Neiman Marcus abandons non-price activities and focuses on high-end customers.
The private luxury retailer said it was closing more than half of its remaining 22 Last Call stores, which sold designer brands at very bargain prices. The company said on Wednesday that the measures, which will result in 500 job cuts over the next eight months, are designed to free up resources to better focus on high-end customers.
As part of these efforts, the Dallas-based company is combining the online and in-store teams and will shift the role of salespeople to what it calls trusted customer advisors who will help customers not only buy products, but help them with food options and other services. like the beauty and style of wardrobe. Neiman Marcus will also eliminate 250 non-sales associates.
Neiman Marcus Group CEO Geoffroy van Raemdonck told The Associated Press that 40% of the company’s sales came from customers who spent an average of $ 50,000 a year.
Van Raemdonck said bringing its stores online and equipping them with the best leadership, tools and support enables the retailer to deliver on its commitment to âbuild deep and long-term customer relationshipsâ.
The company also announced its intention to sell two distribution centers in Texas.
Van Raemdonck declined to comment on how business has been affected by the spreading new virus, which is now declared by the World Health Organization as a pandemic. But van Raemdonck said it will impact the economy, although he is not sure how long it will last. He noted that the company has set up an emergency team to deal with various scenarios.
“It’s very uncertain, but we have to keep a cool head and not panic,” Van Raemdonck said. âWe have to be nimble and decisive.
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