Neiman Marcus Reorganizes, Cuts 225 Jobs
Neiman Marcus said Wednesday that a reorganization of its business to reflect changing customer shopping habits will include a reduction of its workforce. The Dallas-based retailer also said it's assessing its Last Call outlet division. The Dallas-based retailer, struggling with almost $5 billion in leveraged buyout debt, said it will cut 225 employees. Neiman Marcus has reported losses of $578 million in the last four quarters. In its third fiscal quarter ended April 29, Neiman Marcus reported a net loss of $24.9 million vs. a profit of $3.8 million in the same period a year ago. Total sales fell 4.9 percent to $1.11 billion.
Total Retail's Take: The upscale department store has struggled with declining in-store traffic as well as mounting debt, the result of being being bought and sold within 10 years. Like so many other traditional brick-and-mortar retailers, Neiman Marcus has been hurt by increased online competition, which only figures to become more of an issue as Amazon.com invests more into growing its fashion business. Neiman Marcus hasn't chosen to close stores as of yet, which many of its competitors have done to save on costs, but that may be the next step in the company's reorganization. An increased focus on digital is the plan for now, which seems to be the solution for all retailers these days.