Nordstrom Plans Rack Store Openings
Nordstrom Inc. (JWN) unfolded its plans to open 2 new Nordstrom Rack stores, one at Gallery on the Parkway in Dallas, Texas and the other at Station Park in Farmington, Utah, which are scheduled to open to public in fall 2013.
With the opening of the new Dallas location, Seattle based Nordstrom is set to strengthen its footprint in the northern Dallas area. The store will add to the company’s 4 full-line and 4 Rack stores, which are already operational in the greater Dallas-Fort Worth metropolitan region.
Enclosing about 39,180 square feet space, the new store will be located at Gallery on the Parkway, conveniently situated close to the Nordstrom full-line store at Dallas Galleria. Owned and operated by Bed, Bath & Beyond Inc. (BBBY) the center connects to the interstate 635 and the Dallas North Tollway. Occupying the space formerly held by Christmas Tree Shops, the new Rack store will join Bed, Bath & Beyond and buybuy BABY stores.
Nordstrom in an attempt to come closer to its customers in the northern suburbs of Salt Lake City plans to open at the Station Park shopping center. The company already operates 2 full-line and 2 Rack stores in the greater Salt Lake City area, which is situated at a convenient distance from the northern suburbs. Station Park is opportunistically located at the crossroads of Interstate 15 and Legacy Parkway in the community of Farmington, about 20 miles north of Salt Lake City.
The company’s new Rack store will occupy about 29,000 square feet of the total one million square feet space in the open air center. Providing options for retail, dining and entertainment, the shopping center houses a host of vibrant brands including Marshalls, a department store chain owned by TJX Companies Inc. (TJX); Ross Stores Inc. (ROST); HomeGoods, the home furnishing division of TJX Companies; and H&M.
Nordstrom’s Rack stores generally offer merchandise 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 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. As of Apr 15, 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. Nordstrom currently maintains a Zacks Rank #4 (Sell).
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