In furtherance of its international expansion plans, Seattle-based Nordstrom Inc. (JWN) announced that it has identified a new store location in Canada, at Toronto’s Yorkdale Shopping Centre as reported by the Wall Street Journal. This 3-story, 188,000 square feet store will be the company’s 2nd store in Toronto, following the Sherway Gardens store, slated to open by fall 2016.
The new Yorkdale store will be a notable addition to the new 298,000 square feet expansion of the shopping center. Scheduled to open its doors to public in fall 2016, this will mark Nordstrom’s 2nd-largest store in Canada.
Earlier, in Sep 2012, the company had announced plans to open 4 full-line stores in premier shopping malls including the Pacific Centre in Vancouver, Calgary's Chinook Centre, Rideau Centre in Ottawa and Toronto's Sherway Gardens. These Nordstrom stores are expected to become operational starting fall 2014.
Apart from its efforts toward strengthening its presence internationally, Nordstrom continues to remain focused on expanding its store base in the United States. In sync with its growth plans, the company, last week, announced plans to open 2 new Nordstrom Rack stores, one at the Belle Isle Station in Oklahoma City opening by fall 2013 and the other at the 901 Market Street property in downtown San Francisco, slated to commence operations by spring 2014.
The company’s other recent store opening announcements include 3 new Nordstrom Rack stores coming up at the Shoppes at University Town Center in Sarasota, FL, The Markets at Town Center in Jacksonville, FL and at Shelbyville Road Plaza in Louisville, KY by fall 2013; and a new Nordstrom Rack store at The Maxwell in Chicago, IL expected to open in 2014.
Nordstrom’s latest store openings signify the company’s commitment to strengthen its network with the aim of driving top-line growth. As of Apr 4, 2013, Nordstrom operated 242 stores, including 117 Nordstrom full-line stores, 121 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure&bond store and 1 clearance store.
In the years ahead, Nordstrom is poised to continue its store expansion strategy, targeting to double the number of Rack stores to more than 230 over the next 4 years, with roughly 24 openings in 2013 and more than 30 in 2014. Further, the company plans to strengthen its presence in Canada and Manhattan, which should not only boost market share but also improve longer term top-line trends.
Moreover, the company’s latest capital expenditure plan reveals that it remains stringently focused on improving market share by enhancing investment in stores. Looking ahead, for the next 5 years, the company plans to nearly double its capital expenditure outlay relative to the last 5 years to support investments in Canada, Manhattan, e-Commerce and Rack.
Of the company’s current 5-year capital plan of $3.7 billion, nearly 20% is slated for entry into Canada and Manhattan, about 55% for new full-line stores, Rack stores and remodels, while the remaining 25% is allocated for e-Commerce and technological investments.
Nordstrom currently maintains a Zacks Rank #4 (Sell). Other stocks that are performing well in the specialty retail sector include Sears Holdings Corp. (SHLD), Costco Wholesale Corp. (COST) and Bebe Store Inc. (BEBE). Sears Holdings has a Zacks Rank #1 (Strong Buy), while Costco and Bebe hold a Zacks Rank #2 (Buy).
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