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Nordstrom (JWN) to Expand in Illinois with a New Rack Store

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Keeping pace with its domestic store growth endeavors, Nordstrom, Inc. (JWN - Free Report) announced plans to introduce a Nordstrom Rack at Mellody Farm in Vernon Hills, IL. Notably, this will mark Nordstrom’s 15th Rack store in Chicagoland, where it currently operates four full-line outlets. Mellody Farm, which is currently developed by Regency Centers, is expected to be a regional retail center catering to the Lake County community.

Spread over 30,000 square feet, the new Rack store is slated to open doors in fall 2018. The store will be situated roughly 30 miles north of downtown Chicago, at the junction of Milwaukee Avenue and Townline Road. The new store will join Whole Foods Market, Inc. , along with several best-in-class restaurants and other retailers.

Prior to the opening of this Rack store, the company had announced plans to open stores at Kildeer, IL and Schererville, IN, which are slated to open doors in the coming spring.

Being the off-price retail segment of the company, Nordstrom Rack 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 as well as its online store, Nordstrom.com. Additionally, these stores stack products from other major brands sold by the company.

Nordstrom currently operates 349 outlets across 40 states. Its portfolio includes 123 full-line stores across the U.S., Puerto Rico and Canada, two Jeffrey boutiques, 215 Nordstrom Racks and two clearance stores.

Notably, the company along with its solid brand image, amendments to the operating model for cost savings and continuous store expansion, is well poised to deliver on its long-term goals. Further, we believe Nordstrom’s technological advancements; efforts to enhance supply-chain network and marketing endeavors should further boost up its overall growth.

However, the company’s presence in the consumer-driven apparel space, keeps it exposed to the risks of changing tastes, preferences and spending behavior of consumers. Also, stiff competition remains a threat to margins.

We noted that this Zacks Rank #3 (Hold) stock has increased nearly 2.5% in the past six months, apparently outperforming the Zacks Categorized Retail – Apparel/Shoe industry’s decline of 7.9%.



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Tilly's, with a long-term earnings growth rate of 13% has skyrocketed 108.9% in the past six months.

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