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Nordstrom Expansion on Track, Opens Store in California

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Nordstrom, Inc. (JWN - Free Report) remains committed to its store-expansion strategy, in a bid to improve customer experience, along with boosting its overall performance. In line with the strategy, this leading fashion retailer has announced plans to inaugurate a Rack store at the Nut Tree in Vacaville, CA. The new store will be the company’s first Rack outlet in the city of Vacaville.
 
Spanning about 27,000 square feet, the new Rack store is slated to open doors this fall. This outlet will share space with retailers like The Michaels Companies Inc. , PetSmart, Best Buy Co., Inc. (BBY - Free Report) and Ulta Beauty, Inc. (ULTA - Free Report) . The Nut Tree, owned by the Dunhill Partners, is situated in the heart of the city, close to the heavily trafficked I-80 corridor.

In fact, Nordstrom has been serving customers in California since 1978, when it launched a full-line store at South Coast Plaza. Currently, the company runs 12 full-line outlets in Northern California.

Prior to the opening of the aforesaid Rack store, Nordstrom announced plans to introduce a new Rack store in Oregon this fall. Earlier, it had revealed plans to introduce two more Rack stores, one each in Maryland and New York.

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 online store, Nordstrom.com. Further, these stores stack products from other major brands sold by the company.

Nordstrom currently operates 349 outlets across 40 states. Its portfolio includes 122 full-line stores across the U.S., Puerto Rico and Canada, two Jeffrey boutiques, 216 Nordstrom Racks and two clearance stores.

Notably, the company’s solid brand image, cost saving initiatives and store expansion efforts, is well poised to deliver long-term goals. Moreover, it is progressing well to reach its long-term growth target of $20 billion by fiscal 2020. We believe Nordstrom’s technological advancements, efforts to enhance supply-chain network and marketing endeavors should further provide a boost to overall growth, going forward.

However, a glance at Nordstrom’s share price history over the past six months reveals that the stock plunged 19.2%, thus underperforming the Zacks categorized Retail – Apparel/Shoe industry, which fell 16.9%.



Nordstrom currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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