5 Things Neiman Marcus Discovered About Today’s Luxury Shoppers

High-income buyers who help make up the strongest part of the economy are improving results at Neiman Marcus.

The Dallas-based retailer’s CEO, Geoffroy van Raemdonck, said his customers are increasing sales and profits as they shop to get back to work, attend social events and get back to their usual pace of travel.

“We know that the stock market has been especially volatile and can affect our business, but the confluence of real estate and oil prices is through the roof” is fueling demand, van Raemdonck said. Wealthy consumers own real estate and oil and gas stocks and assets, especially in Texas, where families pass down energy-producing assets that generate royalty income.

He is watching inflation and other economic factors, but said, “We’re looking to capture the tailwinds of what’s fueling demand now and monitor the headwinds of inflation.”

Here are five takeaways from today’s luxury buyers:

1. The client is on average seven years younger.

More than 60% of the company’s customer base is now Gen X, Millennial or Gen Z, bringing the average age of its customers from 40 to 30 years old.

2. Neiman Marcus is acquiring more new customers who spend at least $10,000 a year with the retailer.

And one in six new customers returns within the first 90 days.

3. They are buying the top 20 brands that are 70% above pre-pandemic levels.

Sales of the men’s clothing and footwear, women’s shoes and handbags categories increased by double-digit percentages compared to 2019.

4. They are everywhere.

Shoppers are strong at the retailer’s 36 Neiman Marcus stores, two Bergdorf Goodman stores and five clearance centers. Half of the retailer’s stores are generating sales at the highest level in their history, including NorthPark Center, which historically always ranks in the top 3, often No. 1. And two-thirds of its stores are performing at levels highest sales in the past. decade.

5. Buyers are responding to special brand activations.

Events at key stores have been a hit, like the recent Prada pop-up at Neiman Marcus in NorthPark that brought in more than $10 million in sales in two days.

The Prada pop-up at the Neiman Marcus store in NorthPark Center was open from May 11 to June 1.
The Prada pop-up at the Neiman Marcus store in NorthPark Center was open from May 11 to June 1.

Neiman Marcus is a private company and does not disclose its quarterly results, but van Raemdonck said sales in the spring quarter ending April were up 30% from the same period last year.

Profitability has also increased with more consumer purchases made at full prices. Inventories, after being historically remarkably tight last fall, have returned to pre-pandemic levels. Stores added 220 new brands for the spring, and existing brands expanded to more locations.

Van Raemdonck said the company has more than $1 billion in cash and plans to spend $300 million to upgrade its stores. Upcoming renovations are Bal Harbour, Fla.; Atlanta; Westchester, New York; Saint Louis; Oakbrook in Chicago; Houston; Paramus, NJ; San Diego; and Tysons Galleria outside Washington, D.C.

The company is also spending $90 million on its supply chain that is focused on its Dallas distribution center at Pinnacle Park. It will move out of its Irving distribution center, which it has already sold, at the end of this year. About 200 million dollars are being invested in technology. Bergdorf Goodman, which has seen its e-commerce business double since 2019, will expand its e-commerce business outside the US next year as part of an investment in Neiman Marcus by Farfetch.

Dallas approves $5 million in incentives for Neiman Marcus to keep its headquarters in Dallas
Farfetch invests $200 million in Neiman Marcus and Bergdorf Goodman
Neiman Marcus buys the Seattle tech company that helps it combine retail and online shopping

Twitter: @MariaHalkias

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