Nordstrom Inc. JWN has decided to shut down its full-line store at Horton Plaza Store in San Diego, CA. After enjoying nearly 31 years of patronage from the customers at Horton Plaza, since 1985, this store will cease to operate from Aug 26, 2016.
However, Nordstrom highlighted that their patrons will continue to receive services from other locations in San Diego, primarily from the Fashion Valley outlet right down the road. Apart from the store being closing down, the company operates three Nordstrom and four Nordstrom Rack locations in the city. These include the Nordstrom University Towne Centre; Nordstrom Fashion Valley; Nordstrom North County; Nordstrom Rack Mission Valley; Nordstrom Rack Carmel Mountain Plaza; Nordstrom Rack Plaza Bonita; and Nordstrom Rack Grand Plaza.
Of these, the Nordstrom University Towne Centre store in La Jolla is slated to relocate to a new mall space in 2017, incorporating its latest store design. Additionally, the company is scheduled to open a Nordstrom Rack outlet at the Shops at La Jolla Village in Oct 2016.
The store closure is expected to affect nearly 180 non-seasonal employees. Nordstrom indicated that it will try to absorb the employees willing to stay with the company at its close by Nordstrom and Nordstrom Rack stores. Others, who fail to find a role in these stores, will be offered a severance package.
Nordstrom offers a broad selection of over 500 brands, targeted toward the entire family, through a strong nationwide network of more than 326 stores situated across 39 states, including 121 full-line stores in the United States, Canada and Puerto Rico; 200 Nordstrom Rack stores; 2 Jeffrey boutiques; and 1 clearance store.
Nordstrom through its globally recognized brands caters primarily to the upscale segment, enabling it to generate high margin revenue. The company also appeals to its consumers by offering a more inclusive selection of quality merchandise, which further distinguishes it from other mall-based department store retailers.
Nordstrom’s strategic investments should help it to sustain profitable growth over the long term. Also, the company’s strong brand image and continued store expansion ventures remain driving factors. The company’s focus on store expansion is evident from the series of Rack store openings over the last couple of years.
The stock closed down 2.9% at $37.13 on Friday.
Zacks Rank
Nordstrom currently maintains a Zacks Rank #5 (Strong Sell). Investors interested in the retail space may consider some better-ranked stocks such as Christopher & Banks Corporation CBK, sporting a Zacks Rank #1 (Strong Buy), and The Children's Place Inc. PLCE and Destination XL Group, Inc. DXLG, both holding a Zacks Rank #2 (Buy).
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