In keeping with its store expansion strategy, Nordstrom Inc. (JWN - Free Report) plans to bring up a new Nordstrom rack store in Chestnut Street, Philadelphia. The 39,000 square-feet store slated to open doors by the fall of 2014 will mark the company’s first store in Philadelphia.
Apart from this, the company already operates full-line Nordstrom stores and Rack stores in neighboring Cherry Hill, N.J., and King of Prussia, Pa. and 1 Rack store in Willow Grove, Pa.
Occupying the first three floors of the eight storied building owned by JEMB Realty Corporation, the new Rack store will replace the space previously held by Daffy’s. This completely renovated location was first occupied by department store Bonwit Teller.
Nordstrom’s Rack stores generally offer merchandise from Nordstrom stores, Nordstrom.com and special collections from many of the renowned brands offered at Nordstrom at a significantly reduced price to customers. A vast assortment of branded apparel, accessories and shoes that are available at Nordstrom stores are offered to customers at a discount of about 30%–70%.
Nordstrom’s latest store openings signify the company’s commitment to strengthen its network with the aim of driving top-line growth. Nordstrom’s focus on store expansion is evident from the series of Rack store openings since the beginning of fiscal 2013.
Nordstrom targets to double the number of Rack stores to more than 230 by 2016, with roughly 24 openings in 2013 and more than 30 in 2014. Currently, the company plans to open 14 new Rack stores and relocate 2 Rack stores and 1 full-line store during the rest of 2013.
As of Oct 1, 2013, Nordstrom operated 252 stores, including 117 Nordstrom full-line stores, 132 Nordstrom Racks, 2 Jeffrey boutiques and 1 clearance outlet.
Seattle-based Nordstrom currently carries a Zacks Rank #3 (Hold). Other stocks worth considering in the apparel-shoe space are Citi Trends Inc. , DSW Inc. (DSW - Free Report) and ANN Inc. . Of these, Citi Trends has a Zacks Rank #1 (Strong Buy), while DSW and ANN carry a Zacks Rank #2 (Buy).