Nordstrom (JWN) Expands Store Base, Opens Outlet In New York

Nordstrom, Inc. (NYSE:JWN) unveiled that it has opened the first flagship store for women and children in New York City, further expanding its store base. In April 2018, the company had introduced a men’s store in New York City. The new flagship store occupies the base of Central Park Tower and is located at 225 West 57th Street. This store is situated diagonally opposite to the aforementioned men’s store.

The company has been persistently focusing on the store-expansion strategy as part of its efforts to grow market share. It remains keen on prioritizing its investments in the top North American markets. The opening of new stores is not only expected to attract customers but also boost the company’s top line via synergies across other channels.

Recently, the company also announced its plan to open first Nordstrom Rack store in Tacoma, Washington at Tacoma Mall. The store will be inaugurated in fall 2020 at the time of festive season.

Apart from these, the company’s significant progress on its customer-based strategy places it well to reach the revenue target of $20 billion by 2020. This strategy focuses on three factors — leveraging its brand strength, providing excellent services and offering compelling products to its customers.

Notably, Nordstrom is making amendments to its operating model in response to the constant slowdown in mall traffic resulting from customers’ shift to online shopping. It is focused on boosting e-commerce and digitization, enhancing supply-chain channels and improving marketing efforts. In second-quarter fiscal 2019, digital sales improved 4%, representing about 30% of sales growth.

Nordstrom remains on track to reach its target of EBIT margin of 6.3-6.5% by fiscal 2020. The company had earlier said that it expects to accomplish savings at the high end of $150-$200 million by fiscal 2019 associated with efficiency initiatives. We believe these efforts will help Nordstrom to deliver sustainable growth over the long term.



Notably, shares of this Zacks Rank #3 (Hold) company have increased 19% in the past three months against the industry’s decline of 13.5%.

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Nordstrom, Inc. (JWN): Free Stock Analysis Report

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Canada Goose Holdings Inc. (GOOS): Free Stock Analysis Report

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