Member News: Large-scale changes at Neiman Marcus could impact hundreds of jobs

Member news, Luxury, Fashion & Beauty | March 11, 2020

Large-scale changes at Neiman Marcus could impact hundreds of jobs

Source: Dallas Business Journal - Full Article: Here

By Dallas Business Journal staff

Neiman Marcus Group announced a number of large-scale changes Wednesday in an effort to focus on full-priced luxury stores, reorganize its supply chain and serve customers' online and in-store habits.

Most of the company’s Last Call locations, which sell cut-price merchandise, will be closed by the first quarter of fiscal year 2021, according to a statement from the Dallas retailer. Select stores will remain open to sell residual inventory.

About 500 jobs will be affected by the closures over the next eight months with an undisclosed number of employees being placed into different roles. Others will receive severance and placement services, according to the announcement.

The move comes in an effort to double down on the company’s luxury segment.

Two distribution centers — one in Las Colinas and the other in East Texas — will also be sold. The projected timeline of the sales and whether the retailer plans to shutter the centers once the transactions have occurred remain unclear.

When asked, a spokesperson said until the company has further information on the value of the buildings, no decisions will be made around its investment strategy. The centers will continue to operate business as usual.

More than 1,400 workers are currently at the Las Colinas distribution center, and more than 250 work in the Longview center, according to a spokesperson for the company.

An investment in the West Coast distribution center has resulted in a four- to five-day speed-to-market improvement for the company on average, and selling the two Texas centers are the next step in the process, according to the company.

Shipping may also be a factor as the company strives to make a cohesive online and in-store experience for its customers.

In order to do so, David Goubert’s role as chief retail officer will be expanded to include both digital and store teams.

"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,” Goubert said in a prepared statement.

As a part of focusing on all touch points for customers, another 250 “non-selling” workers, such as brand experience managers and visual merchandising associates, are expected to be laid off from stores across the country. The company will also create new roles that will focus on customer relationships and team development.

"We are making purposeful decisions as we continue to transform NMG into a business that drives accelerated profitable and sustainable growth,” said CEO Geoffroy van Raemdonck in a prepared statement. “Today is a significant milestone for NMG as the company evolves to better serve our customers, brand partners, investors, and associates.”

In November, Neiman Marcus eliminated under 100 positions.