) will soon be able to lure the people of New York City and
millions of tourists, as the company recently entered into an
agreement with Extell Development Company to open a full-line
store. It took Nordstrom a long time to find a proper location in
As per the agreement, Extell will build a 7-storey department
store for Nordstrom, which will be at the base of a high-rise
tower. It will be located at 225 West 57th Street, Manhattan, NYC
and will also accommodate various other retailers, hotels and
residences. The store, which is expected to be open in 2018, will
occupy an area of 285,000 square feet.
The company which competes with other upscale specialty
retailers such as
) already operates two stores in Manhattan, one each under its
Nordstrom Rack Store and Treasure & Bond concept.
We believe the initiative will create brand awareness of the
company throughout the world, as millions of tourist travels to
Manhattan to shop at luxury stores. The company offers both branded
and private label merchandise, which are positioned in the upscale
segment of the industry and targeted toward the aspiring middle
Nordstrom's latest store openings reflect its commitment to
expanding stores network with the aim to drive its top-line growth.
Nordstrom's focus on store expansion is evident from its string of
Rack stores openings in Orange, California; Salt Lake City, Utah;
Huntington, New York and Upland, California, since the start of
In fiscal 2011, Nordstrom added 18 new stores, which contributed
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, aiming to open a total of 16 new stores,
comprising 1 full-line store and 15 Rack stores.
Nordstrom currently maintains a Zacks #3 Rank, which translates
into a short-term Hold rating. Our long-term recommendation on the
stock remains Neutral.
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