Neiman Marcus 2013 Annual Report Download - page 5

Table of Contents
and Tom Ford. Luxury and fashion brands intentionally maintain limited distribution of their merchandise to maximize brand exclusivity and to facilitate the
sale of their goods at premium prices. Our omni-channel model offers our designers a distinctive distribution channel that adheres to their standards with
respect to brand image and customer service. As a result, we believe we are the largest worldwide partner to many luxury brands. Additionally, we often work
with less mature brands that are emerging in the fashion and luxury industry. We have a long history of identifying, developing and nurturing these emerging
brands. This combination of established and new designers distinguishes our merchandise assortment and customer shopping experience.
We believe the following strengths differentiate us from our competitors.
One of the largest luxury, multi-branded, omni-channel retailers enabling us to reach the wealthiest consumers worldwide
We are one of the largest luxury, multi-branded, omni-channel fashion retailers in the world with what we believe to be two of the most globally
recognized and reputable luxury brands—Neiman Marcus and Bergdorf Goodman. With a history of over 100 years in retailing, our iconic brands are
recognized as synonymous with fashion, luxury and style. We have an extensive omni-channel platform across our brands. Our significant investments in our
omni-channel model enable our customers to shop “anytime, anywhere, any device.” Our stores are located in prime locations in metropolitan markets,
including U.S. gateway cities that draw customers from around the world such as New York City, Miami, Los Angeles, San Francisco and Las Vegas. Our
online operation enables us to reach the world’s wealthiest consumers, which is critical to addressing the needs of our evolving global, fashion-conscious
luxury consumers. We believe that our size, our reach, our reputation and our long-term relationships with designers allow us to obtain a better brand
selection and a higher allocation of top merchandise.
Highly productive store base offering our customers a differentiated and personalized shopping experience
We have a highly profitable and productive store base in many of the country’s most prestigious locations. The combined store productivity of our
Neiman Marcus and Bergdorf Goodman stores was $579 per foot for fiscal year 2014. Our shopping experience is highly differentiated. We offer our
customers a curated selection of merchandise tailored to local aesthetics. Each of our stores is individually designed by market and provides a sumptuous
shopping environment with high-end finishings, artwork and, in most cases, in-store restaurants. When combined with our strong selling culture, our stores
provide our customers with a luxurious and enjoyable shopping experience.
Through Bergdorf Goodman, we believe we are the premier luxury multi-branded retailer in New York City, providing our customers with a
shopping experience that we believe to be unlike any other. Located in landmark Fifth Avenue locations near Central Park and The Plaza Hotel, we believe
Bergdorf Goodman represents an iconic shopping destination in Manhattan for both U.S. and international customers. The stores offer ultra-luxury
merchandise and provide a desirable showcase for both established and emerging fashion brands.
Exceptional real estate locations with favorable terms for full-line stores
We believe our full-line stores have the highest quality locations across the United States, a footprint that would be challenging to replicate. Our
full-line stores are situated among the highest-end luxury boutiques and upscale retailers in the most prestigious shopping centers, malls and other
metropolitan shopping destinations that are frequented by the wealthiest of customers. We believe that our brand, reputation and strength in the luxury
market have allowed us to obtain our premier locations on favorable terms. Our real estate strategy with respect to our full-line stores allows us to obtain
favorable pricing, resulting in an attractive rent structure.
Leader in luxury online retailing with the largest assortment of luxury brands
We believe that we were one of the first major luxury fashion online retailers in the world, which positions us well as a leader in this evolving
channel. Our online operation currently accounts for annual revenues of over $1.1 billion, which we believe makes it one of the largest luxury, multi-branded
online platforms. This represents a compounded annual growth rate of approximately 15% since fiscal year 2011. We believe that our scale and success allow
us to provide our customers with an assortment of luxury merchandise online that is unmatched by other U.S. luxury and premium multi-branded retailers.
Furthermore, our online data analytics capabilities allow us to tailor our marketing and provide our customers with a highly personalized shopping
experience. At approximately 24% of our total revenues in fiscal year 2014, our online retailing operation represents a critical component of our integrated
omni-channel strategy.
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