What: new investment to reinforce the management team and the supply chain

Why it is important: the department store entered and exited Chapter 11 last year, and is now making investments to better respond to the crisis. The investments will reshape the Neiman Marcus and Bergdorf Goodman customer experience.

To support multi-brand luxury online business, Neiman Marcus Group (NMG) will invest USD 85 million gross in supply chain innovation, specifically systems and fulfilment centres, by implementing a new order management system, a new warehouse system, and by investing in the company's Pinnacle Park distribution facility. "We are transforming NMG's core operating capability to support our growth as the luxury destination of choice for customers," said Willis Weirich, Executive Vice President, Group Operations & Chief Supply Chain Officer. "As the demand for luxury products continues to grow, so does our supply chain network and infrastructure. These investments ensure that NMG can quickly deliver the luxury products our customers want."

NMG is also making changes in its management teams. After reshuffling its board last December, it has appointed Bob Kupbens  Executive Vice President, Chief Product and Technology Officer. He acquired a strong background in elevating customer experiences through multiple senior roles overseeing eCommerce, digital products and technology.

Another appointment is the one of Paolo Riva at the newly created position of General Manager, Brand Partnerships & Merchandising in the Neiman Marcus brand. He has an extensive brand and P&L experience in luxury senior global roles.

Investing in the supply chain is the latest move done by department stores to respond to the new demands and cope with the crisis as digital retail has been skyrocketed since the beginning of the pandemic. In Chile, Falabella will invest USD 1.085 billion to develop information technology and logistics over the next few years; while El Corte Inglés in Spain is also investing and reinforcing its logistical infrastructures to become more competitive.

Neiman Marcus Group Reshapes the Luxury Customer Experience with [...]