Gordmans Department Stores On The Grow in Roseville, The Nation

When Gordmans recently debuted its new Roseville location, the Omaha-based retailer reaffirmed it is in expansion mode-and that the department store model is far from dead. 

"We are so focused on providing great service and at great values, that we will succeed no matter what is the macro-economic environment," company CEO Jeff Gordman contended. His comments came after he and local dignitaries held a ribbon-cutting ceremony last month to officially mark the opening of Gordmans' 65,000 square-foot store at the Crossroads of Roseville shopping center, 1663 County Road B2 West.

The Roseville location is the 75th U.S. store for Gordmans. With eight other store openings slated this year, Gordmans expects to end 2012 with 83 stores, a hefty increase from the 68 stores it had at the end of 2010.

Besides Roseville, Gordmans plans to open stores this year in Salt Lake City, Boise, Denver and Indianapolis.

In an interview with Roseville Patch, Jeff Gordman said the company's typical new store costs $4 million to build. But the company's costs for its Roseville location were about $2.8 million to $2.9 million because it renovated existing space that once was home to a movie theater and indoor recreation park, he said.

Gordmans, a niche department store operator touting apparel and home decor goods at bargain prices, is funding its growth from internally-generated cash flow. That's been aided by the company raising money from an intiai public offering in 2010.

At a time when many retailers have struggled, particularly department stores; Gordmans has also enjoyed strong sales. Same-store sales, or sales at stores open at least one year, rose 4.5 percent in 2009 and 8.5 percent in 2010. Same-store sales are considered a key measure of a retailer's financial health.

Gordman credits his company's strong sales to not just great variety of fashion-oriented merchandise at value prices but to an energized workforce that is dedicated to giving customers top-notch service.

"The sales associates are very enthusiastic and passionate about delighting our guests (customers)," Gordman said.

Gordman said his company seeks to be different than its competition, offering, for example, bigger junior departments than some rivals and carrying some items, such as accent furniture, not found in other stores.

"We have a good healthy respect for the competition," he said. "We don't try to out Penney Penney's or out Kohl's Kohl's."

In 2011, Gordmans same-store sales rose only about seven-tenths of 1 percent. But Gordman noted that smaller increase came after going up against 2010's very strong results. 

Gordman is forecasting a slight rebound for the first quarter of 2012 with a low-single digit comparable store sales increase, the company said in its 2011 fourth-quarter earnings report released last month.

Although it went public in 2010, Gordmans has its roots as a family-owned business. Gordman said his great-grandfather founded the company in 1915 and he is the fourth generation in his family to be associated with the business.

Gordmans stores are located primarily Midwestern states situated in a variety of shopping center developments, including regional enclosed shopping malls, lifestyle centers and power centers.  

Twin Cities retail academic Dave Brennan recently told Roseville Patch that arrival of Gordmans into the metro area is part of more value-oriented merchants coming into our market.

"This (Gordmans) is a companion to Kohl's and it's a pretty good fit," said Brennan, co-director of the Institute for Retailing Excellence at the University of St. Thomas in St. Paul. "Once you get this size and cluster of valued-oriented retail, it makes the (Crossroads) center all that stronger."

Brennan added that the Crossroads mall, just north of the regional Rosedale Center, is a "good location. I think it will be a good market for them (Gordmans)."

Gordman agreed, saying his company has made a commitment to the Twin Cities region, inclulding Roseville, "because it is a very vibrant market" with strong demographics.

"Roseville is an important MSA (metropolitan statistical area) sub-market being across from Rosedale (Center)," he added. "It is a real good trade area."

Currently, Gordmans has two other Twin Cities locations, one at Burnsville Center in Burnsville; the other at Tamarack Village in Woodbury.

(Want to keep abreast of business and other news on Roseville Patch?  Sign up for our free Roseville Patch email newsletter.)