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Nordstrom's Relocated Rack Store Likely to Attract Traffic

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In an attempt to enhance customers' experience, Nordstrom Inc.JWN recently announced plans to relocate one of its Rack stores. The company intends to shift its Rack store, housed at 280 Metro Center, to Serramonte Center in Daly City, CA.

Spanning over 40,000 square feet, the relocated store is slated to open doors in fall 2017. Located south of the crossroads of Pacific Coast Highway and 280 Metro Center, the new outlet is very conveniently placed, being close to the old store.

The Serramonte Center is spread over roughly 200,000 square feet and the addition of Nordstrom's Rack store to it is likely to benefit the latter by attracting more shoppers, given Serramonte's popularity and size. Also, Nordstrom will share space with other major retailers, including Target Corp. TGT , J. C. Penney Company, Inc. JCP , Dick's Sporting Goods Inc. DKS and Macy's.

Nordstrom has been on an expansion spree since a long time. The company opened its first California store in 1978, at South Coast Plaza, and presently operates 13 Rack stores in the northern part of the state. Also, it is on track to introduce another Rack store in Santa Rosa, in fall 2016 that underscores its focus on growth.

Nordstrom Rack, being the off-price retail segment of the company, offers fashion-savvy customers a wide range of on-trend apparel, footwear and other accessories at discounted prices. These Racks usually keep items from the main Nordstrom stores and its online store, Nordstrom.com. Alongside these, the stores stack products from other big brands sold by the company.

Nordstrom's focus on store expansion is further evident from the series of Rack store openings since the beginning of fiscal 2014. Its latest store openings signify this Zacks Rank #2 (Buy) company's commitment toward strengthening its network, with an aim to drive top-line growth.

Currently, the company operates 305 outlets across 38 U.S. states and Canada, including 119 full-line stores; 2 Jeffrey boutiques; 183 Nordstrom Racks and 1 clearance store.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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