Nordstrom's First Toronto Store Boosts Canadian Expansion

Nordstrom Inc. JWN has been persistently focusing on its store-expansion strategy as the opening of new stores is not only expected to attract customers but also boost the company’s top line via synergies across other channels. Apart from fortifying its domestic presence, Nordstrom has been keen on expanding in Canada, backed by the impressive response received from that country.

Notably, the company is well on track to achieve its target of opening six full-line stores in the country by the end of fiscal 2017. In this regard, Nordstrom opened its first full-line store in Toronto, on Sep 16, which was a one-off event that saw a Beauty Bash hosted right outside the store. This itself was a major attraction for customers.

Spanning over 22,000 square feet, the store is housed at CF Toronto Eaton Centre, which marked Nordstrom’s second global flagship location. Prior to this, the company operated an international flagship store at Pacific Centre in Vancouver, British Columbia that was introduced last fall.

Coming back to the newly opened store in Toronto, this three-storied outlet provides a wide assortment of merchandise from designers like Marchesa to renowned brands like Madewell, thus covering items from a lower to higher price point. Alongside, this store will offer special services like Concierge, Language Ambassadors, 'Personalize It' monogramming and engraving station, 24-Hour Express Service, UnionPay, JWN Private Shopping Suite, Shoe Shine, Two-Hour Delivery Service, Studio Services and three food offerings among others.

We think that these services and the strategic location of the new store are likely to draw traffic, and augment Nordstrom’s performance. While this marks the fourth out of the company’s six targeted Canadian stores, the remaining two outlets are also expected to open in Toronto – in Yorkdale Centre and CF Sherway Gardens, on Oct 21, 2016, and spring 2017, respectively.

Clearly, this Zacks Rank #1 (Strong Buy) company, with its solid brand image, amendments to the operating model for cost savings, and continuous store expansion, is well positioned to deliver on its long-term goals.

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Other Stocks to Consider

Other favorably ranked stocks in the same industry are The Children's Place, Inc. PLCE, Amercian Eagle Outfitters AEO and Urban Outfitters Inc. URBN, each with a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

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