Nordstrom Grows Store Network - Analyst Blog
26 Giugno 2012 - 10:15AM
Zacks
Nordstrom Inc.
(JWN), a leading Seattle-based fashion specialty retailer,
announced plans to open two new Nordstrom Rack stores; one in
hometown Seattle, Washington, and the other in El Paso, Texas.
Nordstrom’s new Rack store in Seattle will be positioned at the
southeast corner of the Northgate Mall, where it already operates a
full-line store. The company had opened its first store in the mall
owned by Simon Property Group Inc. (SPG) way back
in 1950, which was later converted to a full-line store in 1965.
The Northgate mall also houses leading department stores like
Macy's Inc. (M) and J.C. Penney Company
Inc. (JCP).
Spread out in an area of 41,000 square foot, Nordstrom’s new
Northgate showroom is expected to begin operation in November 2012.
The store will mark the company’s sixth Rack store in Seattle,
including the recently relocated store at Westlake Center, downtown
Seattle.
Moving west, Nordstrom’s next Rack store announcement is planned to
come up at The Fountains at Farah, a new power and lifestyle
shopping mall in central El Paso. The mall being developed and
managed by Centergy Retail LLC is currently under construction. The
mall has been designed to accommodate over 600,000 square feet of
retail and restaurant space as well as lifestyle shopping
amenities. The company expects to start operating the 35,000 square
foot showroom by the fall of 2013.
Nordstrom’s Rack stores generally offer merchandises that are in
trend from Nordstrom stores and Nordstrom.com at a significantly
reduced price to customers. Products at these stores are sold with
discounts of roughly 50% to 60% from the original Nordstrom tags.
Nordstrom Rack also carries a vast assortment of branded apparel,
accessories and shoes that are available at Nordstrom stores, and
are offered to customers with a discount of about 30% to 70%.
Nordstrom’s latest store openings signify its commitment to
expanding stores network with the aim to drive its top-line growth.
Nordstrom’s focus on store expansion is evident from its string of
Rack stores openings in Orange, California; Salt Lake City, Utah;
Huntington, New York and Upland, California, since the start of
fiscal 2012.
In fiscal 2011, Nordstrom added 18 new stores, which contributed
significantly to a 12.7% year-over-year growth in fiscal 2011 net
sales. Moreover, Nordstrom plans to continue its store expansion
strategy in fiscal 2012, targeting to open a total of 16 new
stores, comprising 1 full-line store and 15 Rack stores.
Nordstrom currently maintains a Zacks #3 Rank, which translates
into a short-term Hold rating. Our long-term recommendation on the
stock remains Neutral.
PENNEY (JC) INC (JCP): Free Stock Analysis Report
NORDSTROM INC (JWN): Free Stock Analysis Report
MACYS INC (M): Free Stock Analysis Report
SIMON PROPERTY (SPG): Free Stock Analysis Report
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