The store expansion strategy of Nordstrom Inc. (JWN) continues as it announced a new Nordstrom Rack location in California. The company unveiled its plans to open a new Rack store at the Village at Dublin shopping center in Dublin.
Dublin, along the East Bay, is an ideal location for the new Rack store as the company has been enjoying excellent customer loyalty across this belt. Other Nordstrom stores along the East Bay and close to the latest Rack store include a full-line store at Stoneridge Mall in Pleasanton and Rack stores in San Leandro and Fremont. The newest addition to the company’s Rack stores on this belt was inaugurated on Sep 12 at the Sunvalley Shopping Center in Pleasant Hill.
Occupying about 35,000 square feet floor area in the 152,500 square feet shopping center, the company’s new Rack store shares business space with popular retailers and restaurant chains, including Whole Foods Market Inc. (WFM). The store is scheduled to open by fall 2015.
Located at the corner of Dublin Boulevard and Hacienda Drive in Dublin, Village at Dublin is a property of Regency Centers Corporation (REG). The shopping center is projected to have a high foot-fall catering to the inhabitants of Dublin and the neighboring Tri-Valley area. Together, these areas feature a daytime population of 112,778 with an average household income of over $126,000.
Nordstrom’s Rack stores generally offer merchandise from Nordstrom stores, Nordstrom.com and special collections from many of the renowned brands offered at Nordstrom at a significantly reduced price to customers. A vast assortment of branded apparel, accessories and shoes that are available at Nordstrom stores are offered to customers at a discount of about 30%–70%.
Nordstrom’s latest store openings signify the company’s commitment to strengthen its network with the aim of driving top-line growth. Nordstrom’s focus on store expansion is evident from the series of Rack store openings since the beginning of fiscal 2013. As of Oct 15, 2013, Nordstrom operated 257 stores, including 117 Nordstrom full-line stores, 137 Nordstrom Racks, 2 Jeffrey boutiques and 1 clearance outlet.
Nordstrom targets to double the number of Rack stores to more than 230 by 2016, with roughly 24 openings in 2013 and more than 30 in 2014. Currently, the company plans to open 13 more Rack stores during the remainder of 2013.
Seattle-based Nordstrom currently carries a Zacks Rank #3 (Hold). Another stock worth consideration among apparel-shoe retailers is Citi Trends Inc. (CTRN), which has a Zacks Rank #1 (Strong Buy).