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, fashionconscious 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 Avenue
New 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”
Napa
Gaufre
Bowler
Faille Dress
$3,950
$2,520
Advanced Marine
Biology Cream
London
Blue
Topaz
"Jude"
Ring
$175
$2,360
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
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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
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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
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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/bus/industrie
s/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