Due to their lightness and simple connectivity, steel racking systems are typically considered as “low-dissipative” structures, which is reflected in the modern seismic codes by the absence of capacity design and the adoption of low behaviour factors. This limited capability of stress redistribution significantly increases the vulnerability of racks under beyond-design seismic hazards and raises the demand for more resilient designs. Along these lines, the proposed Plastic Ovalization Strategy (POS) attempts to increase the ductility of the individual upright frames comprising the cross-aisle direction of racks, and at the same time to preserve their low-cost and easy-to-assemble nature. This is achieved by tasking the bearing failure mechanism of the diagonal bolt hole to absorb seismic deformations, while capacity design is employed to keep the rest of the structure in the elastic zone. Following a detailed discussion on the motives and basic principles of the strategy, two high-rise racking systems are designed twice by professional engineers, once using standard approaches and then by additionally employing the proposed POS rules. Finally, the two design solutions are compared by conducting a comprehensive seismic assessment, which employs a phenomenological macro-model comprising elastic elements and nonlinear springs to simulate the bearing failure mechanism.