Nordstrom Relocates in Honolulu - Analyst Blog
27 September 2012 - 10:15PM
Zacks
Nordstrom Inc. (JWN), a leading Seattle-based
fashion specialty retailer, has decided to move to a larger space
within the Ward Centers in Honolulu. The company will move from the
current 34,000 square feet Nordstrom Rack store at Ward Center to a
two-level 45,000 square feet store in Phase Two of Ward Village
Shops within Ward Centers.
The Ward Village Shops development is intended to bring new life to
the Ward Center, which is located in the heart of the Kaka'ako
district and close to Waikiki. The new Nordstrom Rack store will
face the Auahi Street, connecting to the seventh level parking
deck, which houses over 700 stalls. Dallas, Texas-based The
Howard Hughes Corporation (HHC) is the owner of the Ward
Center in Honolulu.
Nordstrom first stepped into Honolulu in 1966 by opening shoe
departments in Liberty House locations all over the island.
Currently, the company has a full-line store, covering an area of
200,000 square feet, at Ala Moana Center, near its current Rack
store location.
Nordstrom Rack stores generally offer merchandises that are in
vogue from Nordstrom stores and Nordstrom.com at a significantly
reduced price to customers. Products at these stores are sold at a
discount of roughly 50% to 60% from the original Nordstrom tags.
Nordstrom Rack also carries a vast assortment of branded apparel,
accessories and shoes that are available at Nordstrom stores, and
are offered to customers at a discount of about 30% to 70%.
Nordstrom’s latest store openings signify the company’s commitment
to expand its store network with the aim of driving top-line
growth. As of September 25, 2012, Nordstrom operated 117 Nordstrom
full-line stores, 113 Nordstrom Rack, 2 Jeffrey boutiques, 1
treasure&bond store and 1 clearance store, thus bringing the
total store count to 234.
Moreover, the company has targeted to open 16 new stores in fiscal
2012 consisting of 1 full-line store and 15 Nordstrom Rack Stores.
The company has also planned to add 24 new Rack stores in fiscal
2013 and intends to operate 230 Rack stores by the end of 2016.
Amidst these positive factors, Nordstrom faces intense competition
from other well-established players in the specialty retail sector
such as The Gap Inc. (GPS), Limited Brands
Inc. (LTD) and Abercrombie & Fitch
Co. (ANF). Competitive pressure within the retail space
may force the company to reduce its sales price, bringing down its
margins.
Nordstrom currently maintains a Zacks #3 Rank, which translates
into a short-term Neutral rating. However, our long-term
recommendation on the stock remains Neutral.
ABERCROMBIE (ANF): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
(HHC): ETF Research Reports
NORDSTROM INC (JWN): Free Stock Analysis Report
LIMITED BRANDS (LTD): Free Stock Analysis Report
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