Neiman Marcus 2013 Annual Report Download - page 9

Table of Contents
Historically, our customers holding a proprietary credit card have tended to shop more frequently and have a higher level of spending than
customers paying with cash or third party credit cards. In fiscal years 2014 and 2013, approximately 40% of our revenues were transacted through our
proprietary credit cards.
We utilize data captured through our proprietary credit card program in connection with promotional events and customer relationship programs to
target specific customers based upon their past spending patterns for certain brands, merchandise categories and store locations.
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Our merchandising functions are responsible for the determination of the merchandise assortment and quantities to be purchased for each of our
brands and, in the case of Neiman Marcus and Last Call stores, for the allocation of merchandise to each store. We currently have approximately
400 merchandise buyers and merchandise planners.
Effective April 2014, we merged the merchant and planning teams previously responsible for our Neiman Marcus stores and Neiman Marcus website.
The new combined omni-channel merchandising team is now responsible for inventory procurement for both channels. The integration of the merchandising
responsibilities for our Neiman Marcus brand represents a significant enhancement of our omni-channel capabilities and elevates our ability to deliver a
superior shopping experience to our customers.
We carry a broad selection of highly differentiated and distinctive luxury merchandise carefully curated by our highly-skilled merchandising
groups. We believe our merchandising experience and in-depth knowledge of our customers and the markets within which we operate allow us to select an
appropriate merchandise assortment that is tailored to fully address our customers’ lifestyle needs.
Our percentages of revenues by major merchandise category are as follows:
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
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













Women’s Apparel
31%
31%
34%
Women’s Shoes, Handbags and Accessories
28
27
25
Men’s Apparel and Shoes
12
12
12
Designer and Precious Jewelry
11
12
11
Cosmetics and Fragrances
11
11
11
Home Furnishings and Décor
5
5
6
Other
2
2
1
100%
100%
100%
Substantially all of our merchandise is delivered to us by our vendors as finished goods and is manufactured in numerous locations, including
Europe and the United States and, to a lesser extent, China, Mexico and South America.
Our major merchandise categories are as follows:
Women’s Apparel: Women’s apparel consists of dresses, eveningwear, suits, coats and sportswear separates—skirts, pants, blouses, jackets and
sweaters. We work with women’s apparel vendors to present the merchandise and highlight the best of the vendor’s product. Our primary women’s apparel
vendors include Chanel, Gucci, Prada, Giorgio Armani, St. John, Akris and Brunello Cucinelli.
Women’s Shoes, Handbags and Accessories: Women’s accessories include belts, gloves, scarves, hats and sunglasses and complement our shoes and
handbags assortments. Our primary vendors in this category include Christian Louboutin, Chanel, Manolo Blahnik, Prada, Saint Laurent, Jimmy Choo and
Tory Burch in ladies shoes and Chanel, Prada, Gucci, Bottega Veneta, Balenciaga and Celine in handbags.
Men’s Apparel and Shoes: Men’s apparel and shoes include suits, dress shirts and ties, sport coats, jackets, trousers, casual wear and eveningwear as
well as business and casual footwear. Bergdorf Goodman has a fully dedicated men’s store on
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