Last year was a tough one for many luxury retailers and the incoming chief executive at Neiman Marcus, Karen Katz, will tell you that her company was no exception.
"Luxury retail in general took the hardest hit during this recession," Ms. Katz told the Dallas Business Journal. "Our customers pulled back dramatically from spending."
On the plus side, Ms. Katz can point to recent double-digit year-over-year sales improvements at the chain.
"The customer is definitely back in the stores," she said.
Most observers agree that Neiman Marcus, like others, needs to make some changes coming out of the experience of the Great Recession. The retailer has more tightly managed inventory and tinkered with discounts and lower price points to keep its offerings accessible to shoppers.
The company continues to look for ways to further improve on the customer experience, as well.
Ms. Katz told the Dallas Business Journal, "I believe that the intersection of traditional retailing, e-commerce retailing and social networking … all of that is going to come together in a very different way than we can see it today. We are just starting to understand how powerful that intersection can be, so we'll see where it evolves to."
Discussion Questions: What do you think Neiman Marcus should do to be more successful in light of the realities of the current marketplace and its competition? Do you see online, mobile and social media being key to the chain's future growth prospects?