Nordstrom, Kohl’s turn to collabs to stay relevant with shoppers

The trend: Department stores are reinvigorating their assortments to stay relevant with shoppers.

• Nordstrom won the bid to become the first retail partner for Rihanna’s Savage X Fenty intimates brand; products will be available in 16 stores as well as online.
• Kohl’s plans to have 200 Babies R Us shop-in-shops by the end of September, which will allow it to expand its selection of baby merchandise beyond clothing.

How we got here: Department stores are trying to find their niches to avoid losing sales to mass merchants and specialty retailers—with varying results.

• Nordstrom’s focus on stocking “the brands that matter most”—like Hoka, Vuori, and adidas—made it one of the few banners to grow sales in the previous quarter. The retailer is counting on its Savage X Fenty tie-up to build on that momentum, and bring in younger shoppers looking for size-inclusive brands.
• Kohl’s, on the other hand, is taking more of a kitchen-sink approach to bring customers back into stores—with lackluster results so far. The retailer is targeting families with young children via partnerships with Babies R Us, Limited Too, and maternity brand Motherhood; beauty enthusiasts via its partnership with Sephora; and everyone else with its Amazon returns partnership.

The big takeaway: Both Nordstrom and Kohl’s are to a certain extent relying on the strength of other brands to buoy their own businesses—but the latter’s struggle to reignite sales shows the limits of that strategy. Instead, the retailer should take a page from Nordstrom’s book and think more strategically about how to use brand partnerships to appeal to a specific audience, rather than trying to be everything to everyone.