Zacks_Analysts' Blog : Nordstrom Expands in Orange Country - Analyst Blog

Nordstrom Inc. (JWN), one of the largest fashion specialty retailers in the U.S., intends to further expand its Rack concept by opening a new store in Huntington Beach, California. The store that is scheduled to open in fall 2012 will include a wide selection of apparels, accessories and shoes of the Nordstrom Rack store.

Nordstrom Rack store is an off-price retail format of Nordstrom that sells the company's off-season and clearance goods from its mall stores and Nordstrom.com, at a discount of 50-60% from original Nordstrom prices. Rack also showcases apparel, accessories and shoes, which are specially purchased for Nordstrom Rack at 30-70% lesser than original prices. The Rack concept is specifically designed for customers who are appreciative of the brand but cannot afford it due to its higher pricing.

The new store, spanning across 34,000 square feet, will share the floor with retailers such as Dick’s Sporting Goods Inc (DKS), Michaels and PetSmart Inc (PETM).The new store will now be a part of Edinger Plaza shopping center, which is owned and managed by Watt Commercial properties.

This store will be the company’s fifth Nordstrom Rack store in California. Apart from this, the company also operates six full-line stores in the country.

About Watt Commercial Properties

A division of Watt companies, Watt Commercial Properties specializes in development and management of shopping centers in urban markets, mostly located in Southern California region. The company has retail spaces spanning over 2 million square feet in 39 shopping centers. In the last 60 years, the company has built over 8 million square feet of manufacturing and commercial space, shopping centers totaling more than half of a century, and has also constructed homes for over 100,000 families. Moreover, the company developed 3 first class hotels and half a dozen planned communities.

Store Update

At present, the Seattle-based company, Nordstrom, operates a network of 225 stores located in 30 states, of which 117 are full-line stores, 104 Nordstrom Racks, two Jeffrey boutiques, one treasure&bond store and one clearance store.

Nordstrom, which competes with Gap Inc. (GPS) and Abercrombie & Fitch Co. (ANF), currently, holds a Zacks #3 Rank, implying a short-term 'Hold' rating on the stock. Besides, the company retains a long-term 'Neutral' recommendation on the stock.