Nordstrom's Expansion Strategy on Track: New Rack Store Opening in MA
The Seattle-based fashion retailer, Nordstrom, Inc. JWN, is set to open a Nordstrom Rack store in Hyannis, MA, in fall 2025. The upcoming 25,000-square-foot store will be located in The Landing Shopping Center, a prominent retail destination, featuring major retailers, such as Whole Foods, Panera Bread, Old Navy and The Paper Store.
The new Rack store is expected to serve the Hyannis community, attracting customers through its wide range of high-quality brands at affordable prices. The evolution of Nordstrom Rack in Hyannis will bring exciting fashion options to meet the evolving demands of the community. The Landing Shopping Center at Hyannis is owned and managed by WS Development.
The Hyannis Nordstrom Rack store will offer a range of convenient services to create a seamless shopping experience. Customers can also shop online via Nordstrom.com and NordstromRack.com, with the option to pick up their purchases in-store. The store will offer easy return processes, ensuring hassle-free returns. These services are designed to integrate online and in-store experiences, providing shoppers with greater flexibility and convenience.
Nordstrom stock, which currently carries a Zacks Rank #1 (Strong Buy), has risen 16.1% in the past six months, outpacing the industry’s decline of 0.2%.
Image Source: Zacks Investment Research
Nordstrom Rack's Offerings and Impact
Nordstrom Rack, the off-price retail division of Nordstrom, plays a key role in the company’s Closer to You strategy, which aims to provide a seamless and interconnected shopping experience across physical stores and digital platforms. The store offers customers up to 70% discount on trending apparel, accessories, beauty products, home decor and shoes from many of the top brands sold at Nordstrom stores.
Nordstrom is dedicated to investing in the diverse communities it serves. Nordstrom Rack stores are designed to attract a broad customer base by offering high-quality, fashionable items at significant discounts. By providing a wide selection of products from leading brands, Nordstrom Rack aims to meet the needs of budget-conscious shoppers while maintaining a strong focus on style and quality.
The expansion into Massachusetts demonstrates Nordstrom's commitment to growing its presence in key markets and contributing to local economies. This new store is expected to create job opportunities and stimulate economic activity in the surrounding areas. Currently, Nordstrom operates four Nordstrom stores and seven Nordstrom Rack stores across Massachusetts, contributing to the State's economy by generating more than 900 jobs. This expansion highlights JWN’s commitment to increasing its physical footprint and economic impacts in the region.
What’s More?
Nordstrom has been making efforts to enhance customer experience through faster delivery. It remains focused on its long-term strategy, which builds on its market strategy to capitalize on its digital-first platform, gain market share and deliver profitable growth. For this, the company is focused on three areas, winning in important markets, expanding the reach of Nordstrom Rack and enhancing its digital capabilities.
Nordstrom is making efforts to drive efficiency and improve customer experience via faster order fulfillment. Also, increased focus on Nordstrom Rack bodes well. The company continues to focus on introducing more premium brands at Rack, better assortments and increased brand awareness. It has introduced five Rack stores in the reported quarter, bringing its year-to-date total to 11. Going ahead, it intends to roll out to more markets. Management expects to open 12 more Rack stores in 2024, before the holiday season.
Three Picks You Can’t Miss
We have highlighted three better-ranked stocks in the broader sector, namely Abercrombie & Fitch Co. ANF, Shoe Carnival SCVL and Burlington Stores BURL.
Abercrombie, a leading casual apparel retailer, currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANF’s current financial-year sales and earnings indicates growth of 13% and 63.4%, respectively, from the year-ago reported figures. Abercrombie has a trailing four-quarter earnings surprise of 27.9%, on average.
Shoe Carnival, one of the nation's largest family footwear retailers, offers a broad assortment of moderately priced dress, casual and athletic footwear for men, women and children. The stock currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for SCVL's current fiscal sales indicates a growth of 5.09% from the year-ago reported figure.
Burlington Stores is a nationally recognized off-price retailer of high-quality, branded apparel, footwear, accessories and merchandise for the home at everyday low prices. It currently carries a Zacks Rank #2. BURL has a trailing four-quarter earnings surprise of 18.4%, on average.
The Zacks Consensus Estimate for Burlington Stores’ current financial-year sales and earnings suggests growth of 10.1% and 30.5%, respectively, from the year-ago reported numbers.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
Nordstrom, Inc. (JWN) : Free Stock Analysis Report
Shoe Carnival, Inc. (SCVL) : Free Stock Analysis Report
Burlington Stores, Inc. (BURL) : Free Stock Analysis Report