Neiman Marcus Group Inc. (Dallas) announced a new strategy that includes lower-priced merchandise, according to The Wall Street Journal.
The luxury specialty department store described the new approach as an effort to rebalance its merchandise to include less-pricier goods within its designer collections. Until the program is fully implemented, probably by next spring, the company is planning on using promotions and other events to boost sales.
Neiman Marcus, owned by private-equity funds TPG Capital and Warburg Pincus LLC., reported third-quarters sales dropped 24 percent. Ceo Burt Tansky says that the retailer doesn't see the economic slide ending soon. “We believe that the recovery is tentative and any improvement will be gradual,” he told investors in a conference call.
The retailer operates 40 Neiman Marcus stores, the Bergdorf Goodman store in New York City and six Cusp boutiques.