Nordstrom Plans New Rack Store

Seattle-based Nordstrom Inc. (JWN - Analyst Report) has laid down plans to open another Nordstrom Rack store at the Oakway Center in Eugene, Ore. by fall of 2013.

Joining the company’s 5 full-line and 4 Rack stores in the state of Ore., the new Rack store will be located off the Interstate 105, within three miles of the University of Oregon campus. The company’s stores in Oregon include its first Rack store in Clackamas, which has been serving the public since 1983. Further, the company has been serving its Eugene customers for more than 15 years now with its Nordstrom Place Two store.

Housed in The Oakway Center, the new Rack store will enclose about 32,000 square feet space in the property of McKay Investment Company LLC. The store will occupy the space previously held by Borders book store. Other stores in the upscale mixed-use lifestyle center include Trader Joe's, Bed Bath & Beyond Inc. (BBBY - Analyst Report), Gap Inc.’s (GPS - Analyst Report) Old Navy, Talbot's, and Pottery Barn.

Nordstrom’s Rack stores generally offer merchandise from Nordstrom stores and Nordstrom.com at a significantly reduced price to customers. Products at these stores are sold with discounts of roughly 50% to 60% from the original Nordstrom tags. Nordstrom Rack also carries a vast assortment of branded apparel, accessories and shoes that are available at Nordstrom stores, and are offered to customers at a discount of about 30% to 70%.

Nordstrom’s latest store openings signify the company’s commitment to strengthen its network with the aim of driving top-line growth. As of Feb 22, 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.

Nordstrom currently maintains a Zacks Rank #3 (Hold). The other stock that is performing well in the retail-apparel/shoe sector include Citi Trends Inc. (CTRN - Analyst Report), which carries a Zacks Rank #1 (Strong Buy).