Nordstrom Inc. JWN plans to shut down its store at MainPlace Mall in Santa Ana, CA. After enjoying nearly 29 years of patronage from the customers at MainPlace Mall, since 1987, this store will cease to operate starting Mar 17, 2017.
Nordstrom stated that south California has been one of its strongest markets, and the company remains focused on growing in this region, and seamlessly serve customers with better merchandise range. While operating in MainPlace Mall has been a good experience for Nordstrom, management believes that it can cater to customers better and for a longer period, by operating in other nearby regions.
Incidentally, the company is on track to open new stores in Century City and La Jolla this year, and is also set to launch its finest remodeled store at South Coast Plaza. Additionally, Nordstrom highlighted that its Orange County patrons can continue shopping at the company’s six locations in the region, including Nordstrom South Coast Plaza; Nordstrom Fashion Island; Nordstrom Irvine Spectrum Center; Nordstrom Brea Mall; Nordstrom Los Cerritos Center; and Nordstrom The Shops at Mission Viejo.
Moreover, customers can shop at Nordstrom’s 12 Rack stores in the region, alongside having the option of making online purchases at Nordstrom.com.
The store closure is expected to affect nearly 195 non-seasonal employees. Nordstrom indicated that it will try to absorb the employees willing to stay with the company at its close by Nordstrom and Nordstrom Rack stores. Others, who fail to find a role in these stores, will be offered a severance package. This highlights Nordstrom’s commitment not only to its customers, but to its employees as well.
The company has long been focused on store expansion. The opening of new stores is not only anticipated to attract customers, but also boost the company’s top line via synergies across other channels. This was confirmed when Nordstrom’s recently opened Canadian stores led to increased online sales in those regions. The company’s strategic investments should help it to sustain profitable growth over the long term. Also, its solid brand image and consistent store expansion ventures remain driving factors.
Backed by these growth endeavors, Nordstrom's shares have jumped nearly 10.2% in the last six months, crushing the Zacks categorized Retail – Apparel and Shoes industry's decline of 3.9%.
Through its globally recognized brands, Nordstrom caters primarily to the upscale segment, enabling it to generate high margin revenue. The company also appeals to its consumers by offering a more inclusive selection of quality merchandise, which further distinguishes it from other mall-based department store retailers.
The company currently offers a broad selection of over 500 brands, targeted toward the entire family, through a strong nationwide network of over 340 stores situated across 40 states, including 123 full-line stores in the U.S, Canada and Puerto Rico; 215 Nordstrom Rack stores; two Jeffrey boutiques; and two clearance stores.
Zacks Rank & Key Picks
Nordstrom currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the same industry include The Children's Place, Inc. PLCE, Christopher & Banks Corporation CBK and Tilly's, Inc. TLYS, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Children's Place has an average positive earnings surprise of 36.3% for the trailing four quarters. The stock, with a long-term growth rate of 10.3%, has seen positive estimate revisions in the last seven days.
Christopher & Banks, with long-term earnings per share (EPS) growth rate of 15%, recorded positive estimate revisions for the current fiscal over the past 30 days.
Tilly's long-term EPS growth rate of 13% and solid positive estimate revisions for the current fiscal over the last 30 days help it stand strong in the industry. Moreover, the company has delivered earnings beat consecutively, in the last three quarters.
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