), a leading Seattle-based fashion specialty retailer, has decided
to move to a larger space within the Ward Centers in Honolulu. The
company will move from the current 34,000 square feet Nordstrom
Rack store at Ward Center to a two-level 45,000 square feet store
in Phase Two of Ward Village Shops within Ward Centers.
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The Ward Village Shops development is intended to bring new life to
the Ward Center, which is located in the heart of the Kaka'ako
district and close to Waikiki. The new Nordstrom Rack store will
face the Auahi Street, connecting to the seventh level parking
deck, which houses over 700 stalls. Dallas, Texas-based
The Howard Hughes Corporation
) is the owner of the Ward Center in Honolulu.
Nordstrom first stepped into Honolulu in 1966 by opening shoe
departments in Liberty House locations all over the island.
Currently, the company has a full-line store, covering an area of
200,000 square feet, at Ala Moana Center, near its current Rack
Nordstrom Rack stores generally offer merchandises that are in
vogue from Nordstrom stores and Nordstrom.com at a significantly
reduced price to customers. Products at these stores are sold at a
discount of roughly 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
are offered to customers at a discount of about 30% to 70%.
Nordstrom's latest store openings signify the company's commitment
to expand its store network with the aim of driving top-line
growth. As of September 25, 2012, Nordstrom operated 117 Nordstrom
full-line stores, 113 Nordstrom Rack, 2 Jeffrey boutiques, 1
treasure&bond store and 1 clearance store, thus bringing the
total store count to 234.
Moreover, the company has targeted to open 16 new stores in fiscal
2012 consisting of 1 full-line store and 15 Nordstrom Rack Stores.
The company has also planned to add 24 new Rack stores in fiscal
2013 and intends to operate 230 Rack stores by the end of 2016.
Amidst these positive factors, Nordstrom faces intense competition
from other well-established players in the specialty retail sector
The Gap Inc.
Limited Brands Inc.
Abercrombie & Fitch Co.
). Competitive pressure within the retail space may force the
company to reduce its sales price, bringing down its margins.
Nordstrom currently maintains a Zacks #3 Rank, which translates
into a short-term Neutral rating. However, our long-term
recommendation on the stock remains Neutral.