Neiman Marcus to file for bankruptcy

[RJ312]

Originally Posted by bmlx

If Neiman Marcus would prefer to focus in on the upper-class and high-society types, and not shift focus towards those who live more casual lifestyles (including millenials who are now in their 30s and advancing in their careers), then they will need to downsize. Maintaining an exclusive image will also mean minimizing store numbers to the most profitable and desirable locations. Stores in places such as Hudson Yards (NYC) and NorthPark Center will probably still do well post-COVID-19 (given their proximity to the highest-end customers), but those in places with smaller numbers of the highest-end customers, such as The Shops at Clearfork (Fort Worth), will have to go.

It will also be interesting to see what happens with traditional markers of wealth as younger generations continue to mature. Older Millenials are now entering the prime of their careers, and some segments of Gen Z are now starting to enter the workforce. Those who were raised by parents valuing wealth markers as status symbols might continue to pursue those things, but those "new money" Millenials and Gen Z'ers might not. I personally have some business ideas involving the revamping of traditional wealth markers for these younger generations and the Internet age, so I might be developing a vested interest in this market in the near future, but I am not sure how the average monied-and-well-connected Millenial or Gen Z'er might react to that.

Twice in this you mention the older half of the Millennial generation, typically the 1982-1989 births or so. The 1980s born Millennials graduated into a pile of dog poo in the late 2000s or were "Last In, First Out" layoffs in that era. Their career progressions were severely curtailed. A large percentage of the 1980s born Millennials spend most of the 2010s valiantly playing catch up from the devastation wrought by 2008. Now, a lot of those 1980s Millennials have been laid off with COVID 2020.

The 1980s Millennials have the scars of recessions that the GI Generation had from the Great Depression. It will never go away. The first half of the Millennial generation is a lost generation.

There isn't a lot of wealth among 1980s born Millennials. The Millennial generation did not start until 1981 or 1982, depending upon the defining source. I prefer the 1982 start point.

Millennials are killing a lot of the consumer economy because they are not financially capable of propping things up with the scarring they've experienced from the 2 worst recessions post World War II, and they were the primary victim both times. Neiman Marcus is one of the many victims of Millennials. Though Millennials are not the only generation to kill Neiman Marcus.

Originally Posted by BLDSoon

I think Neiman Marcus’ problem would have existed with or without COVID-19. They are completely out of touch.

Among friends of my generation, even among the very wealthy, Neiman Marcus is where your Grandma shops. Or where your grandma takes you to shop. Or where your grandma shops for you. There’s no removing that old lady vibe from it and everything about them screams it. There are few if any brands they sell that you can’t get elsewhere and get a less “Grandma-y” vibe/ while you shop. Their customer service policies are not competitive. And while they focus on selling $1200 loafers, our generation, even the richest among us- are more interested in $600 custom sneakers. Many of us still buy those same loafers, just not from the old lady store.

I’d like to think Neiman Marcus will still be an option when its time for me to shop for my grandchildren’s graduation gifts- although it may look/ feel radically different. We’ll see I guess.

COVID accelerated Neiman's problems. I agree that Neiman had an image problem. I have always been too poor to be a Neiman customer. I have been inside the Neiman at Northpark while walking to other stores since Neiman's doors are close to one of the Northpark parking lots. It definitely has an old money feel to it. It feels a bit stuffy. Millennials don't do stuffy.

I've looked at some of the men's clothing and been impressed by it. I'm too poor for it. Also, I don't wear suits enough to justify the exorbitant price tag.

[carrcollie]

People don't decide to not shop at Neimans' because they are "poor". Many wealthy people have more common sense than to spend $50 on a jar of chocolate-covered potato chips (yes they have really sold these). I doubt the store's image appeals to millennials.
As I have stated lots of people buy second-hand clothing these days, it's a booming business. There are also websites where you can rent or borrow designer handbags and clothing without having to make a financial commitment to purchase.

I happen to love the atmosphere of Neiman's and it's elegance but it's the relic of a bygone era.

[ParaguaneroSwag]

Originally Posted by carrcollie

People don't decide to not shop at Neimans' because they are "poor". Many wealthy people have more common sense than to spend $50 on a jar of chocolate-covered potato chips (yes they have really sold these). I doubt the store's image appeals to millennials.
As I have stated lots of people buy second-hand clothing these days, it's a booming business. There are also websites where you can rent or borrow designer handbags and clothing without having to make a financial commitment to purchase.

I happen to love the atmosphere of Neiman's and it's elegance but it's the relic of a bygone era.

It's not only the Neiman Marcus. It's all luxury department stores. Nordstrom, Bloomingdales etc too. People are preferring to visit the stand alone stores vs going to the department store. Only Saks Fifth Ave is somewhat attracting the "Millenial and post Millenial" crowd because of their "mall inside a mall" store models.

Think about it. Someone is looking to shop for Prada in the Houston Galleria. They can either go to the Prada section at Neiman Marcus or the stand alone Prada store. Most of the time, they will choose the Prada store. If someone is paying top dollar, they will seek the better shopping experience.