How Neiman Marcus Used Recession Reality to Peddle Fantasy Holiday Gifts
For over 80 years, luxury department store chain Neiman Marcus has produced a compendium of covetable goods for holiday gifting -- some so posh, you wonder who might be picking up the phone to order (much less how NM planned to ship a pair of camels back in 1967). This year however, in the wake of a slowly rebounding economy, Neiman's tipped its assortment to balance luxury with frugality. Very smart.
The Dallas-based chain has made a point of not completely forsaking its legacy of luxe especially now as it celebrates the 50th year of proffering unique his and her gift items (think twin Shar Peis or airplanes). But just as loyal customers have come to expect such frivolity in the Christmas catalog, it's important for the company's management to reinforce the idea in shoppers' minds that they do recognize the reality of recession.
Thus, a mix of price points from $15 (a candlewick trimmer) to $1.5 million (a Dale Chihuly-designed swimming pool). Neiman's president Gerald Barnes touts the 63 affordable items as, "Fab finds -appealing offerings at approachable prices." Translation: stuff you can actually buy.
The result: the luxury retailer stays grounded as a destination for over-the-top expensive items while throwing a bone to aspirational shoppers, a la Tiffany (think $50 key chains stamped with the legendary logo) and even Coach (think mid-priced offerings in bright prints targeting a younger, less affluent customer).
Which is a sight better than the last initiative in which the retailer trotted out a test location of a discount store. Dubbed "Last Call" like its famous final sale outlets, the 11,000 square foot space holds a selection of merchandise that's sourced separately from Neiman's regular stores. Price tags reflect 30 â€" 40 percent off retail. It's a half-baked scheme that shows lack of commitment â€" unlike the catalog which isn't billing any merchandise as discounted.
Neiman Marcus' revenues for the end of its fiscal year were $3.69 billion compared to $3.64 billion in the prior year. That weak gain along with comps decreasing by 0.1 percent are good indicators that the chain is still on shaky ground and needs all the positioning help it can get. The good news is that Christmas catalog is available on an iPhone app as well as online. Perhaps those 63 affordable items will leap off the screen and prompt shoppers to click and buy.
Images via Neiman Marcus
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