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Nordstrom Inc. (JWN), one of the largest fashion specialty retailers in the U.S., has its eyes on further expanding its Rack concept and plans to open a store in Boise Towne Plaza shopping center, Idaho. Spring 2012 will unveil the wide selection of apparel, accessories and shoes of the Nordstrom Rack store at the shopping center.

Nordstrom Rack store is an off-price retail format of Nordstrom, which sells the company's own off-season and clearance goods from its mall stores and Nordstrom.com at 50-60% off original Nordstrom prices. Rack also showcases apparel, accessories and shoes that are specially purchased for Nordstrom Rack with 30-70% off original prices.  The Rack concept is specially designed for customers, who appreciate the brand but cannot afford its higher price.

About Boise Towne Plaza

The store is expected to roll out in spring 2012. The store with an area of 37,000 square-feet will join the floor with Old Navy, Famous Footwear and Men's Warehouse. The shopping center is owned and managed by General Growth Properties Inc. (GGP), which operates over 170 regional and super regional shopping malls in 43 states. Boise Towne Plaza is situated next to the Idaho's largest shopping center Boise Towne Square, which have over 180 stores and restaurants.

Our Take

We believe that the Rack stores are a good option in a sluggish economy which provides consumers with less disposable income, an option to shop branded products at affordable prices.

Store Update

At present, the Seattle-based company operates a network of 209 stores located in 28 states of which 115 are full-line stores, 91 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 #3 Rank, implying a short-term 'Hold' rating on the stock. Besides, the company retains a long-term 'Neutral' recommendation on the stock.

 
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