Nordstrom, Inc. (NYSE:JWN) Q3 2022 Earnings Call Transcript

Erik Nordstrom: Hi, Dana, it’s Erik. We started now, I think, some more Rack openings. As we’ve mentioned before, we think there’s opportunity for new stores in the Rack banner. Our Rack stores are profitable and the IRR opportunities are really compelling. And I meant, for the off-price space, convenience store locations is even more important than in the Nordstrom banner space. We know you get outside of about a 20-minute drive to Rack store, we start to lose customers. And you’ve seen a lot of the leading off-price players had a lot of store count over the last handful of years, and has helped drive their growth. And one of the things we know is, when we share a location, we share a parking lot with other off-price competitors in the vast, vast majority of cases, we have the highest sales per square foot.

So when we share a parking lot, more often than not, customers choose us. So given our store count compared to what else is out there, some competitors, we think there’s a lot of attractive opportunities to add some stores.

Dana Telsey: Thank you.

Heather Hollander: We want to thank you for joining today’s call. A replay, along with the slide presentation and prepared remarks, will be available for one year on our website. Thank you for your interest in Nordstrom.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.