) has decided to shutter its Rack store at Florida Mall in Orlando,
FL. After enjoying nearly 12 years of patronage from the customers
of Orlando, this store will cease operations from Aug 16, 2014,
which is the store's lease expiry date.
Closing the store will impact approximately 190 non-seasonal
employees. The company stated that it will put forth its utmost
efforts to employ them at its other Rack stores. However, for
employees who cannot be accommodated at any other stores, Nordstrom
will offer a severance package.
Though the company has the rights to renew the lease agreement,
it does not want to operate its Rack store at this mall anymore due
to its underperformance. For the Florida Mall store to return back
on track, huge amount of investment is required, but Nordstrom does
not think it is worth the risk.
Nordstrom highlighted that their patrons will receive continued
services from the nearby Nordstrom Rack store located at Millenia
Crossing. Currently, the company operates ten Rack and eight
full-line stores in Florida.
Nordstrom is going to open two new Rack stores in the state,
which are to be located in West Palm Beach and Lake Brandon,
schedule to inaugurate on Oct 9 and Oct 30, respectively. Apart
from this, the company will open a full-line store in the state, at
St. Johns Town Center in Jacksonville on Oct 10, 2014.
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%.
The company mainly focuses on omni-channel growth strategy to
boost its top and bottom line performances. Nordstrom's focus on
store expansion is evident from the series of Rack store openings
since the beginning of fiscal 2014. Its latest store opening at
East Bay Bridge Shopping Center, Emeryville, CA signifies the
company's commitment toward strengthening its network with an aim
of driving top-line growth.
Other Stocks to Consider
Currently, Nordstrom carries a Zacks Ranks Rank #2 (Buy). Some
better-ranked apparel/shoe retailers include
Christopher & Banks Corporation
Citi Trends, Inc.
The Men's Wearhouse, Inc.
), all carrying Zacks Rank #1 (Strong Buy).
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