Striding ahead with its store expansion strategy, Nordstrom Inc. (JWN - Analyst Report) announced its plans to open a Nordstrom rack store by the spring of 2014 in Riverside County, CA. The 45,000 square-feet mall will be located at the 91 Freeway and Central Avenue, Riverside Plaza.
The Riverside Plaza boasts the presence of retailers, services and restaurants such as Trader Joe's, Vons, Forever 21, Jos. A Bank Clothiers Inc. , Regal Cinemas, California Pizza Kitchen and Panera Bread Co. (PNRA - Analyst Report). Nordstrom is likely to benefit from this ambience.
Nordstrom’s current store count stands at 22 full-line stores and 24 Rack stores across Southern California. The company also has a full-line store at The Galleria at Tyler in Riverside.
Nordstrom’s Rack stores generally offer merchandise from Nordstrom stores, Nordstrom.com and special collections from many of the renowned brands offered at Nordstrom at a significantly reduced price to customers. A vast assortment of branded apparel, accessories and shoes that are available at Nordstrom stores are offered to customers at a discount of about 30%–70%.
Nordstrom’s latest store openings signify the company’s commitment to strengthen its network with the aim of driving top-line growth. Nordstrom’s focus on store expansion is evident from the series of Rack store openings since the beginning of fiscal 2013. So far, the company has opened 9 Rack stores including Webster, TX, Brooklyn, NY, Skokie, IL and West Palm Beach, FL.
Nordstrom targets to double the number of Rack stores to more than 230 by 2016, with roughly 24 openings in 2013 and more than 30 in 2014. Currently, the company plans to open 13 more Rack stores during the remainder of 2013.
As of Sep 5, 2013, Nordstrom operated 247 stores, including 117 Nordstrom full-line stores, 127 Nordstrom Racks, 2 Jeffrey boutiques and 1 clearance outlet.
Seattle-based Nordstrom currently carries a Zacks Rank #3 (Hold). Another stock worth consideration is Citi Trends, Inc. (CTRN - Analyst Report), which has a Zacks Rank #1 (Strong Buy).