Nordstrom keeps Las Vegas guessing on plans for local store

Phil Levine

Friday, May 19, 2000 | 11:12 a.m.

Where and when will upscale retailer Nordstrom establish its first Las Vegas store?

The company isn't saying, but that isn't stopping experts from speculating on the eve of the shopping mall industry's leading convention in Las Vegas -- a convention often marked by high-profile retail announcements.

Company Co-President Pete Nordstrom revealed his plans to set up shop in Las Vegas at last year's annual International Council of Shopping Centers conference.

Twelve months later, as the city prepares to welcome more than 30,000 retail professionals from around the world for this year's ICSC conference beginning Sunday, questions remain unanswered as to where the Seattle-based retailer will land.

Industry experts agree the most likely destination for Nordstrom would be the Strip's Fashion Show Mall.

"The most logical location for Nordstrom's to open would obviously be in the Fashion Show," said George Connor, senior retail broker with Colliers International of Las Vegas.

"That location would generate the highest revenue, and it's very well-situated on the Strip."

John Knott, managing director of broker CB Richard Ellis' Las Vegas office, concurs.

"I think Nordstrom's would certainly want to take a close look at the Fashion Show Mall," he said.

"It's a very well located property, and would provide them with a very strong mix of both local and tourist customers. I also think the foot traffic would be stronger at Spring Mountain (and Las Vegas Boulevard) than it would have been -- at least initially -- at the Mandalay site."

Nordstrom was to open in a planned 1.2 million-square-foot retail center between the Mandalay Bay and Luxor hotel-casinos.

But developer Westcor Partners of Phoenix pulled out of the project last year and Mandalay Resort Group, owner of the resorts, isn't commenting on its progress in establishing the mall.

Officials from Nordstrom Inc. remain tight-lipped about their future Las Vegas plans.

"We had a commitment with the previous developer (of the Mandalay retail) project, but that developer pulled out, so we don't have anything signed at the moment," said Nordstrom spokeswoman Paula Weigand.

"However, Las Vegas remains our top priority (location) for new stores. We've also had a lot of interest from that market. We believe a (Las Vegas) store would be well patronized by both tourists and locals."

The Fashion Show Mall is owned by Columbia, Md.-based developer the Rouse Company, which is also parent to the Howard Hughes Corp., developer of Summerlin and the largest developer in Las Vegas. Fashion Show is currently slated to undergo a $300 million expansion.

An official at the mall said there was "no information (about Nordstrom negotiations) at this time" and declined further comment.

However, Nordstrom has stores at various Rouse-owned malls nationwide.

In the fall, Nordstrom announced plans to open a 173,000-square-foot, two-level store as part of another Rouse-owned expansion project underway in Maryland at the Mall in Columbia.

Jacqueline Young, senior vice-president of real estate broker Lee & Associates, said Nordstrom has long recognized that the Fashion Show Mall would be an "excellent choice."

"We've heard that location was one they were always interested in, but for some reason had been unable to secure," she said.

"Rouse tried to convince them to open in their upcoming Summerlin mall, but Nordstrom wanted to be more centrally located to appeal to both locals and tourists."

Rouse's Las Vegas plans include construction of a 1 million-square-foot mall in Summerlin, east of the Beltway between Sahara Avenue and Charleston Boulevard.

Several anchor tenants, including Dillard's, Macy's, Robinsons-May, and Lord & Taylor have signed on for that project, which is set for completion in 2004.

Industry experts say Nordstrom's arrival on the Strip could help rather than hurt existing retailers.

"The Nordstrom's name has a certain mystique about it," Connor said. "Their arrival would likely benefit other retailers, as they would draw significant numbers of shoppers to the area."

Young said the lure of Fashion Show's high-end clients added to the mall's desirability for Nordstrom.

"With retailers such as Neiman-Marcus already there, Fashion Show attracts the right type of customer for Nordstrom's," she said. "And the mall's location makes it a good property for attracting both Strip and local shoppers."

Adds Knott: "Nordstrom has a particular niche (market) that would truly complement the existing retailers in that area."

The Fashion Show Mall's expansion coincides with increased attention focused on the hotel-casinos near the intersection of Spring Mountain Road and Las Vegas Boulevard.

"With the Venetian likely to soon begin construction on its phase two, as well the announced plans for rebuilding the Frontier, that area (of the Strip) looks very promising," said Connor. "Also, Steve Wynn's plans for rejuvenating the Desert Inn bode well for that part of the Strip."

Seven anchor tenants have already committed to be part of the expanded Fashion Show Mall. Upon completion of the expansion in 2003, the mall will feature a Saks Fifth Avenue, Lord & Taylor, Bloomingdale's, Dillard's, as well as an expanded Neiman-Marcus, Robinsons-May and Macy's.

Given those commitments, could Rouse find a way to accommodate Nordstrom if the retailer chooses to locate at Fashion Show?

"Where there's a will, there's a way," said Connor. "It could be behind the mall or by rejigging the space inside. If they want to find a way, they will.

"After all, this is Las Vegas."

Phil Levine is a business writer for the Sun. He can be reached at (702) 259-4068 or phil@lasvegassun.com