.

Merchandise is 50 to 60% off regular Nordstrom prices, with loads of things available for under $50 (Cole Haan sandals, Michael Michael Kors sequin tanks, CK Capri pants).

Because of the expected turnover in this store, there will be new deliveries daily. "The best merchandise on the floor is the new merchandise," Nordstrom said, adding that this is one of the tenets of his business.

The Nordstrom Rack concept, which started in a Nordstrom store in Seattle when they set up shoe and clothing racks in the store's basement to house sale merchandise, now has 76 outlets, with another 10 to open by fall and 10 to 15 planned for 2011.

There are 114 "full-line" Nordstrom stores, but none on the drawing board for Manhattan. "We've been looking for a number of years, but it's difficult to find a location," Nordstrom added.

Find out what other trusty department store is opening a lower priced shop.