expansion plans

Some of Nordstrom's growth could be a result of the recent merger of Federated Department Stores and May Department Stores. Federated executives say they will close 73 units as a result of the deal, and Nordstrom executives have expressed interest in some of those spaces, though they haven't specified how many.

Nordstrom, which also operates 49 Nordstrom Rack discount stores, could open more than 50 additional full-line units if the company's test of smaller-format locations succeeds, Koppell said. In 2007, Nordstrom executives plan to open its first smaller store, an 80,000-sf unit in Waterside Shops at Pelican Bay, a fashion center in Naples, FL.

Nordstrom plans five new department stores this year, three next year, five in 2007 and three in 2008. Two of those openings, at Natick (MA) Mall, outside of Boston, in 2007; and the following year at the Ala Moana Center, in Honolulu, represent new markets for the retailer.