In keeping with its store expansion strategy, Nordstrom Inc. (JWN - Analyst Report) plans to open a new Nordstrom Rack store in Buffalo, NY. The 35,000 square-feet store, slated to open in the fall of 2015, will mark the company’s first store in Western New York.
This outlet will be a part of the distinguished 650,000 square-feet shopping center, Boulevard Consumer Square. Benderson Development Company is the owner of this property.
Situated at the suburb of Amherst, about eight miles northeast of downtown Buffalo, Boulevard Consumer Square accommodates nearly 40 specialty retailers and restaurants. Its pre-existing retail and lifestyle tenants include Bed Bath & Beyond Inc. (BBBY - Analyst Report), Target Corp. (TGT - Analyst Report), Barnes & Nobel, Inc. (BKS - Snapshot Report), Lowe’s Companies Inc. (LOW - Analyst Report), Trader Joe's and many more.
Nordstrom Rack, being the off-price retail segment of the company, offers fashion-savvy customers with 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 bought from other big brands sold by the company.
Nordstrom’s focus on store expansion is evident from the series of Rack store openings since the beginning of fiscal 2014. Its latest store openings signify the company’s commitment to strengthen its network with the aim of driving top-line growth.
In its recently reported results for the first quarter of fiscal 2014, the company revealed that it opened 10 new Rack stores during the quarter, increasing the total store count to 270 as against 260 and 245 at the end of fourth quarter and first quarter, respectively, of fiscal 2013. The 270 stores include 117 full-line stores, 150 Nordstrom Rack stores, 2 Jeffrey boutiques and 1 clearance outlet.
Looking ahead, this Zacks Rank #3 (Hold) company targets to further expand its store base by opening 20 new stores in the remaining period of fiscal 2014, which include 3 full-line stores and 17 Rack stores.