Nordstrom Inc. (JWN), one of the largest fashion specialty retailers in the U.S., has its eyes on further expanding its Rack concept and plans to open stores in Arlington mall and Cherry Hill, New Jersey. Spring 2011 will unveil the wide selection of apparel, accessories and shoes of the Nordstrom Rack store at both the places.
Nordstrom Rack store is an off-price retail format of Nordstrom, which sells Nordstrom’s own off-season and clearance goods from its mall stores and Nordstrom.com at 50%-60% off original Nordstrom prices. Rack also showcases apparel, accessories and shoes that are specially purchased for Nordstrom Rack with a feature of 30%-70% off original prices. The Rack concept is specially designed for customers who appreciate the brand but cannot afford its higher prices.
Arlington Mall
The store will join the exclusive tenancy in the Parks at Arlington mall and is expected to roll out in spring 2011. The store, which will be a tenant of 31,673 square-feet area of the center, will join the floor with Macy’s, Inc. (M), Dillard’s Inc. (DDS), J.C. Penney Company, Inc. (JCP), Banana Republic, Forever 21 and Barnes & Noble, Inc. (BKS).
Cherry Hill, New Jersey
Towne Place at Garden State Park in Cherry Hill will open its door for a new Nordstrom Rack store in spring 2011. The store will occupy an area of approximately 36,000 square-feet. Barnes & Noble, J.Jill, The Cheesecake Factory Inc. (CAKE), BRIO Tuscan Grille and McCormick & Schmick’s Seafood Restaurants, Inc. (MSSR) are some other restaurants and retailers sharing the occupancy at the place.
Other Openings
Recently, Nordstorm announced that it will open a Nordstrom Rack store at Annapolis Harbor Center in Annapolis and at Westfield West Covina mall in West Covina, California, also in spring 2011.
Same-Store Sales Trend at Rack
The retailer was generating positive results at Rack stores until March, with positive same-store sales of 2.3% in February and 4.7% in March. However, it witnessed a reversal in trend by turning negative 1.8% in April and 1.1% in May. However, full-line stores helped to mitigate this softness by delivering positive comps of 6.5% and 3.9% in April and May, respectively.
Our Take
We believe that the Rack stores are a good option in a lackluster economy with consumer spending at a low. Customers whose pockets do not warrant paying higher prices at full-line stores can avail of Rack stores where branded products are sold at lower prices.
Store Update
Nordstrom accessories and apparels are available in 114 full-line stores, 76 Nordstrom Racks, two Jeffrey boutiques and one clearance store in 28 states in the U.S.
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