Neiman Marcus is closing most of its Last Call stores, the discount arm owned by the luxury retailer.
The Dallas-based company said on Wednesday that a “majority” of its 22 Last Call stores in the United States will close in the fall as it focuses on selling luxury at full price. Some stores will remain open to sell the remaining inventory of Neiman Marcus rather than buying new merchandise. The company has not decided which Last Call locations will close.
Around 500 jobs will be cut in Last Call, but some employees will be placed in other roles within the company. Another 250 managerial jobs will be cut in Neiman Marcus stores as part of the company’s goal to âgrow its luxury clienteleâ. Two distribution warehouses in Texas are also closing.
Neiman Marcus has 43 locations in the United States and also owns Bergdorf Goodman.
The changes within Last Call and Neiman Marcus are intended to drive âaccelerated profitable and sustainable growth,â CEO Geoffroy van Raemdonck said in a press release. He said the brand is also stepping up its digital efforts as shoppers change their online habits.
The closure of Last Call by Neiman Marcus goes against the trend of department stores which are increasingly turning to the discount sector. Cheaper competitors like TJMaxx, Marshall’s and Target continue to increase sales as buyers seek deep discounts. Who has crowded department stores, forcing them to lower the prices of clothes or put them on sale, which weighed on profits.
To help attract customers, retailers are opening discount stores. Nordstrom Rack expands and Macy’s Backstage opened in 2015 and recently said he is adding the concept to some of his department stores.