Neiman Marcus Group Unveils Next Phase Of Strategic Transformation

DALLAS, March 11, 2020 /PRNewswire/ -- Neiman Marcus Group (NMG) LTD LLC (the "Company") announces today a number of strategic decisions to deliver accelerated profitable and sustainable growth with actions focused on growing its luxury customer base and driving full-price selling. These decisions are the next step in the Company's journey to become the preeminent luxury customer platform by delighting customers with differentiated products, services, and experiences.

In August 2018, the Company launched its transformation growth initiatives, which are centered on three pillars to evolve the customer experience: deepening customer relationships, building a seamless experience both online and in stores, and creating magic for customers.

Today, the Company is announcing actions that include:

• Strengthening the omni-channel customer journey; growing customer lifetime value
• Focusing on full-price selling by streamlining Last Call
• Reinvesting in its supply chain by initiating the sale process of two Texas distribution centers

"We are making purposeful decisions as we continue to transform NMG into a business that drives accelerated profitable and sustainable growth. Today is a significant milestone for NMG as the company evolves to better serve our customers, brand partners, investors, and associates," said Geoffroy van Raemdonck, CEO, Neiman Marcus Group. "The customer is at the center of everything we do and that focus is the reason why NMG continues to perform on plan. 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."

Strengthening the omni-channel customer journey; growing customer lifetime value

Neiman Marcus is elevating the delivery of the customer experience by bolstering support and providing new capabilities to sales associates – enhancing the unique bond they have with customers and facilitating a seamless shopping experience in store and online. To ensure flawless execution of delivery regardless of channel, David Goubert will expand his role as Chief Retail Officer. This evolution of the retail organization is centered on:

• Becoming more customer-centric by bringing in-store and online teams together under one leader with dedicated teams focused on the omni customer experience.
• Shifting the role of our selling associates to trusted client advisors by providing them new state-of-the-art digital clienteling tools and creating new roles at the store and regional level around key elements of the customer journey that transcend a single product transaction. Whether through dining experiences, client services, hospitality, or wardrobing customer lifestyle moments, each touch point in the customer journey is another opportunity to deepen and personalize customer relationships and position Neiman Marcus as the ultimate luxury destination.

As part of this transformation the Company will separate from approximately 250 non-selling associates across all stores. In addition, multiple new roles will be created to prioritize the focus on team and client development.

"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," said Goubert. "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."

Focusing on full-price selling by streamlining Last Call
As part of the Company's focus on full-price selling and efforts to continue to invest resources for the purpose of extending leadership in the luxury segment, the Company expects to close the majority of its Last Call stores by first quarter of its Fiscal Year 2021. Select Last Call stores will remain open to serve as a selling channel for Neiman Marcus residual inventory. In taking this action, the Company will focus on serving core high-value luxury customers and free up resources to invest in Neiman Marcus and Bergdorf Goodman. As part of this action, the Company expects to eliminate approximately 500 roles in the Last Call organization over the next eight months. Some affected associates will be placed in other roles. Others will be eligible for severance, outplacement services, as well as have an opportunity to apply for other open positions within NMG.

Reinvesting in its supply chain by initiating the sale process of two Texas distribution centers
As part of continuous efforts to strengthen its supply chain and deliver on customer expectations of speed, NMG has initiated a sale process for its distribution centers in Longview, TX, and Las Colinas, TX. The anticipated reinvestment in the company's supply chain will ensure the Company remains on the cutting edge of product distribution. This is in addition to investments already made to the Company's West Coast Distribution Center resulting in an on average four to five-day speed-to-market improvement.

"The decisions we're making today to transform the business are purposeful and will ensure NMG's future success," said van Raemdonck. "We have a loyal customer base, solid store footprint, and a strong online presence. We will continue to manage the business for continued growth and success."

About Neiman Marcus Group
Neiman Marcus Group is a luxury, multi‐branded, omni‐channel fashion retailer conducting integrated store and online operations under the Neiman Marcus, Bergdorf Goodman, Neiman Marcus Last Call, and Horchow brand names. For more information, visit http://www.neimanmarcusgroup.com.

Forward Looking Statements

Neiman Marcus Group has included statements in this press release that constitute "forward‐looking statements." As a general matter, forward‐looking statements are those focused on future or anticipated events or trends, expectations and beliefs including, among other things, the Company's expectations with respect to the actions described herein. Such statements are intended to be identified by using words such as "believe," "expect," "intend," "estimate," "anticipate," "will," "project," "plan" and similar expressions in connection with any discussion of future operating or financial performance. Any forward‐looking statements are and will be based upon the Company's then‐current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. Readers are cautioned not to put undue reliance on such forward‐looking statements. Such forward‐looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected in this press release for numerous reasons, including factors outside the Company's control. The Company undertakes no obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.

SOURCE The Neiman Marcus Group, Inc.

Related Links

http://neiman.gcs-web.com