In order to solidify its footprint in North America, leading
fashion specialty retailer
) has recently decided to open a new Nordstrom Rack store at
Baldwin Commons in Auburn Hills, Michigan. The store - scheduled
to open in spring 2013 - will include a wide selection of
apparel, accessories and shoes.
Nordstrom Rack store is an off-price retail format of
Nordstrom. It sells the company's off-season and clearance goods
from its mall stores and Nordstrom.com, at a discount of 50-60%
from original Nordstrom prices. Rack also showcases apparel,
accessories and shoes, which are specially purchased for
Nordstrom Rack at a discount of 30-70% on original prices. The
Rack concept is specifically designed to attract customers who
appreciate the brand, but are unable to afford the price tag.
The new store, spanning 34,800 square feet, will replace the
former Linens 'n Things space and share the building with
tenants, such as
Ulta Salon, Cosmetics & Fragrance, Inc
), Old Navy, etc.
Owned and managed by Lormax Stern, Kirco Development and
Walbridge, the Baldwin Commons building is located at Interstate
75 on Baldwin Road, which is one of the busiest areas in the
city. Nordstrom expects the location to help it attract customers
residing in the greater Detroit area and the residents of North
The company already operates 3 full-line and 2 Nordstrom Rack
stores in Michigan. Earlier, in September this year, the company
announced that it will open a Nordstrom Rack store at Arborland
Center in Ann Arbor, Michigan in spring 2013. The Arborland
Center is situated in southeastern Ann Arbor between the
University of Michigan and Eastern Michigan University.
Nordstrom's latest store openings signify the company's
commitment to expand its stores to drive its top-line growth. As
of October 16, 2012, Nordstrom operated 117 Nordstrom full-line
stores, 116 Nordstrom Rack, 2 Jeffrey boutiques, 1
treasure&bond store and 1 clearance store, thus bringing the
total store count to 237.
Moreover, the company remains on track to achieve its target
of opening 16 new stores in fiscal 2012 consisting of 1 full-line
store and 15 Nordstrom Rack Stores. Year-to-date, the company has
already opened 1 full-line store and 11 rack stores and will open
one more Rack store this month at Huntington Shopping Center in
Huntington, New York.
Further, Nordstrom plans to add 24 new Rack stores in fiscal
2013 and intends to operate 230 of such stores by the end of
Currently, Nordstrom has a Zacks #2 Rank, which translates to
a short-term Buy rating. However, we remain slightly cautious on
the stock and uphold our long-term 'Neutral' recommendation,
waiting to see further catalysts before becoming more positive on
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