In furtherance of its international expansion plans,
) announced that it has identified a new store location in
Canada, at Toronto's Yorkdale Shopping Centre as reported by the
Wall Street Journal
. This 3-story, 188,000 square feet store will be the company's
2nd store in Toronto, following the Sherway Gardens store, slated
to open by fall 2016.
The new Yorkdale store will be a notable addition to the new
298,000 square feet expansion of the shopping center. Scheduled
to open its doors to public in fall 2016, this will mark
Nordstrom's 2nd-largest store in Canada.
Earlier, in Sep 2012, the company had announced plans to open 4
full-line stores in premier shopping malls including the Pacific
Centre in Vancouver, Calgary's Chinook Centre, Rideau Centre in
Ottawa and Toronto's Sherway Gardens. These Nordstrom stores are
expected to become operational starting fall 2014.
Apart from its efforts toward strengthening its presence
internationally, Nordstrom continues to remain focused on
expanding its store base in the United States. In sync with its
growth plans, the company, last week, announced plans to open 2
new Nordstrom Rack stores, one at the Belle Isle Station in
Oklahoma City opening by fall 2013 and the other at the 901
Market Street property in downtown San Francisco, slated to
commence operations by spring 2014.
The company's other recent store opening announcements include 3
new Nordstrom Rack stores coming up at the Shoppes at University
Town Center in Sarasota, FL, The Markets at Town Center in
Jacksonville, FL and at Shelbyville Road Plaza in Louisville, KY
by fall 2013; and a new Nordstrom Rack store at The Maxwell in
Chicago, IL expected to open in 2014.
Nordstrom's latest store openings signify the company's
commitment to strengthen its network with the aim of driving
top-line growth. As of Apr 4, 2013, Nordstrom operated 242
stores, including 117 Nordstrom full-line stores, 121 Nordstrom
Racks, 2 Jeffrey boutiques, 1 treasure&bond store and 1
In the years ahead, Nordstrom is poised to continue its store
expansion strategy, targeting to double the number of Rack stores
to more than 230 over the next 4 years, with roughly 24 openings
in 2013 and more than 30 in 2014. Further, the company plans to
strengthen its presence in Canada and Manhattan, which should not
only boost market share but also improve longer term top-line
Moreover, the company's latest capital expenditure plan reveals
that it remains stringently focused on improving market share by
enhancing investment in stores. Looking ahead, for the next 5
years, the company plans to nearly double its capital expenditure
outlay relative to the last 5 years to support investments in
Canada, Manhattan, e-Commerce and Rack.
Of the company's current 5-year capital plan of $3.7 billion,
nearly 20% is slated for entry into Canada and Manhattan, about
55% for new full-line stores, Rack stores and remodels, while the
remaining 25% is allocated for e-Commerce and technological
Nordstrom currently maintains a Zacks Rank #4 (Sell). Other
stocks that are performing well in the specialty retail sector
Sears Holdings Corp.
Costco Wholesale Corp.
Bebe Store Inc.
). Sears Holdings has a Zacks Rank #1 (Strong Buy), while Costco
and Bebe hold a Zacks Rank #2 (Buy).
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