Retail earnings season has been a mix of hits and misses over the past few weeks, with industry giants like Walmart and Target beating sales expectations with help from aggressive discounts while Macy’s and others have posted tepid numbers and disappointing guidance. Embattled discount chain Dollar General saw its stock crater 30% on Friday after it lowered its sales outlook and indicated that its core customers were simply too strapped for cash to shop there.
On the flip side, one retailer that has flown under the radar this season is Nordstrom, the Seattle-based luxury department store chain, which recently blew past earnings estimates for its second quarter. The company reported diluted earnings per share of 96 cents, compared to expectations of 71 cents, according to a consensus estimate cited by CNBC.
While cost cutting has been a big part of Nordstrom’s recent success, the company is also growing its physical footprint with new store openings for Nordstrom Rack, its discount brand. Nordstrom said in its earnings report last week that it has already opened 11 Nordstrom Rack locations this year so far, with another 12 locations planned through the end of 2024.
The list includes seven locations in California, two in Texas, and numerous stores in the Southeast and Midwest. In total, Nordstrom said it had 269 Nordstrom Rack locations as of the beginning of last month, compared to only 247 a year earlier. The uptick is a bright spot in a year when many retail chains are scaling back their brick-and-mortar presence and in some cases seeking bankruptcy protection.
Not immune to retail challenges
In fact, Nordstrom itself has recently closed some high-profile locations, including a sprawling San Francisco store that shuttered last summer. According to Crain's New York Business, the company also planned to close its last Brooklyn-based Nordstrom Rack location in late August. A rep from Nordstrom confirmed the accuracy of that report.
Nordstrom Rack is an increasingly central point of focus for the retailer's bottom line. Last fall, it appointed executive Gemma Lionello to the newly created position of Nordstrom Rack president, where she is tasked with overseeing strategy for the discount offshoot and expanding its reach into new markets. Net sales for Nordstrom Rack increased 8.8% during the second quarter of 2024, compared to 3.4% for the company as a whole.
Nordstrom Rack stores already opened in 2024
- Pinole Vista Crossing: Pinole, California
- Presidential Markets: Snellville, Georgia
- Barrett Place: Kennesaw, Georgia
- Macedonia Gateway: Macedonia, Ohio
- Gilroy Crossing: Gilroy, California
- South Beach Regional: Jacksonville Beach, Florida
- Queen Creek Marketplace: Queen Creek, Arizona
- The Ridge Elk Grove: Elk Grove, California
- Danada Square East: Wheaton, Illinois
- Pacific Coast Plaza: Oceanside, California
- Gardiner Manor Mall: Bay Shore, New York
Nordstrom Rack openings planned for the remainder of 2024
- Bandera Pointe: San Antonio, Texas
- Cool Springs Market: Franklin, Tennessee
- Bridgepointe Shopping Center: San Mateo, California
- Clairemont Town Square: San Diego, California
- Mooresville Crossing: Mooresville, North Carolina
- Meyerland Plaza: Houston, Texas
- Deerfield Towne Center: Mason, Ohio
- Bell Tower: Fort Myers, Florida
- Triangle Town Place: Raleigh, North Carolina
- Hamilton Town Center: Noblesville, Indiana
- Village Pointe: Omaha, Nebraska
- Village Walk: Tarzana, California
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