Nordstrom to open philanthropic concept store in Manhattan

Nearly six months after opening an off-price Rack store in Lower Manhattan, Seattle-based Nordstrom says it now plans to introduce a new philanthropic-based concept store in New York City's Soho district.

The store, which will donate its profits to charity, is to open in fall 2011 at the base of a new 10-story residential building on West Broadway.

At 11,100 square feet, it's roughly a third the size of Nordstrom's Rack store at Union Square and less than a tenth the size of a typical full-line Nordstrom store.

The new store is so different, in fact, that it will carry another, yet-to-be-determined name, said corporate spokeswoman Pamela Lopez.

"Our intention is not to create a mini-Nordstrom," she said. "There will be no Nordstrom signage and no Nordstrom shopping bags. Really, the store will have an identity all its own. It's a chance for us to do something completely new."

Landlord RFR Realty broke the news to New York media Wednesday, saying it had signed Nordstrom to a lease for two floors of retail space at 350 West Broadway. RFR describes the property as a "condominium building with six seductive full-floor residences and one duplex penthouse with a large terrace."

Lopez said Nordstrom still is working on many of the details, such as the store's merchandise strategy and which nonprofits will receive donations.

"It's unique to New York, meaning it's a one-off concept and not something we're going to try in other cities," Lopez said.

For years, Nordstrom has been looking for a suitable location to open a full-line clothing store in Manhattan. It nearly reached a deal several years ago for a large chunk of space at the former Drake Hotel on Park Avenue, but would-be developer Harry Macklowe ran into financial problems.

Nordstrom recently was rumored to be looking at 3 Columbus Circle, which is owned by financially troubled developer Joe Moinian, according to Crain's New York Business. After buying the property's $250 million mortgage, a venture of developer Related Cos. planned to rebuild, with a Nordstrom flagship on the ground floor, Crain's reported.

But those plans fell through when a third entity announced it will help Moinian pay off the mortgage, making a Nordstrom deal unlikely, Crain's said.

"We have aspirations to open a full-line Nordstrom store in Manhattan," Lopez said. "Anything we can learn about doing business in Manhattan is valuable to us."

If nothing else, Nordstrom's new concept store could help it learn about affluent New York City shoppers before investing in a large, expensive flagship, said Ken Stumphauzer, an analyst following the company for Sterne Agee.

"The Rack gives you an idea of the magnitude of traffic in New York and the logistics of replenishing inventory, but I'd imagine it's a much different customer who walks into a Rack than would be walking into a Nordstrom in New York," Stumphauzer said. "Not far from where the new concept store is going, you have Chanel, Prada and all the high-end luxury brands."

He added, "You can rationalize it from a market-research standpoint."

Shares of Nordstrom stock Thursday gained 47 cents to close at $38.73, in the midrange of its trading during the past year.

Amy Martinez: 206-464-2923 or amartinez@seattletimes.com