Nordstrom Rack to Open New Location in Omaha, Nebraska

Rhea-AI Summary

Nordstrom, Inc. (NYSE: JWN) to Open New Nordstrom Rack in Omaha, Nebraska

Positive

• Expansion into a new market in Nebraska enhances the company's growth prospects
• The 30,000-square-foot store in Village Pointe will offer convenient services such as online order pick up and easy returns
• Nordstrom Rack's off-price retail division provides customers up to 70 percent off on-trend apparel, accessories, beauty, home, and shoes from top brands

Negative

• None.

Insights

Retail Industry Analyst

Expanding into a new market, as seen with Nordstrom's announcement of a Nordstrom Rack in Omaha, Nebraska, is a strategic move that can potentially increase market share and revenue. The choice of location within a popular shopping center, Village Pointe, suggests a deliberate effort to tap into an existing flow of consumer traffic. By positioning itself among other well-known retailers, Nordstrom may benefit from cross-shopping behaviors, where consumers visit multiple stores in one trip.

The launch of this store aligns with Nordstrom's 'Closer to You' strategy, emphasizing the integration of physical and digital retail experiences. Offering services like online order pickup and easy returns is indicative of the evolving retail landscape where convenience is paramount. These services are likely to enhance customer satisfaction and loyalty, which can translate into repeat business and positive word-of-mouth.

Moreover, the store's introduction to a new geographic market could serve as a gateway to attracting new customers to the Nordstrom brand. Given that Nordstrom Rack is the largest source of new customers for the company, this expansion could significantly contribute to customer base growth. The impact on the stock market may be positive if investors perceive this move as a sign of robust growth strategy and effective market penetration.

Financial Analyst

From a financial perspective, the opening of a new Nordstrom Rack store is a capital-intensive venture that will incur upfront costs related to construction, staffing and inventory. However, the long-term benefits could offset these initial investments through increased sales and customer acquisition. Investors should monitor the performance of this new store as an indicator of Nordstrom's ability to execute expansion strategies and generate returns on investment.

It is also essential to consider the competitive landscape. While the introduction of Nordstrom Rack may attract new customers, it also has the potential to cannibalize sales from nearby retailers. The balance between attracting new market segments while not adversely impacting existing sales will be crucial for Nordstrom's overall financial health.

Lastly, Nordstrom's commitment to community investment, as evidenced by its partnership with Big Brothers Big Sisters of the United States, may resonate with socially conscious consumers and investors. Such corporate social responsibility initiatives can enhance brand reputation and customer loyalty, potentially leading to stronger financial performance in the long run.

SEATTLE, Dec. 19, 2023 /PRNewswire/ -- Seattle-based fashion retailer Nordstrom, Inc. (NYSE: JWN) announced plans to open a new Nordstrom Rack in Omaha, Nebraska. The store is scheduled to open in fall 2024 and will be the company's first store of any kind in Nebraska.

"We look forward to being a part of the Omaha 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 30,000-square-foot store will be located in Village Pointe, a popular shopping center that includes Best Buy, Scheels, lululemon, DSW and more. Village Pointe is owned and managed by RED Development and is ideally located off of 168th Street and West Dodge Road.

"We are constantly striving to continue to provide a thriving and dynamic shopping, dining and entertainment experience for our shoppers," said Alicia Peters, General Manager of Village Pointe. "The addition of Nebraska's first Nordstrom Rack to our lineup of diverse tenants will provide locals and travelers with unparalleled access to premium brands and quality products at exceptional value -- reinforcing our commitment to offering a comprehensive shopping destination for style-conscious shoppers."

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.

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 RED Development
For more than 25 years, RED Development has been an industry-leading, wholly integrated commercial real estate company known for its high-performing mixed-use and retail portfolio. A preferred partner for best-in-class retailers and investors, RED is known nationally for its vibrant, well-trafficked ground-up developments along with its keen expertise for remerchandising and repositioning existing properties to improve profitability and appeal. Headquartered in Phoenix, the privately held company's portfolio is comprised of distinctive destinations across the Southwest and Midwest. For more information, visit REDdevelopment.com.

About Village Pointe
Village Pointe is a 571,616 square-foot, open-air lifestyle center in Omaha, Nebraska. Anchored by a Best Buy and Scheels, the upscale, prairie-style shopping center offers unique shopping, entertainment and dining, with more than 60 local and national retailers and restaurants. The property regularly hosts community events and features various entertainment options, including The Funny Bone Comedy Club and Marcus Village Pointe Cinema featuring DreamLoungers in every theatre. For additional information, visit REDdevelopment.com/village-pointe/.

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: 
Lauren Herrin
Nordstrom, Inc.
NordstromPR@Nordstrom.com 

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SOURCE Nordstrom, Inc.

FAQ

When is Nordstrom, Inc. (NYSE: JWN) opening a new Nordstrom Rack store?

Nordstrom, Inc. (NYSE: JWN) plans to open a new Nordstrom Rack in Omaha, Nebraska in fall 2024.

Where will the new Nordstrom Rack store be located?

The 30,000-square-foot store will be located in Village Pointe, a popular shopping center in Omaha, Nebraska.

What services will the new Nordstrom Rack store offer?

The store will offer convenient services such as online order pick up from both Nordstrom.com and NordstromRack.com, and easy returns.

What is Nordstrom Rack's role in Nordstrom, Inc.'s strategy?

Nordstrom Rack plays a critical role in the company's Closer to You strategy, focusing on delivering customers a more convenient and interconnected experience across its stores and digital platforms.

What has Nordstrom, Inc. (NYSE: JWN) donated to support its partnership with Big Brothers Big Sisters of the United States?

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.