On Tuesday the 10th, Neiman Marcus Group, Inc. said that they are going to put together a limited collection clothing line from a number of different designers for
this year’s holiday season. The announcement included a surprise: they are partnering with Target Corp. (TGT).
The twenty-four designers include big names like Diane Von Furstenberg and Tory Burch, and will offer items at prices ranging from $7.99 to $499.99 at an average of $60. Both of the retail chains will have the same items and prices, while sharing both the Target and Neiman Marcus logos on the items, according to The Wall Street Journal.
Their mindset behind this move is to open their products up to a younger and less-affluent customers. Neiman Marcus is usually associated with high markups and exclusivity, but will soon provide more attainable items.
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If the plan is successful, both stores will expand their customer base, and Neiman Marcus will see a huge increase in traffic. They are probably hoping these new customers will also be enticed by other higher-priced items.
Use Kapitall tools to analyze Target and some of their competitors. Will other mid-level retail stores begin following this partnership trend?
Interactive Chart: Press Play to compare changes in market cap for TGT, JCP, GPS, and KSS:
Interactive Chart: Use the Turbo Chart to compare the stock performance of TGT and JCP
against the performance of the S&P 500 Index (SPX):
(Written by Danny Guttridge)