Dallas-based department store chain Neiman Marcus announced a new strategy focused on "growing its luxury customer base and driving full-price selling," that includes closing most of its Last Call off-price stores by the first quarter of its fiscal year 2021. Some Last Call stores will remain open in order to sell residual Neiman Marcus inventory. "In a time of uncertainty, you should put your efforts toward your core business," said Neiman Chief Executive Geoffroy van Raemdonck. In his company's case, the foundation is in "serving and delighting the luxury customer … who buys full-price." Therefore the retailer will focus its efforts on customer service at its luxury outposts, which also include Bergdorf Goodman in Manhattan. Producing high-volume, repeat transactions from its most lucrative clients will boost Neiman Marcus' profit margins, Van Raemdonck said. "The Last Call business doesn't have the flywheel effect like our full-price business," he said. "When we spend time on customers by delighting them with a beauty service or getting them to spend time in our restaurants, we know they'll spend more."

While Neiman Marcus pulls back from off-price, its peers in the department store space are investing in their own discount entities. Hudson's Bay-owned Saks Fifth Avenue hired a new president for Saks Off 5th last month, while Macy's and Nordstrom turn to their own off-price operations to pick up sales from budget shoppers and off-load some inventory.

statement: Neiman Marcus Group Unveils Next Phase Of Strategic Transformation