Nicole Cecchini Carrie Fox Amanda Morneault

BA 495 Spring 2007

• Founded in 1907 by Herbert Marcus, his sister Carrie Marcus Neiman, and her husband Al Neiman.

• First store was opened in downtown Dallas, Texas, with the goal of providing fine ready-to-wear apparel and unsurpassed customer service.

• They turned a profit their first year in business.

• Mission Statement:– Our mission is to be the leading specialty

retailer of fine merchandise to discerning, fashion-conscious consumers from around the world. We will strive to exceed customer expectations for service, quality and value as we build upon our longstanding tradition of excellence.

• Target Market:– High-end fashion conscious consumers– Mainly women

• Located in 18 of the 50 states, with no locations in Oregon or Washington.

• Store Locations:– Arizona, California, Colorado, Florida,

Georgia, Hawaii, Illinois, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, North Carolina, Pennsylvania, Texas, Virginia, Washington D.C.

• Competitors

• Online Catalog• Items & Prices:

$4310

$425 $495$1095

History of Bergdorf Goodman

•Edwin Goodman worked for Herman Bergdorf in his tailoring business before buying the business from Bergdorf in 1906

•In 1914, Bergdorf became the first couturier to present ready-to-wear items, making the store a hot spot for premier French and American fashion

•In 1928, the store moved to its present location, the former site of the Cornelius Vanderbilt mansion

•In 1987, Bergdorf Goodman was united with Neiman Marcus and Neiman Marcus Direct to form the Neiman Marcus Group

•In 1990, the Men’s store opened for business directly across the street at 745 Fifth Avenue

•In 1999, the Beauty level opened below the main floor with 15,000 sq. feet containing eight spa rooms, skincare consultations and treatments, and Goodman’s café which serves lunch and afternoon tea.

•In the Fall of 2004, Bergdorf Goodman goes online at BergdorfGoodman.com

Location• Store Address:

754 Fifth AvenueNew York, NY 10019

• The Men’s store is located directly across the street on Fifth Avenue

• The main store includes 9 stories of luxurious goods and services

• BG’s merchandise can also be purchased through Bergdorf Goodman Direct- the catalog and through their website

• The stores 5th Avenue neighbors include Tiffany & Co., Louis Vuitton, and the Plaza Hotel

“We Carry the Best of the Best”

NapaGaufreBowler

$2,520

Advanced Marine Biology

Cream

$175

London Blue Topaz "Jude" Ring

$2,360

Faille Dress

$3,950

BG Designers*Many of these labels have their own separate collections within the retail space

“Neiman’s Richer Sister”Specialty services emphasize the upscale merchandise and

atmosphere that begets 5th Avenue. These services include:

• A 15,000 square foot full-service spa – Facials, Color Services, Eyebrow Design, Manicures, Make-up

Application and lessons, Updos• Extensive complimentary personal shopping services (by

appointment only) including– Bridal consultation– Fitting and tailoring– Assistance via the telephone or email– Gift selection – Separate personal shopping services for the Women’s and Men’s stores– Ability to reserve pieces from upcoming preview and trunk shows– Personalized or handmade clothing pieces

• Optical services– Includes prescription lenses, custom tinting and shading

“Neiman Marcus serves the country, while Bergdorf Goodman serves New York.” – Burt Tansky, Chief Executive

Neiman Marcus Group

Target Customer• Extremely affluent customer

looking for haute couture and exclusive designers: those that “seek the best”

• Primarily upscale female shoppers residing in or visiting the Manhattan area

• “Wives and daughters of captains of industry and Wallstreet rainmakers”

“There’s only one Bergdorf Goodman – and it deals only in the

swankiest”• Bergdorf Goodman enjoys 12% of

total sales for the Neiman Marcus group

• Sales experienced a 12.7% increase in 2006

• Annual sales average more than $1,500/ sq. ft.

• One of only 4 locations in the United States allowed to sell French luggage

• No pressure to expand- their positioning centers on its exclusivity

• No other retail establishment offers such a plush mix of merchandise under one roof

“It’s a Retreat For Our Clientele.”

• Bergdorf Goodman Competes With…– Specialty boutiques, Saks 5th Avenue,

Bloomingdales, Nordstrom, Barney’s

• BG could improve by…– Even better customer service (Nordstrom rated

higher on the Luxury Institute’s customer experience index)

– Knowing their customers better

• One good thing they’re doing…– 5F brand: appeals to the market of younger women– "We have plenty of 15-year-olds buying Prada.” –

Linda Fargo, Bergdorf's fashion director and senior vice president

• Created in 1971– Roger Horchow: unique decorating items from around

the world– Not affiliated with any brick and mortar store – catalog

only– First to use toll-free phone numbers for ordering– Acquired by The Nieman Marcus Group in 1988

• Under Nieman Marcus Direct • Goals

– Superior customer service– High-end, quality products– Unique, global products

• Locations – markets served– Anywhere…with an address or internet connection– www.horchow.com

• Products, pricing and other services– The Original Horchow collection

• Fine furniture– Home collection– Fine Linen– Horchow Garden– Kitchen and Gourmet

• Gourmet Food Service– Travel Service

• Private Jet Excursions• Luxury Private Yacht Charters

– Custom Swatch Service– Showrooms

• Arizona, California, Illinois, Minnesota, Texas

• Competition– Pottery Barn– Pier 1 Imports– Other industry competitors related to The Neiman Marcus Group

Peacock Shower Curtain $375 Liner$105

“Contessa” Armchair $1799

Cashmere Throw original $895 On sale for $715.90…20% OFF!

• Formed in 1987• Industry competition

– Bloomingdales– Nordstrom– Saks Fifth Avenue

• Sales (FY Begins in August)– 2005: $4.06B– 2006: $4.03B– 2007: 1st Qtr. $1.04B, 2nd Qtr. 1.290B

• Recent news– October 2006 Purchase of Kate Spade, LLC

$59M • Sold November 2006 to Liz Claiborne, Inc

for $121.5M– May 2005 Leveraged Buyout (LBO)

• Private equity firms Texas Pacific Group and Warburg Pincus

Bibliography• http://www.handbagdesigner101.com/images/img

_celebrity/19/HUGE_lindsay_lohan2.jpg• http://www.dallasnews.com/sharedcontent/dws/b

us/industries/retail/stories/031807dnbusbergdorf.3794ab0.html

• http://www.bergdorfgoodman.com/• http://www.neimanmarcus.com• http://www.horchow.com• http://finance.yahoo.com• http://www.theneimanmarcusgroup.com• http://www.google.com