Neiman Marcus 2013 Annual Report Download - page 6

Table of Contents
Leading portfolio of established and emerging luxury and fashion brands
As a leading fashion authority among luxury consumers, we carry many of the world’s most exclusive designers. We have highly skilled
merchandising teams for each of our brands, which enable us to optimize each brand and offer curated assortments that are customized at the store level based
on our extensive local market knowledge and online data analytics. As a result, we offer a broad selection of highly differentiated and distinctive luxury
merchandise to fully address our customers’ lifestyle needs. We have long-standing, 25+ year relationships with most of our largest vendors. In addition, we
also have a long history of identifying, developing and nurturing emerging design talent. We believe that these relationships with both established and
emerging designers allow us to obtain a better brand selection, including in some instances merchandise and brands that are exclusive to us, and superior
allocation of merchandise, providing our customers with a distinctive shopping experience.
Customer service led organization fosters strong customer relationships and loyalty and drives sales
We maintain superior customer service initiatives that enable us to engage with our customers and cultivate long-term relationships and customer
loyalty to increase sales.
InCircle® Loyalty Program: We believe we were among the first retailers to adopt a customer loyalty program, and we believe that our InCircle
loyalty program helps drive incremental sales as our InCircle members visit our stores more frequently and spend significantly more than other customers.
Approximately 40% of our total revenues in fiscal year 2014 were generated by 147,000 InCircle members who achieved reward status. Our InCircle program
focuses on our most active customers to drive engagement, resulting in an increased number of transactions and sales by offering attractive member benefits
such as private in-store events, special exclusive offers, as well as the ability to earn gift cards.
Our Sales Associates: Our sales associates provide exceptional and differentiated customer service, instilling and reinforcing our culture of
relationship-based service recognized by our customers. We have empowered our sales force with technology by rolling out to them over 8,000 smart phones
and tablets, which further enhances customer communication and engagement. Our emphasis is on building long-term customer relationships rather than
transactional-based results, which has led to consistently strong customer service scores.
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A description of the components of our integrated, omni-channel retailing model follows:
Specialty Retail Stores. Our specialty retail store operations (Specialty Retail Stores) consist primarily of our 41 Neiman Marcus stores and two
Bergdorf Goodman stores. Specialty Retail Stores accounted for 76.3% of our total revenues in fiscal year 2014, 77.8% of our total revenues in fiscal year
2013 and 79.8% of our total revenues in fiscal year 2012.
• Neiman Marcus Stores. Neiman Marcus stores offer distinctive luxury merchandise, including women’s couture and designer apparel,
contemporary sportswear, handbags, fashion accessories, shoes, cosmetics, men’s clothing and furnishings, precious and designer jewelry,
decorative home accessories, fine china, crystal and silver, children’s apparel and gift items. We locate our Neiman Marcus stores at carefully
selected venues in major metropolitan markets across the United States. We design our stores to provide a feeling of residential luxury by
blending art and architectural details from the communities in which our stores are located.
• Bergdorf Goodman Stores. Bergdorf Goodman is a premier luxury retailer in New York City well known for its high luxury merchandise,
sumptuous shopping environment and landmark Fifth Avenue locations. Like Neiman Marcus, Bergdorf Goodman features high-end apparel,
handbags, fashion accessories, shoes, precious and designer jewelry, cosmetics, gift items and decorative home accessories.
• Small Format Stores. Also included in our Specialty Retail Stores segment are small format stores we operate under the Last Call and CUSP
brands. We operate 38 off-price stores under the Last Call brand. These stores offer off-price goods purchased directly for resale as well as end-
of-season clearance goods from our Neiman Marcus stores, Bergdorf Goodman stores and online operation. In addition, we operate six stores
under the CUSP name. CUSP is a smaller store format (6,000 to 11,000 square feet) that targets a younger, fashion savvy customer with a
contemporary point of view. Sales from our Neiman Marcus Last Call and CUSP stores account for less than 10% of our total revenues.
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