Nordstrom Inc. (JWN) continues with its store expansion strategy by planning to open a new Nordstrom Rack outlet in Houston by the fall of 2014. The store covering an area of 38,000 square feet will be located at the Willowbrook Mall.
This marks Nordstrom’s third Rack concept store opening in the Houston area. In 2003, this leading fashion specialty retailer opened its full-line store at The Galleria, marking its arrival in Houston. In 2010, the first Houston Rack store was opened at Centre at Post Oak. Following this, the company opened a Rack store at The Market at Town Center in 2011 and recently announced a full-line store at The Woodlands Mall scheduled to open on Sep 5, 2014, thus steadily consolidating its position.
Nordstrom is likely to face tough competition from the other retailers housed in the Willowbrook Mall. The mall features a host of prominent retailers including Abercrombie & Fitch Co. (ANF), Michael Kors Holdings Limited (KORS) and Bebe Stores, Inc. (BEBE).
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. As of Jul 9, 2013, Nordstrom operated 248 stores, including 117 Nordstrom full-line stores, 127 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure&bond store and 1 clearance outlet.
Seattle-based Nordstrom currently carries a Zacks Rank #3 (Hold).
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