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Nordstrom (JWN) Plans to Introduce a Rack Store in New Jersey

Nordstrom, Inc. JWN has been making efforts to drive efficiency and improve customer experience via faster order fulfillment. In addition, its focus on Nordstrom Rack bodes well. The company has been making improvements in the Nordstrom Rack banner, driven by strategic brand penetration increases.

In recent developments, management unveiled plans to open a Nordstrom Rack in Manalapan Township, NJ in spring 2025. With a span of 26,000 square feet, this store will be situated in Manalapan Commons, a renowned shopping center, which includes Best Buy, Panera Bread, Five Below, PetSmart, and Raymour & Flanigan. The shopping center, which is owned and managed by Urban Edge Properties, is located off Route 9 and Craig Road.

Here, shoppers can avail expedient services like online order pick up from Nordstrom.com and NordstromRack.com, coupled with easy returns. The planned opening of the Nordstrom Rack store is a testament to Nordstrom’s commitment to expanding its retail footprint in New Jersey.

The Rack banner remains on track to increase productivity throughout the network, reduce transportation costs and delivery times, and enhance services via faster delivery. The company continues focusing on introducing more premium brands at Rack, better assortment and increased brand awareness.

We note that the company has opened 11 Rack stores in the third quarter of fiscal 2023 and one early in the final quarter, bringing the total to 19 stores. Going ahead, it intends to roll out to more markets.

Nordstrom, Inc. Price and Consensus

Nordstrom, Inc. price-consensus-chart | Nordstrom, Inc. Quote

What’s More?

Nordstrom has been making efforts to enhance customer experience through faster delivery. The supply-chain optimization work began in early 2022 and has delivered significant customer benefits and operational efficiencies. Going ahead, JWN continues to seek additional efficiencies in flow and improved productivity through inventory-management initiatives.

In addition, 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, the company is focused on three areas, winning in important markets, expanding the reach of Nordstrom Rack and enhancing its digital capabilities.

Moreover, it remains focused on the closer-to-you strategy, which aims to link stores and services to expedite deliveries, expand online offerings and add cheaper merchandise at its Rack off-price stores. Increased focus on distribution capabilities along with improved connectivity of physical and digital inventory are likely to contribute to Nordstrom Rack sales by roughly $2 billion in the long term. Over the past three months, shares of this current Zacks Rank #3 (Hold) have gained 2.7% against the industry's break even.

Eye These Solid Picks

We have highlighted three better-ranked stocks, namely Gap GPS, American Eagle AEO and Hibbett HIBB.

Gap, a fashion retailer of apparel and accessories, currently sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 137.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Gap’s current financial-year earnings per share suggests growth of 385%, from the year-ago reported figure.

American Eagle, a leading apparel retailer, currently sports a Zacks Rank of 1. AEO delivered an earnings surprise of 23% in the trailing four quarters.

The Zacks Consensus Estimate for American Eagle’s current financial-year sales suggests growth of 5% from the year-ago reported figure.

Hibbett, the key sporting goods retailer, currently carries a Zacks Rank #2 (Buy). HIBB delivered an earnings surprise of 24.2% in the trailing four quarters.

The Zacks Consensus Estimate for Hibbett’s current financial-year sales suggests growth of 1.7% from the year-ago reported figure.

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