Neiman Marcus changes retail strategy, minimizes Last Call operations

Neiman Marcus is restructuring its online and in-store retail teams in a plan to promote more profitable growth. The luxury fashion retailer will bring the two teams together under one leader as a means to streamline its customer's shopping experience. For this, the company's David Goubert will expand his role as chief retail officer.

"We are operating from a place of strength with a loyal luxury customer base, dedicated retail experts, a solid store footprint, and a growing online presence," Goubert commented in a statement. "Bringing our stores and online teams together and equipping them with the best leadership, tools, and support positions us to deliver on our commitment to building long-term, deep customer relationships."

With this change, Neiman Marcus has also planned to drastically cut down operations for its off-price line, Last Call. The company will close the majority of Last Call stores by the first quarter of its fiscal year 2021, with a select few locations remaining open as a selling channel for Neiman Marcus residual inventory. Approximately 500 employee roles will be eliminated, with some associates placed in other roles and other being eligible for severance or outplacement services.

Neiman Marcus said it wants to strengthen its place in the luxury sector, and the closure of most Last Call business will free up resources to invest in Neiman Marcus and Bergdorf Goodman.

"The customer is at the center of everything we do and that focus is the reason why Neiman Marcus Groupcontinues to perform on plan," Geoffroy van Raemdonck, CEO of the Neiman Marcus Group, stated. "We are building a solid luxury customer base and taking deliberate steps today to align Neiman Marcus' in-store and online teams, revisiting how we deploy our resources by investing in our supply chain, and streamlining Last Call."

Picture:Facebook/Neiman Marcus