In another move to expand its store base, Nordstrom Inc. (JWN) announced the opening of three new Rack outlets in New Jersey, California and Pennsylvania.
Spanning across 36,000 square feet, the company’s latest Rack store in New Jersey will be located at Wayne Towne Center in Wayne. The store will occupy a two-level space in the newly constructed building of this existing shopping center, which stands at the intersection of I-80 and State routes 46 and 23, nearby the Willowbrook Mall.
The Wayne Towne Center houses a host of renowned retailers including J. C. Penney Company, Inc. (JCP), Costco Wholesale Corp. (COST), Dick's Sporting Goods Inc. (DKS) and DSW along with several restaurants.
Scheduled to open in fall this year, the store marks the company’s sixth Rack store in New Jersey. Nordstrom, which had recently opened a new Rack store at Livingston, plans to open two more this year at Mercer Mall in Princeton and Crossroads of Eatontown in Eatontown. Additionally, the company already operates five full-line stores in New Jersey.
The second Rack store announced yesterday will be located at Palladio at Broadstone in Folsom, CA. Likely to open for the masses in spring 2016, the store will share space with prominent retailers in the mall including Whole Foods, Sport's Authority and H&M along with a 16-screen movie theater. Other retailers and restaurants doing business in the mall include Chico's, Gymboree, Victoria's Secret, Starbucks, Red Robin and Pinkberry.
Covering an area of 33,000 square feet, the store will be the company’s third Rack store in Sacramento County, with two functioning outlets at Howe 'Bout Arden Center in Sacramento and the Rack at Creekside Town Center in Roseville. Apart from this, the company also operates two full-line stores in the region at Nordstrom Arden Fair and the Galleria at Roseville.
The third announcement was of a 35,450 square feet Rack store at Hamilton Crossing in Allentown, PA. Easily accessible from Hamilton Boulevard and Route 222 on the west side of Allentown, the store will be located in the property of The Goldenberg Group. Expected to open its doors in fall 2016, the store will share premises with retailers like Costco, Whole Foods and Target.
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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