Neiman Marcus
This retailer of luxury clothes saw a 5 percent drop in its top-line sales to $4.7 billion in the 2017 fiscal year. Neiman Marcus tried several things to make some improvements and RetailDive said they seemed to be working. However, the company’s interest expenses are still a huge burden. Other suggested strategies involved cutting more than 200 jobs and making “Digital First,” a customer engagement plan. Hudson’s Bay, a Canadian company, considered acquiring Neiman Marcus, the luxury clothing retailer. Sources reported to the WSJ that the two companies were having talks in March. However, the plans of buying the luxury retailer did not work out because Hudson’s Bay was worried about the declining sales of Neiman Marcus. Another store that is affected by the decreasing interest in malls is Bebe.
Neiman Marcus
Bebe
The sales of this fashion retailer started declining when Neda Mashouf, its creative director, left after she divorced her husband in 2007. Manny Mashouf started the company in 1979. According to RetailDive, the declining popularity of malls played a major role in the challenges that Bebe is now facing. It reportedly had an operating loss of $4.6 million in 2017. The company attempted to remedy the situation by staying away from the usual retail space. It paid out $65 million to close its physical stores and focused solely on e-commerce. Forbes reported that in 2016, Bebe had a total of 180 stores. What Bebe went through might be common for retailers but Pier 1 has an unusual problem…
Bebe
