After filing for bankruptcy in early May and recently exiting, Neiman Marcus is ready for a fresh start. In a recent interview with Vogue, Chief Executive Officer Geoffroy van Raemdonck shares his plans for the luxury department store chain.
Neiman Marcus has successfully shed most of its outstanding debts, which puts them in a good place to make a successful comeback in the market.
“I feel really good. It’s an important moment for the industry, because we generate so much revenue for the thousands of brands that we represent. Not only do we have business continuity, we now have the best balance sheet in the business. The rest of this year will be challenging, but it’s a really high moment,” Raemdonck said.
If it wasn’t for the current pandemic, the retailer would have never filed for bankruptcy in the first place. Although they generated $4.5 billion in sales last year, the luxury retailer was not financially prepared for the whirlwind of 2020.
Putting this year behind them, Neiman Marcus is ready to regain its status in the luxury retail industry. With department stores currently undergoing transitions to incorporate mixed-uses or experiential retail, Neiman Marcus will have to meet these ever-changing demands.
First, they will have to rebuild strong relationships with their partners and consumers. To re-establish these business partnerships, the brand will have to prove its back on its feet to help instill confidence.
“My view is that you have open communication, and so we are very forthcoming and transparent with our brand partners,” Raemdonck noted.
To restore relationships with their high-spending customers, Neiman Marcus has planned to focus on their omnichannel strategy. They have created a digital tool, NM Connect, to provide high-touch customer service offerings. The tool allows employees to source products, give styling advice and prepare items for pickup in-store.
Neiman Marcus’ success post-bankruptcy will be largely determined by their ability to re-connect with their consumer, both in-store and online. Their strong and loyal relationships with customers has remained the core foundation of their business, and they plan to continue that for the foreseeable future.
The company is also planning to target Millennials and Gen Z, which account for 48% of their consumer base. These generations together represent a large amount in spending power of consumers in the US today, so it only makes sense to cater their services and products primarily towards this demographic.
“Stores are still really important. It’s where the relationship gets created with the customers. But we recognize that people are engaging more from home, therefore we want to make sure we’re able to connect with people on digital devices. Our business model is flexible enough that we can serve you the way you want,” Raemdonck said.
Source: Neiman Marcus Comeback – Vogue Business 9/21/20
Photo Credit: Neiman Marcus Comeback – Vogue Business 9/21/20
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About Neiman Marcus Group
Neiman Marcus Group is a luxury, multi-branded, omni-channel fashion retailer conducting integrated store and online operations under the Neiman Marcus, Bergdorf Goodman, Neiman Marcus Last Call, and Horchow brand names. For more information, visit http://www.neimanmarcusgroup.com.
