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Nordstrom to Open 2 New Stores

Zacks Equity Research

Going ahead with its store expansion strategy, Nordstrom Inc. (JWN) announced its plans to open two Nordstrom Rack stores in Summerlin, NV and Westwood, MA.
Located at The Shops at Summerlin, the first 36,000 square foot Nordstrom Rack store is scheduled to open by the fall of 2014. The Shops at Summerlin boasts nearly 125 shops and restaurants which includes Macy's, Inc. (M) and Dillard's Inc. (DDS).

This is the second Nordstrom Rack in the Las Vegas area. Currently, the company operates a full-line store at Fashion Show Mall and a Nordstrom Rack at Stephanie Street Center in the Las Vegas area.

The second Nordstrom Rack store slated to open is located at University Station in Westwood and covers 35,000 square feet. It will likely open by the spring of 2015. University Station is a retail, office, residential and hotel destination in Greater Boston spanning 2 million square feet. It boasts the presence of eminent retailers such as Target Corp. (TGT).

In 2007, Nordstrom first arrived in Greater Boston with its full-line store at Natick Mall. Since then, the company has opened three more full-line stores and four Rack stores in the area. On Sep 12, Nordstrom unveiled a Central Massachusetts Rack store at The Shoppes at Blackstone Valley in Millbury.

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. So far, the company has announced its plans to open more than 10 Rack stores in locations such as Riverside County, CA, Webster, TX; Brooklyn, NY; Skokie, IL and West Palm Beach, FL.  

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 12 more Rack stores during the remainder of 2013.

As of Sep 17, 2013, Nordstrom operated 252 stores, including 117 Nordstrom full-line stores, 132 Nordstrom Racks, 2 Jeffrey boutiques and 1 clearance outlet.

Seattle-based Nordstrom currently carries a Zacks Rank #3 (Hold).

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