Leading fashion retailer, Nordstrom Inc. (JWN - Analyst Report), is set to open two more stores, including a Nordstrom Rack store at Maine Crossing Shopping Center in South Portland, Maine, and a full-line store at Ridgedale Center in Minnetonka, Minnesota.
Located in the 274,000 square feet open-air Maine Crossing Shopping Center, the company’s first store in Maine will encompass an area of 30,000 square feet, occupying the space vacated by Old Navy. The store will share space with other leading retailers including Target Corp. (TGT - Analyst Report), Bed Bath & Beyond Inc. (BBBY - Analyst Report), A.C. Moore and The Men's Wearhouse Inc. (MW - Snapshot Report). The company plans to open the store to public by spring 2013.
Sited in the Ridgedale Center, Nordstrom’s latest full-line store will join its existing store at Mall of America, which is about 20 miles from Ridgedale Center. Planned to be spread over a 138,000 square feet area, this store will be the company’s second in the state. The Ridgedale Center is the property of General Growth Properties Inc. (GGP - Analyst Report). In addition to its full-line stores, the company serves its customers in the area, operating two Nordstrom Rack stores – at Mall of America and at Arbor Lakes in Maple Grove. This store is scheduled to be inaugurated in the fall of 2015.
Nordstrom’s latest store openings signify the company’s commitment to strengthen its network with the aim of driving top-line growth. As of January 4, 2013, Nordstrom operated 240 stores, including 117 Nordstrom full-line stores, 119 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure&bond store and 1 clearance store.
The company has targeted to open 16 new stores in fiscal 2012 consisting of 1 full-line store and 15 Nordstrom Rack Stores. Additionally, the company has planned to add 24 new Rack stores in fiscal 2013 and intends to operate 230 Rack stores by the end of 2016.
Nordstrom currently maintains a Zacks #3 Rank, which translates into a short-term Hold rating. Moreover, our long-term recommendation on the stock remains Neutral.