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Nordstrom (JWN) Expands in Canada with Ontario Rack Store

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Taking its Canadian expansion forward, the Seattle-based Nordstrom Inc. (JWN - Free Report) is on track to grow its Rack store base in the country. The company announced plans to launch another Nordstrom Rack in Ontario. The store, located at the Heartland Town Centre in Mississauga, is slated to open doors in fall 2018.

Spanning about 35,000 square feet, the store will mark the company’s third location in the greater Toronto area. Previously, it had announced plans to open stores at One Bloor and Vaughan Mills in the same region.

The Heartland Town Centre, which is a property of Orlando Corporation, is situated west of downtown Toronto. It has an advantageous position just off Highway 401. Further, the store will be ideally located at the crossroads of Mavis Road and Britannia Road. Additionally, the new Rack store will further enhance the merchandise and brand offerings of the shopping center, which already houses retailers like Costco Wholesale Corp. (COST - Free Report) , Loblaws, Marshalls by TJX Companies Inc. (TJX - Free Report) , Winners, H&M and others.

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

The fashion specialty retailer has made significant progress with its store expansion plans in Canada, which was first announced in 2012. To date, the company has introduced five full-line stores − at CF Chinook Centre in Calgary on Sep 19, 2014, CF Rideau Centre in Ottawa on Mar 6, 2015, CF Pacific Centre in Vancouver on Sep 18, 2015, CF Toronto Eaton Centre on Sep 16, 2016, and Yorkdale Shopping Centre on Oct 21, 2016. The company is on track to open another full-line store in the Toronto area at CF Sherway Gardens in fall 2017. With this, the company will complete its initial target of introducing six full-line stores in Canada.

Further, the aforementioned Vaughan Mills and One Bloor Nordstrom Rack stores remain on track to open doors in spring 2018.

Nordstrom currently operates 349 outlets across 40 states. Its portfolio includes 123 full-line stores across the U.S., Puerto Rico and Canada, two Jeffrey boutiques, 215 Nordstrom Racks and two clearance stores.

Notably, the company, with its solid brand image, amendments to the operating model for cost savings, and continuous store expansion, is well poised to deliver on its long-term goals.

Further, Nordstrom has an impressive stock price record as its shares have gained 9.3% in the last six months, outperforming the Zacks categorized Retail – Apparel/Shoe industry’s decline of 3.5% in the same period.



Zacks Rank & Key Pick

Nordstrom currently has a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is The Children's Place Inc. (PLCE - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Children's Place has an average positive earnings surprise of 36.3% in the trailing four quarters. The stock, with a long-term growth rate of 10.3%, has seen positive estimate revisions for the current quarter in the last seven days.

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