What: With sales increasing, the retailer plans to invest USD 500 million to build a digital ecosystem.

Why is it important: Neiman Marcus is developing its omnichannel strategy, both betting on stores and e-commerce.

Neiman Marcus no longer reports public financial results but its CEO provided figures to The Wall Street Journal and WWD showing comparable sales for the February-April period rose 43.8% compared with the same period last year. Compared with 2019, sales were down 6.6% and e-commerce sales represented about 35% of total revenue, rising 1.6% from 2019. Also, Neiman’s top 20 luxury brands were up about 35% in the fiscal third quarter compared to the pre-Covid period. Men’s, shoes and handbags were the best categories, while women’s apparel and formal wear have not recovered yet.

The company plans to invest more than USD 500 million over the next three years to refresh stores omnichannel capabilities, speed up its supply chain, expand same-day delivery and improve its digital business. Neiman Marcus’s landlords are kicking in USD 100 million of the planned investments. The investments also include an agreement to acquire Stylyze, a machine learning software operating under SaaS, that curates outfits for customers based on their past purchases and browsing history. The acquisition will allow Neiman Marcus to engage even more with luxury customers, and convert one-time shoppers into lifetime customers, attracting them with automated suggestions.

CEO Geoffroy van Raemdonck said he wants to focus on high-end luxury customers, including the 40% of Neiman Marcus shoppers who spend at least USD 10,000 a year with the chain, while also attracting new customers. The average order size for new customers increased more than 80% in the recent quarter compared with a year ago. Neiman Marcus ended the quarter with inventory down 31% compared with a year ago.

Neiman Marcus Group Accelerates Digital Capabilities with Intended Acquisition of Stylyze (Press Release)

Neiman Marcus Rides a Rebound in Luxury Shoppers - WSJ

Neiman’s Turns Toward Technology With Heightened Investments – WWD