Neiman, Nordstrom May Be Headed For Disaster With New Stores In New York
Neiman Marcus will open a major store in New York City in 2018, while Nordstrom will open a major complex in 2019. These plans look foolhardy in light of how the internet is robbing stores of productivity. The reality of how consumers are spending late in the second decade of the 21st century has many New York department store operators very concerned. Sales productivity has shifted to the internet cutting into store sales. Yet, in a hope of somehow remaining competitive, every major New York store has started a major renovation of its store. Whether it is Saks Fifth Avenue, Macy’s, Bloomingdale’s, Bergdorf Goodman or Lord & Taylor, each has undertaken a major renovation program to remain viable. At a time when shoppers are very reluctant to spend, New York does not need any major new store entries. But plans have been laid and we are expecting the opening of a 250,000 square foot store by Neiman Marcus at Hudson Yards in September 2018. This is a new shopping development around 28th street and 11th Avenue on New York’s West side. Neiman Marcus has always been one of my favorite stores; since I believe that Karen Katz, its CEO, has merchandise savvy the luxury shopper appreciates. The company planned the store at a time when internet shopping was a smaller share of retail sales. Now Neiman Marcus internet sales are over 30% (I am guessing closer to 35%). Read more at Forbes.
