Nordstrom, Inc. JWN has been committed to its store expansion endeavors to enrich shoppers’ experience. The company is likely to introduce a Nordstrom Rack in Nashua, NH, in spring of the next year.

This 30,000-square-feet store will be opened in Royal Ridge Center, which is a renowned shopping center including Marshalls, Sierra Trading Post, HomeGoods, PetSmart, The Paper Store, among others. Leased and managed by Wilder, the center is situated in the region's busiest retail hub commercial corridor of southern New Hampshire. Wilder is a retail real estate firm in Boston.

The new store will strengthen JWN's footprint in New Hampshire. The company looks forward to efficiently serving the Nashua community with its excellent services and products at convenient prices. Customers here can avail services like online order pick up from Nordstrom.com as well as NordstromRack.com, alongside easy returns. We expect the new location will attract customers, and hence bolster JWN’s sales and profits.

Rack Division: JWN’s Profitable Arm

Nordstrom remains quite focused on building momentum at Rack by increasing its strategic brand penetration, improving the Rack performance, increasing inventory productivity and progressing on its supply-chain optimization initiatives. The company’s Nordstrom Rack brand comprises NordstromRack.com, Nordstrom Rack U.S. stores and Last Chance clearance stores.

Nordstrom Rack, which is the company’s off-price division, targets value-conscious shoppers. This is an integral part of JWN’s Closer to You strategy, which looks to offer a great value and interconnected experience to customers. Its Rack banner has been doing well for a while. During third-quarter fiscal 2024, sales at the Nordstrom Rack banner advanced 10.6% year over year to $1.3 billion and comparable sales rose 3.9%. 

The Rack banner's digital channel is a differentiator to the off-price retail, allowing customers to shop whenever and however they want. The Rack banner is on track to increase productivity through its network by reducing transportation costs and delivery times and enhancing services including faster delivery. The company has been introducing more premium brands at Rack, better assortment and increased brand awareness. 

The company has been increasing its presence across regions via Nordstrom Rack openings. On Dec. 11, management announced plans to inaugurate a Rack store in Lubbock, TX, in fall 2025. The company will expand its foothold in the Lubbock market, thereby serving the community and consumers. 

Last month , JWN unveiled plans to open a Nordstrom Rack in Lakeland, FL, in fall 2025. Through this store, the company will be able to expand its foothold in the Tampa market by serving the Lakeland community. Apart from reinforcing JWN’s physical foothold and customer base, such stores are likely to capture extra sales and add to the overall profitability.

More on Nordstrom

The Seattle-based fashion retailer’s shares have gained 9.8% in the past six months compared with the industry’s 11.6% growth.

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This Zacks Rank #3 (Hold) company has been making progress on its customer-based strategy. It is focused on driving Nordstrom banner growth and optimizing operations and strength at Rack. The company has been expediting deliveries, expanding online offerings and adding cheaper merchandise at its Rack off-price stores.

Increased focus on distribution facilities and improved connectivity of physical and digital capabilities are driving the company’s performance. JWN continues seeking additional efficiencies in flow and improved productivity through inventory management initiatives.

Nordstrom remains focused on its long-term strategy, which builds on its market strategy to capitalize on its digital-first platform to better serve customers, gain market share and deliver profitable growth. For this, it is focused on winning in the most important markets, expanding the reach of Nordstrom Rack and enhancing its digital velocity.

Key Picks in Retail

We have highlighted three better-ranked stocks, namely Deckers DECK, Boot Barn BOOT and Abercombie ANF.

Deckers, a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 13.6% from the year-ago figure. DECK delivered an average earnings surprise of 41.1% in the trailing four quarters.

Boot Barn, a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories, currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 6.8%, on average. 

The Zacks Consensus Estimate for Boot Barn’s current financial-year sales indicates growth of 13.4% from the year-ago figure.

Abercrombie, a leading casual apparel retailer, currently carries a Zacks Rank of 2. ANF delivered an earnings surprise of 7.8% in the last reported quarter. 

The consensus estimate for Abercrombie’s current financial-year sales indicates growth of 14.9% from the year-ago figure.

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