Discount stores

Neiman Marcus to close half of its discount stores


Luxury retailer Neiman Marcus has decided to move away from discount stores to focus more on its luxury customers, according to a Wall Street Journal report.

The retailer plans to close more than half of its Last Call discount stores. Other retailers, like Saks Fifth Avenue and Nordstrom, have increased their presence in the discount market, opening less expensive stores to attract younger, more budget-conscious customers. Both companies now have more discount stores than regular stores.

The leader of the discount market is TJ Maxx, which opened 21 stores in 2019 for a total of 1,273. At present, Neiman Marcus has 22 Last Call stores.

“We are different from our competitors,” said CEO of Neiman Marcus, Geoffroy van Raemdonck. “Our strategy is to focus on the luxury customer and full price sales. He added that about a fifth of the retailer’s customers buy $ 50,000 of its merchandise per year. Aiming to focus more on these spendthrift customers, Neiman Marcus combines his associates in-store and online, and trains salespeople to deliver a higher level of service.

With the store closings, Neiman Marcus will lay off 250 non-sales associates, but said he will also hire new employees.

Last Call was founded in 2017. The sites will be closed over the next eight months, resulting in the loss of approximately 500 jobs. The company is also closing two distribution centers in Texas.

“It’s not a withdrawal,” said van Raemdonck. “It’s a step forward. We have a strategy that works. We want to put our efforts behind the full-price luxury customer. This is what will differentiate us from the competition.

——————————

NEW PYMNTS DATA: DIGITAL BANKING STUDY – THE BATTLE OF BREWING FOR WHERE WE WILL BANK

On: Forty-seven percent of U.S. consumers avoid digital-only banks due to data security concerns, despite considerable interest in these services. In Digital Banking: The Brewing Battle For Where We Will Bank, PYMNTS surveyed over 2,200 consumers to reveal how digital-only banks can boost privacy and security while providing convenient services to meet this unmet demand.


Leave a Reply

Your email address will not be published.