Nordstrom Inc. (JWN), a leading fashion specialty retailer, recently announced plans to open a 36,000 square feet Nordstrom Rack at Arrowhead Crossing shopping center in Peoria, Arizona.
 
Nordstrom Rack is the off-price division of Nordstrom Inc. The first Nordstrom Rack was opened in the basement of the Downtown Seattle store in 1975 as a clearance department. With a huge initial response, it has since grown into a separate division of the company. Currently, there are 69 Nordstrom Rack stores across 21 states in the U.S.
 
The new store would be the third of its kind in Arizona, the other two being located in Scottsdale and Chandler. The new Nordstrom Rack is expected to open in the fall of 2010 and will join a host of other retailers at the shopping center, including DSW, Barnes & Noble and ULTA. The store would offer merchandise at fire sale prices with discounts of 50% – 60% to regular prices.
 
Currently, Nordstrom has about 184 stores spread across 28 states in the US, offering a selection of brand names and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, Nordstrom Rack off-price stores, Last Chance clearance stores, and Jeffrey boutiques; and through catalog and the Internet.
 
Despite a reduction in disposable income and lower consumer discretionary spending due to the continued economic downturn, Nordstrom has continually opened new stores to attract more customer traffic. The company is upbeat about the upcoming holiday season and expects to bolster its sales through increased customer footfalls.
Read the full analyst report on “JWN”
Zacks Investment Research