You will be redirected back to your article in seconds
Skip to main content

Industry Players Optimistic about Neiman Marcus Sale

Industry executives are optimistic about the Neiman Marcus sale and what it will mean for the department store despite concerns that it’s the second luxury retailer to be sold in recent months as Saks Inc went to Hudson’s Bay Co. in July.

Ares Management LLC and Canada Pension Plan Investment Board (CPPIB) purchased the Neiman Marcus Group for $6 billion, Ares announced Monday. The Dallas-based retailer has forty-one namesake department stores plus Bergdorf Goodman and thirty-six Last Call outlet stores.

David Kaplan, Senior Partner and Co-Head of the Private Equity Group of Ares said in a news release that his company shares a common vision with CPPIB’s management team.

“Together,” he said, “We plan on investing meaningful capital into the business to ensure Neiman’s long-term position as the unparalleled leader in luxury retail.”

CPPIB’s Senior Vice-President, Private Investments, André Bourbonnais said, “We believe the Company’s strong market position, combined with an expected increase in U.S. luxury goods spending, provide attractive opportunities for future growth.”

Sales of luxury goods slowed with the financial crisis but the company has returned to its pre-recession sales success reporting $3.5 billion in revenues for the first three quarters of 2013.

Mark Cohen, a marketing professor at Columbia Business School and former CEO of Sears Canada told USA Today that he predicts luxury brands will “heartily support” Neiman and its Bergdorf Goodman stores, “while remaining wary of where Saks is headed and who will lead it.”

There is still space in the market for luxury department stores like Neiman’s and Karen Katz, President and Chief Executive Officer of Neiman Marcus Group, said the new owners are dedicated to learning the business and pursuing its growth.

“I have great confidence that our customers, associates and vendor partners will share my enthusiasm that our new investors will help us pursue a business dedicated to luxury and fashion, attentive service and innovative marketing,” she said in a statement.