It looks like Neiman Marcus wants to make their clientele more exclusive. The store’s highest consumers spend up to $27,000 in the store each year and the luxury store’s goal is to merely target those customers, reports Business Insider.
Geoffroy van Raemdonck, CEO of Neiman Marcus said,
“We’ve decided that we are no longer about market share, and we are no longer about selling everywhere on the price spectrum, from clearance to high-end jewelry.”
“The business value of this approach is we get to know our customers better. The economic value is I avoid churn, and the price is no longer the main consideration.”
He went on to tell Fortune during an interview,
“There is a very large number of high-net-worth individuals, people worth more than $5 million to $10 million. And 2% of our customers are still a fraction of that population in the US… I see much more risk in having a one-time transaction where I don’t know if you will ever come back.”
The CEO revealed that Neiman Marcus customers shop at the store 25 times throughout the year.
Neiman Marcus previously closed their store chain, Neiman Marcus Last Call, where consumers could find discounted designer items. Many of the stores shut down at the beginning of the pandemic after filing for Chapter 11 bankruptcy. In Sept 2020, Neiman Marcus rose from bankruptcy with a new plan to only appeal to wealthy shoppers.
“We made a clear choice that we’re going to do one thing and do it well…. We believe luxury is about uniqueness and emotion,”
said van Raemdonck.
#Clique, what are your thoughts?