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5 things Neiman Marcus discovered about today’s luxury shoppers

Maria Halkias, The Dallas Morning News on

Published in Fashion Daily News

3. They’re buying top-20 brands that are up 70% from pre-pandemic levels.

Sales of men’s apparel and shoe categories, women’s shoes and handbags are up by double-digit percentage increases vs. 2019.

4. They’re everywhere.

Shoppers are strong across the retailer’s 36 Neiman Marcus stores, two Bergdorf Goodman and five clearance centers. Half of the retailer’s stores are generating sales at the highest level in their history. And two-thirds of its stores are performing at the highest sales levels of the past decade.

5. Shoppers are responding to special brand activations .

Events in key stores have been a hit, such as the recent Prada popup at the Neiman Marcus at NorthPark that brought in more than $10 million in sales in two days.

 

Neiman Marcus is privately held and doesn’t disclose its quarterly results, but van Raemdonck said sales in the spring quarter that ended in April recorded a 30% increase from the same period last year.

Profitability is also up with more consumer purchases made at full prices. Inventories, after being historically and noticeably thin last fall, have returned to pre-pandemic levels. Stores added 220 new brands for spring, and existing brands expanded into more locations.

Van Raemdonck said the company has well over $1 billion in liquidity and plans to spend $300 million to upgrade its stores. Up next for renovations are Bal Harbour, Florida; Atlanta; Westchester, New York; St. Louis; Oakbrook, Illinois; Houston; Paramus, New Jersey; San Diego; and Tysons Galleria outside Washington, D.C.

The company also is spending $90 million on its supply chain that’s focused on its Dallas distribution center in Pinnacle Park. It will exit its Irving distribution center, which it has already sold, by the end of this year.

About $200 million is being invested in technology. Bergdorf Goodman, which has seen its e-commerce business double since 2019, is expanding its e-commerce business outside the U.S. next year as part of an investment in Neiman Marcus by Farfetch.

©2022 The Dallas Morning News. Visit dallasnews.com. Distributed by Tribune Content Agency, LLC.

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