Neiman Marcus CEO Karen Katz blamed a laundry list of factors for the luxury department store chain’s troubles.
The readjustment of Macy’s and now Neiman Marcus’ continued slide speaks to the troubled waters around luxury brands. This article from Footwear News misses the real root although their discussion on the speed of which customers can now purchase items from the fashion shows is definitely a major problem that should be given its own topic of dialogue.
The CEO also discusses omnichannel and the new mediums of purchasing goods as an issue.
A deviation, Dillard’s stock is sliding. JC Penny is continuing to struggle. Sears will soon be a dead company. All of these stores have one thing in common, they are located in malls. The discussion on the viability of malls has been taking place, and although Footlocker thinks things are okay, http://www.businessinsider.com/foot-locker-ceo-says-malls-arent-dying-2016-8, the outlet phenomenon is also hindering the big box anchor stores.
Even with all of these things obvious as the reason why stores like Neiman Marcus are sliding, the one thing that tends to be overlooked is disposable spending. Disposable income is now being controlled by technology. All of the big anchor stores are all failing because their sales channels are not very good. They have not found a way to reach the customer that has disposable income and when they do reach that customer, the customer has already bought a new phone. Luxury brands and anchor stores should take the ‘Blame Obama’ tag and begin saying, ‘Blame Apple’. These stores are dying because of their lack of tech, and because of tech.