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JWN's Expansion Strategy on Track: New Rack Store Opening in Texas

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The Seattle-based fashion retailer, Nordstrom, Inc. (JWN - Free Report) , is set to open a Nordstrom Rack store in Lubbock, TX, in fall 2025. The upcoming 30,000-square-foot store will be located in West End Center, a prominent retail destination, featuring major retailers, such as Costco, Nike Factory Outlet, Bass Pro Shops, World Market, Marshalls HomeGoods and many others.

The new Rack store is expected to serve the Lubbock market, attracting customers through its wide range of high-quality brands at affordable prices. The evolution of Nordstrom Rack in Lubbock will bring exciting fashion options to meet the evolving demands of the community. The West End Center at Lubbock is owned and managed by GRACO Real Estate Development.

The Lubbock Nordstrom Rack store will offer convenient services to create a seamless shopping experience. Customers can also shop online via Nordstrom.com and NordstromRack.com, with the option to pick up their purchases in-store. The store will offer easy return processes, ensuring hassle-free returns. These services are designed to integrate online and in-store experiences, providing shoppers with greater flexibility and convenience.

Nordstrom stock, which currently carries a Zacks Rank #2 (Buy), has risen 8.7% in the past six months compared to the industry’s growth of 9.8%.

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What Makes Nordstrom Rack Unique?

Nordstrom Rack is the off-price retail division of Nordstrom and plays a critical role in the company's Closer to You strategy. This strategy focuses on delivering customers a more convenient and interconnected experience across stores and digital platforms. Nordstrom Rack offers customers up to 70% off on trending apparel, accessories, beauty products, home decor and shoes from many top brands sold at Nordstrom stores.

Nordstrom Rack stores are designed to attract a diverse customer base, offering them high-quality, fashionable items at significant discounts. By providing a wide array of products from leading brands, Nordstrom Rack aims to cater to the needs of budget-conscious shoppers without compromising on style or quality.

The expansion into Texas demonstrates Nordstrom's commitment to growing its presence in key markets and contributing to local economies. This new store is expected to create job opportunities and stimulate economic activity in the surrounding areas. Currently, Nordstrom operates eight Nordstrom stores and 23 Nordstrom Rack stores across Texas, contributing to the state's economy by generating more than 3700 jobs. This expansion highlights JWN’s commitment to increasing its physical footprint and economic impacts in the region.

What’s More?

Nordstrom has been making efforts to enhance customer experience through faster delivery. It remains focused on its long-term strategy, which builds on its market strategy to capitalize on its digital-first platform, gain market share and deliver profitable growth. For this, the company is focused on three areas: winning in important markets, expanding the reach of Nordstrom Rack and enhancing its digital capabilities.

Nordstrom is making efforts to drive efficiency and improve customer experience via faster order fulfillment. Also, increased focus on Nordstrom Rack bodes well. The company continues to focus on introducing more premium brands at Rack, better assortments and increased brand awareness.

Three Picks You Can’t Miss

We have highlighted three better-ranked stocks in the broader sector, namely Deckers (DECK - Free Report) , The Gap, Inc. (GAP - Free Report) and Abercrombie & Fitch Co. (ANF - Free Report) .

Deckers, a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). DECK delivered an average earnings surprise of 41.1% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 13.6% and 12.8%, respectively, from the year-ago reported figures.

Gap, which operates as an apparel retail company that offers apparel, accessories and personal care products for men, women and children, currently flaunting a Zacks Rank #1.

The Zacks Consensus Estimate for The Gap’s current fiscal-year sales and earnings indicates growth of 0.8% and 41.3%, respectively, from the year-ago quarter’s reported numbers. GAP has a trailing four-quarter average earnings surprise of 101.2%.

Abercrombie, a leading casual apparel retailer, currently carries a Zacks Rank of 2 (Buy). Abercrombie has a trailing four-quarter earnings surprise of 14.8%, on average.

The Zacks Consensus Estimate for ANF’s current financial-year sales and earnings indicates growth of 14.9% and 67.8%, respectively, from the year-ago reported figures.


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