Nordstrom’s North Carolina Debut

Nordstrom Inc. (JWN - Analyst Report), a leading fashion specialty retailer, has recently announced plans to open a 33,000 square feet Nordstrom Rack in North Carolina, making its debut in the city.
 
Nordstrom Rack is the off-price division of Nordstrom Inc. The first Nordstrom Rack was opened in the basement of the Downtown Seattle store in 1975 as a clearance department. With a huge initial response, it has since grown into a separate division of the company. Currently, there are 69 Nordstrom Rack stores across 21 states in the U.S.
 
The new store, the first of its kind in North Carolina, is expected to open in the fall of 2010 at a prime location in the city. The store would offer merchandise at fire-sale prices with discounts of 50% − 60% to regular prices.
 
Currently, Nordstrom has about 184 stores spread across 28 states in the US, offering a selection of brand name and private label merchandise. The company sells its products through various channels including Nordstrom full-line stores, Nordstrom Rack off-price stores, Last Chance clearance stores, and Jeffrey boutiques, besides the catalog and the Internet.
 
Despite a reduction in disposable income and lower consumer discretionary spending due to the continued economic downturn, Nordstrom has continually opened new stores to attract more customer traffic. The company is upbeat about the upcoming holiday season and expects to bolster its sales through increased customer footfall.

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