Same- or comparable-store sales are a crucial metric for retailers, reflecting sales generated by a retail chain’s existing stores over a certain time period.
Founded in 1901, Nordstrom (JWN) currently operates 293 stores:
- 116 full-line stores in the US
- 2 full-line stores in Canada
- 167 off-price Nordstrom Rack stores
- 2 Jeffrey boutiques
- 1 clearance store
- 5 Trunk Club showrooms
4Q14 same-store sales
Nordstrom’s 4Q14 same-store sales grew by 4.7% compared to the same quarter a year ago. The off-price Nordstrom Rack stores continued to perform well, with same-store sales growth of 3.2%. Full-line same-store sales showed some improvement in the quarter and were up by 0.5%.
Meanwhile, Dillard’s (DDS), Macy’s (M), and Kohl’s (KSS) respectively registered same-store sales growth of 3%, 2%, and 3.7% in the fourth quarter. The SPDR S&P 500 ETF Trust (SPY) has 12.6% of its holdings invested in the consumer discretionary sector, which includes department stores like Nordstrom.
Full-year same-store sales
In fiscal 2014, Nordstrom registered same-store sales growth of 4%, exceeding its outlook of 3.4% thanks to a boost from growth in Nordstrom Rack store sales. In fiscal 2014, full-line comparable sales decreased by 0.5% compared to a decline of 2.1% in fiscal 2013. The full-line stores, which cater to high-end consumers, have shown weakness recently, as affluent customers are still not spending at the expected levels.
In fiscal 2014, the company opened its first international store in Calgary, Canada, and two full-line stores in Jacksonville, Florida, and Houston, Texas. The company also opened 27 Nordstrom Rack stores in the US.
In fiscal 2015, the company plans to open four full-line stores in the US. As well, Nordstrom will launch one more full-line store in Canada, in addition to the one that opened in Ottawa on February 6, 2015.
Also this fiscal, Nordstrom plans to open 27 more Nordstrom Rack stores in the US. This is in line with the company’s plan to open ~25 Rack stores annually between 2013 through 2016. The company expects to open six full-line stores in Canada by 2017.