In furtherance of its store expansion strategy, Nordstrom Inc. (JWN) announced the opening of its first Nordstrom Rack location in South Carolina. The company unveiled its plans to open a new Rack store at Magnolia Park in Greenville.
Located in Magnolia Park, constructed by Menin Development Inc., the store will occupy 32,000 square feet space in the mall. In its final stages, the new phase of the mall will house leading retailers, restaurants and entertainers in an area of about 800,000 square feet. Currently, the mall includes retail chains like Costco Wholesale Corp. (COST), Toys “R” Us and Babies “R” Us and entertainer Regal Cinemas, a theatre circuit of Regal Entertainment Group (RGC). The store is scheduled to open by fall 2014.
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 Nov 12, 2013, Nordstrom operates 261 stores, including 117 Nordstrom full-line stores, 141 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 DSW Inc. (DSW), which has a Zacks Rank #2 (Buy).