Nordstrom and Aeropostale Announce Expansion
New York City Executives from Nordstrom and Aeropostale detailed their companies’ expansion plans during presentations Wednesday at the Piper Jaffray 28th Annual Consumer Conference in New York City.
Nordstrom said that it will open eight new stores this year and five in 2009. Michael Koppel, CFO, said he is confident that Nordstrom will gain market share with an improved product line and opening new stores.
"New stores are our best investment," said Koppel, adding that they generate long-term growth and excitement among shoppers in the community.
Also, Nordstrom has been revamping current locations. According to Koppel, the company has spent more than $120 million per year to remodel stores.
Nordstrom is helped, Koppel said, by the fact that the company's core demographic, typically between the ages of 25 and 54 and making over $100,000 in income, is growing faster than the broader market.
Also, demand for Nordstrom's core consumable items, such as cosmetics, has remained healthy.
During the Aeropostale presentation, CEO Julian Geiger said the chain, which operated 814 stores at the end of 2007, could grow to 1,000 during the next couple of years. About 85 stores are on tap for this year. Geigher also said the chain is developing a new retail concept.
Looking north, Aeropostale expects to grow its store count in Canada from its current 27 locations to about 100 eventually.
Geiger did not offer any details about Aeropostale’s new concept, which reportedly is in the children’s area. He did say that if the growth of the namesake format slows in the future, the new concept, along with the company’s Jimmy’Z format, will pick up the slack.