Neiman Marcus Takes On Amazon In $100 Million Omni-channel Project
By Anna Rose Welch, Editorial & Community Director, Advancing RNA
New strategy will reinforce company’s image as innovator and affect customers in a powerful way
Over the next two years, Neiman Marcus Group plans to invest $100 million in a new omni-channel project that will launch a ship-to-store delivery option and a new mobile app. The company is making these enhancements to better compete with larger online retailers like Amazon and brick-and-mortar chains that already offer ship-from-store and mobile initiatives. The launch of this new omni-channel strategy also has been timed with the $6 billion sale of the company to Los Angeles-based Ares Management and the Canada Pension Plan Investment Board. The sale is expected to close on Nov 4.
Since 2011, Neiman Marcus has focused on creating a seamless relationship between in-store and online shopping experiences, according to a Luxury Daily article from October 2011. CEO Karen Katz said omni-channel improvements were necessary because the luxury retailer has the reputation of being an innovator. The store holds the record for being the first store to offer a customer loyalty program and was one of the first luxury retailers to start selling products online. Over the past few years, Neiman Marcus has worked to enhance its online presence through Facebook, Twitter, blogs, and online events.
This new omni-channel initiative couldn’t come at a better time, considering some of the latest improvements Amazon — renamed “the 800-pound gorilla” by Jim Gold, Neiman Marcus’ president of specialty retail — has been making to expand its online presence. For example, this past week that 800-pound gorilla grew even larger with the emergence of its new “Login and Pay with Amazon” service, enabling guests on partner sites to login and complete orders using their Amazon accounts. Neiman Marcus’ new initiative will enable the store to drive sales across all channels — in store, online, and mobile. However, like all important improvements, this process will take some time to implement. The store plans to begin raising funds for this project during the 2014 fiscal year, gearing up for implementation in 2016.
The company did not release any details about the new app being designed except that it will enable customers to interact with the store “in a powerful way.” However, Gold has announced that following the launch of the ship-from-store initiative, the store will be expanding its inventory.
Of the changes, Gold claims that this project is, “the most challenging thing we’ve had to do. The way we are able to put products in front of customers — it’s a new day.”