Neiman Marcus' robust reemergence
Neiman Marcus has emerged from bankruptcy stronger than before because it has centered its turnaround strategy on customer relationships and giving them choices, CEO Geoffroy van Raemdonck told Axios Pro's Richard Collings at the Axios BFD Summit Wednesday.
What he’s saying: When the luxury department store thinks about e-commerce, “we believe that the customer [should be] given the choice to shop in store or shop online,” van Raemdonck said.
State of play: The company said its omnichannel investments early on positioned it well to “weather the storm of the pandemic.”
- When it emerged from its financial restructuring with a pre-arranged agreement and a fresh injection of cash, it had already made investments in technology and the connected supply chain.
- The company saw that pay off during a period of uncertainty and gave the company “confidence that the business is resilient, that our agility was able to continue to drive revenue,” van Raemdonck said.
The company believes its e-commerce efforts, as well as putting money toward its assortment, have helped upgrade its customers’ experiences.
- “What we're seeing is that we have more loyal customers today than we had before,” he said.
What’s next: He said Neiman is in the process of refreshing its app and transitioning to two warehouses.
- The retailer has also transitioned into a new order management system.
- He said Neiman has spent hundreds of millions of dollars on improving its supply chain and upgrading its stores.
- “So we put a lot of money into things that will pave the way for long-term growth,” van Raemdonck said. “Some of it we had benefits last year, but most of it is benefits we're gaining now.”
The bottom line: As for the fate of the company itself, van Raemdonck said its shareholders have been faithful.
- “Our shareholders are exhibiting all the signs of committed shareholders who want this business to be thriving for the long term,” he said.