Nordstrom Rack to Open New Location in Geneva, Illinois

Rhea-AI Summary

Nordstrom, Inc. announced plans to open a new Nordstrom Rack in Geneva, Illinois in spring 2025. The 25,000-square-foot store will be located in Randall Square, a popular shopping center. This expansion is part of Nordstrom's Closer to You strategy, offering customers up to 70 percent off on-trend apparel, accessories, beauty, home, and shoes. The company operates four Nordstrom stores and 17 Nordstrom Rack stores in Illinois, generating nearly 3,000 jobs statewide. Nordstrom is also committed to investing in the diverse communities where it operates, with significant donations to Big Brothers Big Sisters of the United States.

Insights

Market Research Analyst

The strategic expansion of Nordstrom Rack into Geneva, Illinois, is a calculated move aimed at bolstering Nordstrom's presence in a competitive retail landscape. By situating the new store in Randall Square, Nordstrom leverages the existing traffic and popularity of the shopping center, which includes several high-traffic retailers. This synergy is likely to increase footfall and brand visibility for Nordstrom Rack, enhancing its market penetration.

From a market research perspective, the choice of location is crucial. Randall Square's proximity to major roads makes it accessible, potentially drawing customers from a wider geographic area. The addition of Nordstrom Rack to this mix could create a halo effect, benefiting surrounding businesses and potentially increasing the shopping center's overall attractiveness. This move aligns with Nordstrom's 'Closer to You' strategy, aiming to offer a more integrated and convenient shopping experience, both in-store and online.

Considering the economic impact, the new store is expected to contribute to job creation in Illinois, where Nordstrom already has a significant presence. This expansion could further cement the company's commitment to the region and may lead to increased consumer loyalty and brand strength.

Retail Industry Analyst

Nordstrom Rack's off-price retail model is a critical component of Nordstrom's overall business strategy, attracting price-conscious consumers with discounts on premium brands. The off-price sector has been resilient, even in economic downturns, as consumers look for value in their purchases. Nordstrom Rack's ability to offer substantial discounts while maintaining a connection to the Nordstrom brand allows the company to tap into a broad customer base, including aspirational shoppers and bargain hunters.

The new store's services, such as online order pickup and easy returns, reflect an evolving retail environment where convenience and omnichannel shopping experiences are becoming increasingly important. By integrating these services, Nordstrom Rack is not only catering to current consumer expectations but also building a foundation for future growth in e-commerce.

Furthermore, Nordstrom Rack's role as the largest source of new customers to Nordstrom highlights the strategic importance of this expansion. It serves as a gateway for introducing new clientele to the Nordstrom brand, potentially leading to cross-selling opportunities and higher lifetime customer value.

Corporate Social Responsibility Expert

Nordstrom's commitment to community investment, as evidenced by its partnership with Big Brothers Big Sisters of the United States, is an integral part of its corporate social responsibility (CSR) initiatives. By aligning its business expansion with philanthropic efforts, Nordstrom enhances its corporate image and fosters goodwill among consumers. The nearly $2 million in donations over four years not only supports the company's CSR narrative but also resonates with socially conscious consumers who may prefer to patronize businesses that contribute to social causes.

This aspect of Nordstrom's strategy can have a positive impact on brand loyalty and customer retention. Consumers are increasingly looking to support companies that demonstrate a commitment to making a positive social impact. Nordstrom's emphasis on CSR could therefore be a differentiating factor in a crowded retail market, potentially driving more traffic to its stores and improving its competitive positioning.

SEATTLE, Feb. 6, 2024 /PRNewswire/ -- Seattle-based fashion retailer Nordstrom, Inc. (NYSE: JWN) announced plans to open a new Nordstrom Rack in Geneva, Illinois in spring 2025.

"We look forward to being a part of the Geneva community and serving our customers with an amazing offering of great brands at great prices," said Gemma Lionello, President of Nordstrom Rack Stores. "We're excited to grow our footprint in the region and introduce new customers to the Nordstrom experience."  

