Taking its store-expansion strategy to the next level, Nordstrom Inc. (JWN) announced its plans to introduce two new Rack stores, one each in New York and Colorado.
Spanning across 33,357 square feet, the company’s latest Rack store in New York will be located on the first level of the Destiny USA mall in Syracuse, occupying a space adjacent to The Cheesecake Factory store and opposite the Armani Outlet. The mall includes a host of other retailers like Lord & Taylor, Macy's Inc. (M), J.C. Penney Co. Inc. (JCP), H&M, Saks OFF 5th, T.J.Maxx and DSW.
The store, scheduled to open its doors in fall 2015, is a part of the company’s plan to expand in upstate New York. A while ago, the company had announced the opening of two more Rack stores in the region, in Buffalo and Albany, both of which are also scheduled to open in fall 2015.
The other Rack store announced yesterday will be located at Chapel Hills East in Colorado Springs, CO. Chapel Hill East, a property of DDR Corp., is conveniently situated in north central Colorado Springs, near the Academy Boulevard. Other retailers doing business in the mall include Whole Foods, DSW, Best Buy Co. Inc. (BBY), Old Navy and Carter's.
Covering an area of 31,203 square feet, the store will mark the company’s 6th store in Colorado and its 14th store in DDR’s property. The store is scheduled to open for the masses in spring 2016.
Nordstrom had stepped into the state of Colorado in 1996 with is store at Park Meadows. Recently, the company announced the opening of a fifth Rack store in Fort Collins, which will open its doors by fall 2015. Apart from this, the company also operates three full-line stores in the state.
Nordstrom Rack, being the off-price retail segment of the company, offers fashion-savvy customers a wide range of on-trend apparel, footwear and other accessories at discounted prices. These Racks usually keep items from the main Nordstrom stores and its online store, Nordstrom.com. Alongside these, the stores stack products from other big brands sold by the company.
Nordstrom’s focus on store expansion is evident from the series of Rack store openings since the beginning of fiscal 2014. Its latest store openings signify the company’s commitment toward strengthening its network with the aim of driving top-line growth.
The company now operates 292 outlets across 38 states, including 116 full-line stores in the U.S., one in Canada; two Jeffrey boutiques; 167 Nordstrom Racks; and one clearance store.
This Zacks Rank #3 (Hold) company’s commitment toward expansion is also highlighted in its recent acquisition of Chicago-based provider of personalized clothing services for men, Trunk Club. We believe this acquisition strategically fits Nordstrom’s business model, as the company is trying to capture the rapidly growing men’s clothing market.
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