Dallas-based Neiman Marcus continues to open new stores in the slowing economy. Led by Chairman, President and CEO, Burton M. 'Burt' Tansky, Neiman Marcus is leading the pack when it comes to luxury retailers. With capital expenditures in the one-two hundred million dollar range, some would begin to question whether the company has the resources to keep building and maintaining growth. The luxury giant is planning to open a new store in Bellevue, Washington at The Bravern in March 2009 where the store will take up 125,000 square feet of brand new space. Another store is scheduled to be open in the Macerich-owned Broadway Plaze in Walnut Creek, California where the East Bay location is taking up a 108,000 square foot lot and will be up to three stories. However, with the slowing economy and projections for it to get worse before it gets better--is this a smart move on the part of Neiman Marcus?
Neiman Marcus believes that the upscale retail store will have many customers in the up-and-coming markets meanwhile the current locations are becoming a shopping destination for surrounding cities and tourism as well as new commerce centers. They are strategically placing themselves into expanding areas and building stores at a rate of one to two stores per year. The goal is to reach out to smaller markets that will attract the wealthy, baby boomers, children of baby boomers and the newly rich.
With over 40 stores already in its portfolio, including two Bergdorf Goodman locations in New York and twenty-two Last Call discount outles, Neiman offers an arsenal of many famous and reputable luxury brands causing a strong following to support its store openings. To name a few, Neiman hosts Adam Jones, Loro Piana, Prada, D&G, DKNY, Bianca Nero, and 7 For All Mankind. They maintain their presence in the final three parts of the retail supply chain: wholesale, operations and sales and lets individual brands handle the manufacturing and raw materials needed to make the clothing.
What do you think? A brazen attempt at forward thinking or a bad move in this troubled economy?
