Nordstrom, Inc. (JWN - Free Report) recently announced the launch of Nordstrom Local, its first modern retailing concept store that does not stock merchandise. Notably, it is quite different from the traditional retail concept, a neighborhood store, where the company’s services are easily available in a centralized location.
Slated to open doors on Oct 3 at Melrose Place in West Hollywood, CA, this 3,000 square-foot store is likely to focus on personal styling, consultations, appointments along with buy online, pick-up in-store and same-day delivery services. Notably, the merchandise will enter this store after having consultations with personal stylists. This leading fashion retailer will also relocate one of its stores from Westside Pavilion to Century City on the same day.
Furthermore, this inventory-free store will house a styling suite with eight dressing rooms around a central hall where customers can relax and have discussions with the personal stylists. This Los Angeles-based store will also cater to on-site tailoring as well as alterations, coupled with Trunk Club stylists, curbside pickup, digital boards with tailored fashion recommendations. Additionally, various modes of refreshment with gift cards and easy return processes from stores as well as online will be present there.
We note that Nordstrom has brought this modern retailing concept to suit the needs of the challenging retail landscape. In fact, the retail sector is on a transformation mode, where various companies are shifting their focus to newer store concepts with maximum online services. To this end, the new store is expected to cater to its customers the best shopping experience with valuable and faster services.
Apart from Nordstrom, Target Corporation (TGT - Free Report) also continues to lay emphasis on developing flexible format stores to penetrate deeper into urban areas.
Markedly, Nordstrom runs in coherence with the evolving retail industry that is focused on offering maximum choices to customers for enhancing their shopping experience. Also, the company continues to efficiently allocate a major portion of its capital toward its multichannel growth strategy focused on improving its merchandise offerings, developing IT infrastructure to enhance web and mobile experience of customers, renovating stores with a modern look, and developing fulfillment centers to enable speedy delivery to online customers.
Consequently, this Zacks Rank #3 (Hold) stock was up 2.5% in the last six months, as against the industry’s decline of 20.5%. Moreover, the company has a VGM Score of A, with a long-term earnings growth rate of 6%.
Two Retail Stocks in the Limelight
Better-ranked stocks in the same industry include Abercrombie & Fitch Co. (ANF - Free Report) and The Children's Place, Inc. (PLCE - Free Report) .
Abercrombie & Fitch, with a long-term earnings growth rate of 14%, has delivered positive earnings surprise of 52.9% in the last quarter. Currently, the stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Children's Place has pulled off an average positive earnings surprise of 16.3% in the trailing four quarters. Also, it carries a Zacks Rank #2 (Buy), with a long-term earnings growth rate of 9%.
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