Neiman Marcus courts wealthy shoppers: Neiman Marcus is leaning further into luxury to differentiate itself from the “mushy middle” department stores bearing the brunt of reduced discretionary spending.
- The retailer announced two new roles, chief brand officer and chief retail officer, as it focuses on the development and execution of unique, engaging omnichannel experiences that strengthen the brand’s appeal to affluent audiences.
- Neiman Marcus’ $200 million investment will also go toward expanding its personal shopping service and adding more food and beverage concepts to its stores as it vies to become a “lifestyle destination for the luxury consumer.”
The big picture: Department store closures are expected to outpace the industry average in 2023, per a UBS analysis reported by Retail Dive, as the sector faces rising competition from off-price and discount stores, as well as luxury retailers.
- Department store sales fell by 2.9% month-over-month in November, the third-straight month of decline, per Labor Department data.
- As discretionary spending comes under pressure, more retailers will have to follow in Saks Fifth Avenue’s and Neiman Marcus’ footsteps and try to reinvent themselves as experiential destinations.
- Despite the headwinds, department stores must continue to invest in their supply chain, digital channels, and fulfillment capabilities to ensure they can compete in the long term.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.