Nordstrom Inc.
(
JWN
), a leading fashion specialty retailer in the United States, came
up with a plan to inaugurate its second Nordstrom Rack store in San
Antonio, Texas. The new Texas store will be located at the Alamo
Quarry Market, with the showroom spread out in an area of about
32,000 square feet. The company expects the store to be open and
operational by fall 2012.
Nordstrom's first Nordstrom Rack store in San Antonio is
situated at The Rim, while the company also has a full-line store
at The Shops at La Cantera in San Antonio, Texas.
Located in central San Antonio, Alamo Quarry Market is a
lifestyle and power shopping center owned and operated by
American Assets Trust Inc.
(
AAT
). Other retailers doing business in the shopping center include
Bed Bath & Beyond Inc.
(
BBBY
),
Office Max Inc.
(
OMX
),
Gap Inc.
(
GPS
) and
Whole Foods Market Inc.
(
WFM
) along with a movie theatre. It also houses brands like Banana
Republic, Old Navy, Pottery Barn, Restoration Hardware and several
restaurants.
Nordstrom's Nordstrom Rack stores generally offer on-trend
merchandise from Nordstrom stores and Nordstrom.com at significant
cost savings to customers. Products at these stores are sold with
discounts of about 50% to 60% from the original Nordstrom tags.
Nordstrom Rack also carries a vast assortment of branded apparel,
accessories and shoes that are available at Nordstrom stores, and
offered to customers with savings of about 30% to 70%.
Nordstrom's latest store openings signify the company's
commitment to expand its store network with the aim to drive its
top-line growth. The company's focus on store expansion was also
evident from the opening of four new Nordstrom Rack stores in the
month of March 2012, including the stores opened at Orange,
California; Salt Lake City, Utah; Huntington, New York; and Upland,
California.
In fiscal 2011, Nordstrom added 18 new stores, contributing
significantly to a 12.7% year-over-year growth in fiscal 2011 net
sales. Moreover, Nordstrom plans to continue its store expansion
strategy in fiscal 2012 targeting to open a total of 16 new stores,
comprising 1 full-line store and 15 Rack stores.
Nordstrom offers a broad array of over 500 brands, targeted
toward the whole family, through a strong nationwide network of 226
stores situated across 30 states. The company's strong line up of
globally known brands acts as a competitive advantage for Nordstrom
while bolstering its well-established position in the market.
However, intense competition from other established players and
exposure to seasonal fluctuations may undermine the company's
future growth prospects. Currently, Nordstrom maintains a Zacks #3
Rank, which translates into a short-term Hold rating. Our long-term
recommendation on the stock remains Neutral.
AMER ASSETS TR (
AAT
): Free Stock Analysis Report
BED BATH&BEYOND (
BBBY
): Free Stock Analysis Report
GAP INC (
GPS
): Free Stock Analysis Report
NORDSTROM INC (
JWN
): Free Stock Analysis Report
OFFICEMAX INC (
OMX
): Free Stock Analysis Report
WHOLE FOODS MKT (WFM): Free Stock Analysis
Report
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