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Nordstrom Store Expansion on a Roll

Zacks Equity Research

With its store expansion in full swing, Nordstrom Inc. (JWN) announced its latest plans to introduce a Nordstrom Rack store in Bakersfield, CA.

This new rack store, spread over roughly 35,000 square-feet and slated to open its doors in spring 2015, will mark the debut for the company in Bakersfield. The project, developed by Castle & Cooke, Inc., will be an integral part of the popular hub in the region, titled ‘The Shops at River Walk.’

The Shops at River Walk, is situated left of Calloway Drive on Stockdale Highway and south of the Westside Parkway. The mixed-use property, which houses the store, presents an impressive blend of specialty retail, dining as well as fashion choices.

The first development phase of The Shops at River Walk harbored several stores like Target Corp. (TGT) and Aveda, alongside restaurants like California Pizza Kitchen (CPK), BJ's Restaurant & Brewery (BJRI), P.F. Chang’s and Eureka! Burger. The second development phase will see the opening of Nordstrom Rack along with T.J.Maxx, Sprouts Farmers Market and many other local and national retailers, thus enticing more shoppers with various shopping options.

Although Nordstrom was operational in California, its first appearance in Bakersfield will add to the convenience of the customers. Moreover, by catering to customers through a local store, the company will enhance their shopping experience by offering them the same brands at discounted prices.

Nordstrom Rack, the off-price retail segment of the company, caters to stylish and trend-savvy customers. It stocks a broad range of fashionable apparel, footwear and other accessories at discounted prices. The Rack stores usually keep items from the main Nordstrom stores and the online website, www.Nordstrom.com. Alongside, these stores stack products bought from other big brands as well.

Nordstrom’s latest store openings signify its commitment to strengthen the retail network to drive 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 today, the company operates 267 outlets across 36 states, with 147 Nordstrom Racks, 117 full-line stores, 2 Jeffrey boutiques and 1 clearance outlet.

Currently, this Seattle-based company carries a Zacks Rank #4 (Sell). However, other better-ranked stocks in the same sector include American Apparel, Inc. (APP) and Foot Locker, Inc. (FL), both holding a Zacks Rank #2 (Buy).

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