Nordstrom committed to store on LV Strip

Wednesday, Jan. 17, 2001 | 11:01 a.m.

Despite lackluster holiday sales, an announcement that earnings would not hit projections and cancellations of projects elsewhere, Nordstrom Inc. says it still plans to go ahead with plans to build a 180,000-square-foot Las Vegas store on the Strip.

A spokeswoman for the company said construction is scheduled to begin this summer and a late 2002 opening is still projected.

"The Las Vegas store is on track," said spokeswoman Paula Weigand. "I can confirm that it is still on our calendar."

Seattle-based Nordstrom, once a Wall Street darling, has been troubled by lackluster performance in late 2000 and announced that it was scrapping plans for two stores in Cincinnati and another in Pittsburgh.

Forbes.com reported this month that company President Blake Nordstrom warned last month that unless the company staged a turnaround, it could be sold.

Last week, the company cut its earnings forecast, citing a 2.9 percent decline in same-store sales in December. Store officials said earnings per share would be between 18 cents and 23 cents for the company's fourth quarter. Analysts had projected earnings per share of 38 cents.

The company also had a management shake-up in the fall, but some of the new executives' initiatives haven't been well received.

"The new management has taken on a complete review of all company initiatives," Weigand said. "Some changes were made to the real estate calendar with a less aggressive expansion. We postponed some projects."

But plans to put a store in Las Vegas' Fashion Show mall on the Strip are still on. Fashion Show is doubling its square footage and is adding and revamping anchor stores. When the project is completed in 2003, it will include new stores for Dillard's, Bloomingdale's and Lord & Taylor and remodellings for Macy's, Saks Fifth Avenue, Neiman-Marcus, Robinsons-May, in addition to Nevada's first Nordstrom department store.

The Fashion Show is being developed by the Rouse Co., Columbia, Md., the parent company of the Howard Hughes Corp.

The 100-year-old Nordstrom suffered the same holiday blahs as other big retailers -- Wal-Mart, Target, Gap and Federated Department Stores among them. Even retail heavyweight Montgomery Ward announced it is closing.

But analysts say there are more problems than just disappointing holiday sales for Nordstrom. In an effort to reinvent itself to woo a more trend-conscious crowd, the company alienated loyal customers who shop Nordstrom because of its attention to service, analysts say.