) store expansion strategy continues with its plans to open one
new Nordstrom Rack store each in Columbia, South Carolina and
Madison, Wis. by fall 2014. Additionally, with a view to enhance
product deliveries to online shoppers in the East Coast, the
company initiated the construction of its third fulfillment
center at Conewago Industrial Park in Elizabethtown, Pa. on Jan
Occupying a floor space of 34,000 square feet, the new Nordstrom
Rack store in South Carolina will be located at Harbison Court in
Columbia, which stands nearby the Columbiana Mall. Marking the
company's second Rack location in South Carolina, the new
Columbia store will replace the Barnes & Noble Inc.
store in the mall. It will join a host of retail chains including
Ross Dress for Less by
Ross Stores Inc.
), Marshalls a subsidiary of
The TJX Companies Inc.
), Pier 1 Imports Inc., Golfsmith and Anna's Linens. Harbison
Court is a property of
The second Nordstrom Rack store will be located at West Towne
Crossing in Madison, Wis., situated close to the West Towne Mall.
The 30,750 square feet Rack store coming up in the property of
CBL & Associates Properties Inc. will mark the company's
second Rack location in Wisconsin, an hour's drive from
Milwaukee. The store will occupy the space previously held by
Gander Mountain Outlet. The new Rack store will share business
space with a vibrant mix of retailers including Ulta Salon,
Cosmetics & Fragrance Inc. , Best Buy Co. Inc. , Metcalfe's
and Kohl's Corp. among many others.
Nordstrom's Rack stores generally offer merchandise from
Nordstrom stores, Nordstrom.com and special collections from many
of the renowned brands available at Nordstrom at a significantly
reduced price to customers. A vast assortment of branded apparel,
accessories and shoes that are available at Nordstrom stores are
offered to customers at a discount of about 30%-70%.
Coming to the new fulfillment center, the new Pennsylvania
building will occupy about 672,000 square feet space, having an
additional 470,000 square feet mezzanine. This facility follows
the company's two existing centers in Cedar Rapids, Iowa and San
Moreover, this new facility will provide ample employment
opportunities in the state, hiring about 400 people for full-time
jobs along with several part-time and seasonal jobs for a span
for 3 years. Later, the facility expects to employ up to 700
full-time personnels, with the scope to expand further as the
business picks up. This center will primarily cater to the quick
deliveries for orders via Nordstrom.com, Nordstrom mobile app and
Nordstrom.com presently serves shoppers in 98 countries, with
everyday free shipping and returns offered to its U.S customers.
The company has been successfully operating an integrated
inventory platform between its stores and e-Commerce since 2009,
while fulfilling online orders from any of its 117 full-line
stores in the U.S.
The fulfillment center will be the property of Martin and William
Murray and is being constructed by H&M Company Inc., while
Jones Lang LaSalle is Nordstrom's broker.
Nordstrom's latest store openings signify the company's
commitment to strengthen its network with the aim of driving
top-line growth. Nordstrom's focus on store expansion is evident
from the series of Rack store openings since the beginning of
fiscal 2013. As of Jan 21, 2014, Nordstrom operated 261 stores,
including 117 Nordstrom full-line stores, 140 Nordstrom Racks, 2
Jeffrey boutiques and 1 clearance outlet.
This Zacks Rank #3 (Hold) company targets to double the number of
Rack stores to more than 230 by 2016. The company has
successfully achieved its Rack stores target for 2013 by opening
24 stores, including 2 relocations. Moreover, the company targets
to open about 30 Rack stores in 2014.
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