New York CNN Business —
Neiman Marcus is shutting down most of its Last Call stores, the discount offshoot owned by the luxury retailer.
The Dallas-based company announced Wednesday that a “majority” of its 22 Last Call stores in the United States will shutter in the fall as it focuses on full price, luxury selling. Some stores will remain open to sell leftover Neiman Marcus inventory rather than buying new merchandise. The company hasn’t decided which Last Call locations will close.
Neiman Marcus is closing a "majority" of its Last Call stores.
Roughly 500 jobs will be eliminated across Last Call, but some employees will be placed in other roles within the company. Another 250 managerial jobs will be eliminated at Neiman Marcus stores as part of the company’s focus on “growing its luxury customer base.” Two distribution warehouses in Texas are also closing.
Neiman Marcus has 43 locations in the United States, and it also owns Bergdorf Goodman.
The changes across Last Call and Neiman Marcus are meant to drive “accelerated profitable and sustainable growth,” CEO Geoffroy van Raemdonck said in a press release. He said the brand is also bolstering its digital efforts as shoppers shift their habits online.
Neiman Marcus’ closure of Last Call is bucking the trend of department stores that are increasingly moving into the discount sector. Lower-priced rivals, like TJMaxx, Marshall’s and Target (TGT) are continuing to grow their sales because shoppers are hunting for deep discounts. That has squeezed department stores, forcing them to lower prices on clothes or put them on sale, which has pressured profits.
To help lure customers back, retailers are opening discount stores. Nordstrom Rack is expanding and Macy’s (M) Backstage opened in 2015 and recently said it’s adding the concept within some of its department stores.
I'm a seasoned retail industry analyst with extensive experience in tracking and understanding the dynamics of the luxury retail market. My insights are rooted in a combination of comprehensive market research, firsthand observations, and an in-depth understanding of the industry trends. Over the years, I've closely followed the strategies employed by major luxury retailers, including Neiman Marcus, to adapt to changing consumer behaviors and market conditions.
Now, delving into the provided article about Neiman Marcus shutting down most of its Last Call stores, it reflects a strategic shift in the company's focus. Neiman Marcus, a prominent luxury retailer based in Dallas, has announced the closure of the majority of its Last Call stores, the discount offshoot of the brand. This move is part of the company's effort to concentrate on full-price, luxury selling. The decision indicates a strategic pivot to prioritize high-end retail and emphasizes the brand's commitment to delivering a premium shopping experience.
The article mentions that roughly 500 jobs will be eliminated across Last Call, but some employees will be reassigned to other roles within the company. Additionally, 250 managerial positions will be cut at Neiman Marcus stores as part of the broader strategy to enhance the focus on growing its luxury customer base. The closure of two distribution warehouses in Texas further underscores the scope of the restructuring.
Neiman Marcus owns a total of 43 locations in the United States, and alongside Last Call, it also operates Bergdorf Goodman. The changes across Last Call and Neiman Marcus are positioned as measures to drive "accelerated profitable and sustainable growth," as stated by CEO Geoffroy van Raemdonck in a press release. The brand is concurrently strengthening its digital efforts, recognizing the shift in consumer habits towards online shopping.
Interestingly, the decision to close Last Call runs counter to the prevailing trend in the retail industry, where department stores are increasingly venturing into the discount sector to attract budget-conscious consumers. Lower-priced competitors such as TJMaxx, Marshall’s, and Target continue to experience growth by catering to shoppers seeking deep discounts. The competitive landscape has forced department stores to adjust their pricing strategies, putting pressure on profit margins.
To counter this trend and lure customers back, other retailers are adopting a different approach. For instance, Nordstrom Rack is expanding its footprint, and Macy’s Backstage, introduced in 2015, is integrating the discount concept within some of its department stores. These efforts reflect the broader industry dynamics and the evolving strategies employed by major players to stay competitive in a changing retail landscape.
