Another Nail in the Coffin for Department Stores?

Beauty products are a growing industry, and one retailer may be emerging as top dog. If you haven't come across Ulta Salon, Cosmetics and Fragrance (Nasdaq: ULTA) before, now is the time to take notice. This bricks-and-mortar retailer is growing fast, expanding its nearly 500-store footprint with the idea of ultimately opening 1,200 stores in the United States.

What's most impressive about Ulta is its potential to disrupt the traditional department-store beauty product retailing model. The beauty products market is worth about $60 billion annually, and a significant portion of this market now belongs to department stores like Nordstrom (NYSE: JWN) ,Macy's (NYSE: M) , Dillard's (NYSE: DDS) , and even JC Penney (NYSE: JCP) . But Ulta, the new kid in town, is rapidly winning market share. So which retailer is the better bet for your investment dollars?

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The article Another Nail in the Coffin for Department Stores? originally appeared on Fool.com.

Catherine Baab-Muguira has no positions in the stocks mentioned above. Isaac Pino has no positions in the stocks mentioned above. The Motley Fool owns shares of Dillard's. Motley Fool newsletter services recommend Ulta Salon, Cosmetics & Fragrance. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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