Nordstrom Builds Rack Store Count - Analyst Blog
July 25 2011 - 1:00PM
Zacks
Nordstrom Inc. (JWN), one of the largest
fashion specialty retailers in the U.S., intends to further expand
its Rack concept by opening a new store in Farmington, Connecticut.
The store at the shopping center will include a wide selection of
apparels, accessories and shoes of the Nordstrom Rack store.
Nordstrom Rack store is an off-price retail format of Nordstrom
that sells the company's off-season and clearance goods from its
mall stores and Nordstrom.com at a discount of 50-60% from original
Nordstrom prices.
Rack also showcases apparel, accessories and shoes, which are
specially purchased for Nordstrom Rack with 30-70% off original
prices. The Rack concept is specifically designed for
customers who are appreciative of the brand but cannot afford it
given its higher pricing.
About West Farm Shopping Center
The new store, spanning 35,000 square-feet, is expected to come
up in spring 2012 and will share the floor with retailers such as
TJ Maxx, Sports Authority and Petco. The new store
will now be a part of West Farm Shopping Center, which is owned and
managed by Kimco Realty Corporation (KIM).
Kimco has an ownership interest in over 948 regional and super
regional shopping malls in 44 states of the United States, Puerto
Rico, Canada, Mexico and South America.
Our Take
We believe that the Rack stores provide a viable option for
consumers with less disposable income to buy branded products at
affordable prices.
Store Update
At present, the Seattle-based company, Nordstrom, operates a
network of 214 stores located in 29 states of which 116 are
full-line stores, 95 Nordstrom Racks, two Jeffrey boutiques and one
clearance store.
Nordstrom, which competes with Gap Inc. (GPS)
and Abercrombie & Fitch Co. (ANF), currently,
holds a Zacks #2 Rank, implying a short-term Buy rating on the
stock. Besides, the company retains a long-term Neutral
recommendation on the stock.
ABERCROMBIE (ANF): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
NORDSTROM INC (JWN): Free Stock Analysis Report
KIMCO REALTY CO (KIM): Free Stock Analysis Report
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