) has decided to shutter its 33,000 square feet Rack store at
Long Beach City Place in Long Beach, Calif. After enjoying nearly
12 years of patronage from the customers of Long Beach, this
store will cease to operate from late Jan 2014, due to the expiry
of the lease of this store.
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However, Nordstrom highlighted that their patrons will receive
continued services from the three nearby Nordstrom Rack stores
located at Lakewood, South Bay and Edinger. Moreover, the company
hinted that it looks forward to a comeback with a more promising
location to provide better service.
Further, the company indicated that its employees at the City
Place store will be absorbed into the three nearby Rack stores
based on their eligibility and potential. However, for employees
unwilling to take up jobs in these stores, the company has
offered a severance package.
Nordstrom's Rack stores generally offer merchandise from
Nordstrom stores and Nordstrom.com at a significantly reduced
price to customers. Products at these stores are sold with
discounts 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% - 70%.
Nordstrom offers a broad array of over 500 brands, targeted
toward the whole family, through a strong nationwide network of
more than 240 stores situated across 31 states. Nordstrom through
its globally recognized brands caters primarily to the upscale
segment, enabling it to generate high margin revenue. The company
also appeals to its consumers by offering a more inclusive
selection of quality merchandise, which further distinguishes it
from other mall-based department store retailers.
We believe Nordstrom's sustained focus on expanding its store
network along with enhancing online sales and consumer retention
strategies will boost its top line and profitability. Nordstrom
is poised to continue its store expansion strategy in the years
ahead, targeting to double the number of Rack stores to more than
230 by 2016, with roughly 24 openings in 2013 and more than 30 in
2014. Currently, the company is left with 14 more Rack openings
over the rest of 2013.
As of Jun 17, 2013, Nordstrom operated 248 stores, including 117
Nordstrom full-line stores, 127 Nordstrom Racks, 2 Jeffrey
boutiques, 1 treasure&bond store and 1 clearance store.
Nordstrom currently maintains a Zacks Rank #4 (Sell). Other
stocks that are performing well in the retail-apparel/shoe sector
Fossil Group Inc.
Stein Mart Inc.
), all of which carry a Zacks Rank #2 (Buy).