Neiman Marcus Group’s making a bigger push to accelerate growth through investments in supply chain and advanced analytics.
The luxury retailer said on Wednesday that it plans to invest $85 million for its systems and fulfillment centers to support digital and fuel growth. The company is implementing new order management and warehouse systems, on top of investments in the Pinnacle Park distribution facility. “There are multi-year improvements that begin immediately,” it said.
“We are transforming [our] core operating capability to support our growth as the luxury destination of choice for customers,” said Willis Weirich, executive vice president, group operations & chief supply chain officer. “As the demand for luxury products continues to grow, so does our supply chain network and infrastructure. These investments ensure that [we] can quickly deliver the luxury products our customers want.”
Neiman said that the strategic investment further strengthen its business and fosters new ways of working, allowing it to devote resources to innovative technology and data analytics and redeploy resources to enhance relationships with customer and brand partners to strengthen the digital ecosystem.
Separately, the company is also grouping technology, digital products and advanced analytics under one leader, and will deploy capital to “enhance the customer journey.” Bob Kupbens will join the company on Feb. 1 as executive vice president and chief product and technology officer, it said. In his role, reporting to CEO Geoffroy van Raemdonck, he will accelerate the ramp up of retailer’s advanced analytics capabilities, scale personalization of customer experience to a broader set of customers, and curate the personalized assortments. He will also work in partnership with David Groubert, president and chief customer officer for Neiman Marcus, Darcy Penick, president of Bergdorf Goodman and Lana Todorovich, president and chief merchandising officer for Neiman Marcus, to develop new digital products and capabilities that enhance store, online and omnichannel experiences at both brands.
Van Raemdonck said the investments will accelerate the luxury firm’s transformation and afford a “unique competitive advantage and create shareholder value.”