Lionello added that in this location "customers will be able to take advantage of our convenient services such as online order pick up from both Nordstrom.com and NordstromRack.com, and they can make returns easily."

The 25,000-square-foot store will be located in Randall Square, a popular shopping center that includes Marshall's, Ulta, Old Navy, PetSmart and Michael's. Randall Square is owned and managed by Viking Partners and is ideally located off of Randall Road and Fabyan Parkway.

"We were elated at the opportunity to add Nordstrom Rack to the retail mix following our recent acquisition of Randall Square. Nordstrom's presence will add loads of value for patrons of the already dynamic and diverse destination shopping center," said Jeff Sluzala, Director of Asset Management, Viking Partners.

Nordstrom Rack is the off-price retail division of Nordstrom, Inc. and plays a critical role in the company's Closer to You strategy, which focuses on delivering customers a more convenient and interconnected experience across its stores and digital platforms. Nordstrom Rack offers customers up to 70 percent off on-trend apparel, accessories, beauty, home and shoes from many of the top brands sold at Nordstrom stores as well as core services like online order pickup for Nordstrom.com and NordstromRack.com, easy returns and alterations at select stores. Nordstrom Rack is the largest source of new customers to Nordstrom.

With the addition of this new location, Nordstrom expands its physical footprint and economic impact in Illinois. The company operates four Nordstrom stores and 17 Nordstrom Rack stores in Illinois, generating nearly 3,000 jobs statewide.

Nordstrom is committed to investing in the diverse communities where it operates. Over the past four years, Nordstrom, with its customers, has donated nearly $2 million in support of its long-term partnership with Big Brothers Big Sisters of the United States. These proceeds support the recruitment, training and engagement of adult mentors and mentorship moments between Bigs and Littles, including preparing for an interview, learning to tie a tie and helping with homework. 

About Viking Partners

Viking Partners is a vertically integrated commercial real estate platform focused on the acquisition, improvement, and management of value-add and core-plus real estate. Founded in 2008, Viking has acquired assets in excess of $1.4 billion representing more than 10 million square feet of retail, office, industrial/flex, multifamily, development and more. Viking currently owns and operates a portfolio of direct ownership and limited partner investments in value-add, core-plus, and development projects primarily located throughout the Midwest, Southeast, Southwest, and Mountain West. Viking is actively seeking investments for our Value-Add Fund V and Income Plus Fund I. For more information, visit https://www.vikingprt.com/.

About Nordstrom
At Nordstrom, Inc. (NYSE: JWN), we exist to help our customers feel good and look their best. Since starting as a shoe store in 1901, how to best serve customers has been at the center of every decision we make. This heritage of service is the foundation we're building on as we provide convenience and true connection for our customers. Our digital-first platform enables us to serve customers when, where and how they want to shop – whether that's in-store at more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations or digitally through our Nordstrom and Nordstrom Rack apps and websites. Through it all, we remain committed to leaving the world better than we found it.

MEDIA CONTACT: 
Sepeedeh Hashemian
Nordstrom, Inc.
NordstromPR@Nordstrom.com 

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SOURCE Nordstrom, Inc.

FAQ

When will Nordstrom open a new Nordstrom Rack in Geneva, Illinois?

Nordstrom plans to open the new Nordstrom Rack in Geneva, Illinois in spring 2025.

Where will the new Nordstrom Rack be located?

The 25,000-square-foot store will be located in Randall Square, a popular shopping center in Geneva, Illinois.

What is Nordstrom's Closer to You strategy?

Nordstrom's Closer to You strategy focuses on delivering customers a more convenient and interconnected experience across its stores and digital platforms.

How many Nordstrom stores and Nordstrom Rack stores are currently operating in Illinois?

Nordstrom operates four Nordstrom stores and 17 Nordstrom Rack stores in Illinois.

What is Nordstrom's commitment to investing in diverse communities?

Nordstrom has donated nearly $2 million in support of its long-term partnership with Big Brothers Big Sisters of the United States, supporting mentorship programs and engagement of adult mentors and mentees.