1 Hidden Threat to Target Corporation (TGT)’s Retail Dominance: Nordstrom, Inc. (JWN)

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What became clear was that brick-and-mortars could no longer get by on low prices or brand recognition alone. The competitive landscape of the retail industry is changing and companies are being forced to either adapt or die a slow death.

Looking ahead, handcrafted home products from Etsy’s vast array of independent designers should be a winning combination for Nordstrom, Inc. (NYSE:JWN). Especially thanks to Etsy’s army of 850,000-strong artists and sellers. While we will have to see if Etsy’s sellers can deliver at the scale and price this partnership demands, it’s a proactive move on Nordstrom’s behalf, nonetheless.

Why investors should care
This is revolutionary, not only for little ol’ Etsy, but also for the retail industry at large. It is no longer enough for Target to rely on sporadic fashion collaborations. Instead, the winning retail stocks will be those that offer guests a mix of exclusive products, designer collaborations, one-of-a-kind merchandise, and other fresh incentives.

Ultimately, I think most analysts are underestimating what this could mean for Nordstrom in the future. The average consumer values one-off products that can’t be found elsewhere online or otherwise — particularly when these items are affordable.

As it stands, Target Corporation (NYSE:TGT) is revered as the place to shop for the latest fashions and home decor at reasonable prices. However, the Etsy-Nordstrom partnership could change this — in the process bringing a younger demographic into Nordstrom’s arms. I currently own shares of Target, but Nordstrom is becoming more and more appealing these days.

I suspect both Nordstrom, Inc. (NYSE:JWN) and Target will be successful down the road, even as Amazon continues to shake things up in the retail space.

The article 1 Hidden Threat to Target’s Retail Dominance originally appeared on Fool.com and is written by  Tamara Rutter.

Fool contributor Tamara Rutter owns shares of Amazon.com and Target. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com.

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