What: Neiman Marcus CEO explains how emotional connections and relationship-building have driven the company's transformation, resulting in USD 1 billion in remote selling and improved vendor partnerships while preparing for integration into Saks Global.

Why it is important: The strategy highlights a fundamental shift in luxury retail, where success depends not just on transactions but on creating meaningful connections with customers, employees, and brand partners, while embracing operational flexibility.

Geoffroy van Raemdonck's leadership philosophy of "leading with love" has transformed Neiman Marcus from a traditional department store into a luxury relationship business. Since joining in 2018, he has refocused the company on creating emotional connections and exceptional experiences rather than purely transactional relationships. This approach has been implemented through a customer-centric, integrated business model featuring the Connect clienteling tool, which enables personalized customer communication and has generated USD 1 billion in remote selling. The company has also created a "culture of belonging" emphasizing the "power of one," offering flexible working arrangements and career development opportunities. This strategy has yielded significant results, with employee engagement increasing by 34 points compared to pre-COVID levels, improved retention rates, and a one-year increase in sales associate tenure. Despite current market challenges, van Raemdonck remains optimistic about the holiday season and the company's future integration into Saks Global following the USD 2.65 billion acquisition agreement.

IADS Notes: Neiman Marcus Group's transformation under van Raemdonck reflects broader shifts in luxury retail throughout 2024. The company's focus on relationship-driven business, highlighted in March 2024 , demonstrates successful adaptation post-bankruptcy. This strategy aligns with significant industry changes, as evidenced by the July 2024 announcement of the USD 2.65 billion Saks Global merger , which aims to combine digital capabilities and enhance customer experiences. The emphasis on organizational culture and employee flexibility has shown tangible results, with employee engagement increasing 34 points and improved retention metrics . These initiatives culminate in the pending Saks Global formation , where the combined entity seeks to leverage technological partnerships with Amazon and Salesforce to strengthen its position in the luxury market.

Remote selling drives USD 1 billion in sales for Neiman Marcus