(Reuters) – Shares of Nordstrom Inc Gap Inc. (NYSE:), and (NYSE:NYSE:) fell more than 20% each on Wednesday, as concerns over product shortages during Christmas season raised concern that retailers might lose out to better-prepared rivals.

A number of Wall Street analysts have lowered their price targets with Wells Fargo (NYSE) nearly half its target for Gap and Jefferies (NYSE) cutting the largest cut at Nordstrom.

Nordstrom reported Tuesday that it had experienced severe shortages of shoes and apparel for women in its off-price division, Nordstrom Rack. Gap also lost $650m and reduced its annual forecast.

Jefferies downgraded Nordstrom from “buy to” and reclassified it as “hold”. Credit Suisse (SIX) Analysts said Nordstrom Rack does not position itself well in terms of competition compared to competitors such as TJX(NYSE:) Cos and Burlington Storess (NYSE.

According to the brokerage, “Nordstrom must reevaluate its strategy to use Rack primarily to clear out end-of season products from the brands it sells in full-price shops.”

Nordstrom CEOs stated that after earnings, they didn’t respond as quickly or aggressively enough to maintain sufficient inventory.

Contrary to this, there are other retailers such as American Eagle Outfitters Macy’s, (NYSE) Target (NYSE:) have chartered containers ships or used air freight to order in advance to avoid supply-chain bottlenecks and stock up on holiday supplies.

In this market, retailers are rewarded for exceeding expectations and raising guidance more often than they would normally. Gap did exactly the opposite. This market has been harsh to struggling retailers,” Zachary Warring, CFRA Research analyst said.

Gap and Nordstrom shares were expected to be at their lowest point in around a decade.

Shares of retailers after reporting third quarter results: https://graphics.reuters.com/NORDSTROM-STOCKS/egpbkadnbvq/chart.png