Nordstrom, Inc. JWN, which operates both Nordstrom full-line stores and Nordstrom Rack, has consistently focused on store expansion as part of its growth strategy. These efforts aim to bring the brand closer to its customers by strategically placing new locations in high-traffic shopping centers and underserved markets.
A significant aspect of this expansion has been through Nordstrom Rack, its off-price division, which targets value-conscious shoppers. Customers can also shop online via Nordstrom.com and NordstromRack.com, allowing them to pick up their purchases in-store. By providing a wide selection of products from leading brands, Nordstrom Rack aims to meet the needs of budget-conscious shoppers while maintaining a strong focus on style and quality. The store will offer easy return processes, ensuring hassle-free returns. These services are designed to integrate online and in-store experiences, providing shoppers greater flexibility and convenience.
Recent openings and planned stores highlight Nordstrom Rack’s commitment to targeting high-traffic retail centers, such as The Village at Meridian in Idaho, while expanding into underserved regions. The upcoming 25,000-square-foot store will be located in this prominent shopping destination, which features retailers like LEGO, Evereve, Warby Parker and Brandy Melville, scheduled to open in fall 2025.
The new Rack store is expected to serve the Meridian community, attracting customers through its wide range of high-quality brands at affordable prices. The evolution of Nordstrom Rack in Meridian will bring exciting fashion options to meet the evolving demands of the community. The Village at Meridian is owned by CenterCal Properties, LLC and is ideally located off Eagle Road and Fairview Avenue.
Nordstrom, which currently carries a Zacks Rank #3 (Hold), has gained 2.1% in the past three months against the industry’s decline of 1.9%.
What Makes Nordstrom Rack Unique?
Nordstrom Rack, the off-price retail division of Nordstrom, plays a key role in the company’s Closer to You strategy, which aims to provide a seamless and interconnected shopping experience across physical stores and digital platforms. Nordstrom Rack offers customers up to a 70% discount on trending apparel, accessories, beauty products, home decor and shoes from many top brands sold at Nordstrom stores.
The expansion into Meridian demonstrates Nordstrom's commitment to growing its presence in key markets and contributing to local economies. This new store is expected to create job opportunities and stimulate economic activity in the surrounding areas. This expansion highlights JWN’s commitment to increasing its physical footprint and economic impacts in the region.
What’s More?
Nordstrom has been making efforts to enhance customer experience through faster delivery. It remains focused on its long-term strategy, which builds on its market strategy to capitalize on its digital-first platform, gain market share and deliver profitable growth. For this, the company is focused on three areas, winning in important markets, expanding the reach of Nordstrom Rack and enhancing its digital capabilities.
In the fall of 2025, Nordstrom Rack is set to open multiple new stores as part of its ongoing expansion strategy. Nordstrom is making efforts to drive efficiency and improve customer experience via faster order fulfillment. Also, increased focus on Nordstrom Rack bodes well. The company continues to focus on introducing more premium brands at Rack, better assortments and increased brand awareness. It has introduced five Rack stores in the reported quarter, bringing its year-to-date total to 11. Going ahead, it intends to roll out to more markets. Management expects to open 12 more Rack stores in 2024, before the holiday season.
Three Picks You Can’t Miss
We have highlighted three other stocks in the broader sector, namely Deckers DECK, Abercrombie & Fitch Co. ANF and The Gap, Inc. GAP.
Deckers, a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). DECK delivered an average earnings surprise of 41.1% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 13.6% and 12.6%, respectively, from the year-ago reported figures.
Abercrombie, a leading casual apparel retailer, currently carries a Zacks Rank of 2 (Buy). Abercrombie has a trailing four-quarter earnings surprise of 27.9%, on average.
The Zacks Consensus Estimate for ANF’s current financial-year sales and earnings indicates growth of 13% and 64.2%, respectively, from the year-ago reported figures.
Gap operates as an apparel retail company, which offers apparel, accessories and personal care products for men, women and children, currently carrying a Zacks Rank #2.
The Zacks Consensus Estimate for The Gap’s current fiscal-year sales and earnings indicates growth of 0.5% and 31.5%, respectively, from the year-ago quarter’s reported numbers. GAP has a trailing four-quarter average earnings surprise of 142.8%.
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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.
