Neiman Markus announced their 2 year plan aimed at reinforcing the company’s image as a retail innovator. In the past the department store used to be the leading example of the retail industry as the first retail store to offer a customer loyalty program and as one of the first luxury retailers to start selling products online. Now they are trying to improve their online presence along with the in-store experience, with initiatives like ship-to-store delivery and free shipping and returns all year round both for online and in-store purchases. The project announcement comes just after the news of the company’s sale to the Ares Management and the Canada Pension Plan Investment Board.
Since 2011 Neiman Markus has been trying to match the online and the in-store experience, by incorporating some of the advantages of shopping online to it’s physical stores and vice versa. Their site has been redesigned so as to align with the layout of the quarterly publications, a “find in store” button has been added to help domestic clients find products in nearby stores and international clients can now see the prices in their local currency and enjoy free shipping as well. On the other hand many technical enhancements have been incorporated into Neiman’s physical stores so as to make the experience more satisfying. Associates carry with them smart phones in order to be able to assist clients with any type of request (alterations, deliveries, availability etc). Additionally iPads are available for the customers throughout the stores.
This initiate, that the retailer budgets at $100 million dollars, will help them resist the pressure of online retail giant Amazon that keeps innovating and attracting customers through even more channels. Their last effort includes a “register and pay with Amazon” service that became available through participating online stores. Neiman’s strategy of improving at the same time all channels (in store, online and mobile) will be vital to the company’s future and is an undertaking that will take 3 years to complete. The funds will be raised during the 2014 fiscal year and implementation of the project will start in 2016.
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