Going ahead with its store expansion strategy, Nordstrom Inc. (JWN - Analyst Report) announced its plans to open two Nordstrom Rack stores in Tulsa, Okla. and Columbus, Ohio.
Located at Woodland Plaza in Tulsa, the 33,330 square foot Nordstrom Rack store is scheduled to open by spring 2014. Situated just across the street from Woodland Hills Mall, the Woodland Plaza houses top retail brands including Old Navy by Gap Inc. (GPS - Analyst Report), Famous Footwear and Barnes & Noble Inc. (BKS - Snapshot Report). The new Rack store will replace the previous location of Bed Bath & Beyond Inc. (BBBY - Analyst Report) in the shopping mall operated by Heitman.
Alongside, the company inaugurated its first Rack store in Oklahoma on Sep 12, 2013, at Belle Isle Station in Oklahoma City. The Belle Isle Station is also operated by Heitman.
The second Nordstrom Rack store is located at Sun Center in Columbus, situated at the cross roads of West Dublin Granville Road and Sawmill Road. It will likely open doors in spring 2014. The Rack store coming up in the property of Schottenstein Property Group will mark the company’s second Rack location in Columbus, following the recently opened store at Easton Market. Apart from this, the company already operates full-line Nordstrom store at Easton Town Center in Columbus.
Enclosing a floor area of 37,890 square feet, the new Rack store at Sun Center will occupy the space previously held by Filene’s Basement. Additionally, the company’s new Rack store is set to share business space with popular retailers, including Whole Foods Market Inc. (WFM - Analyst Report), DSW Inc. (DSW - Snapshot Report), Value City Furniture, Bed Bath & Beyond, Babies"R"Us and Old Navy.
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. As of Oct 23, 2013, Nordstrom operated 257 stores, including 117 Nordstrom full-line stores, 137 Nordstrom Racks, 2 Jeffrey boutiques and 1 clearance outlet.
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 12 more Rack stores during the remainder of 2013.
Seattle-based Nordstrom currently carries a Zacks Rank #3 (Hold).