Neiman Marcus Is Eyeing the Sale of Iconic Retailer Bergdorf Goodman, According to a New Report It's been a rough year for the luxury retail market.
By Emily Rella
Another luxury retailer may soon be biting the dust as the New York Post reports that Neiman Marcus is drawing closer to selling the iconic New York City department store, Bergdorf Goodman.
Bergdorf Goodman has been in business on Manhattan's famous Fifth Avenue since 1901 before being acquired by the Neiman Marcus Group in 1987.
Neiman Marcus, which is based in Dallas, is coming off of an alarming Q3 2023 with a reported $124 million in earnings, a 25% decrease from the same time period last year, with a 9% year-over-year revenue decrease as well.
The retailer was forced to discount and put many items on sale and through promotions in order to keep up with the shifting retail market and the general consumer shift away from excess luxury goods.
"Gross margins are challenged due to the highly promotional environment and our own levels of excess owned inventory, which will be back in balance by the end of the fiscal year. This impact is being partially offset by strong cost management," a spokesperson for the luxury retailer told WWD at the time.
Poor performance coupled with rumblings of internal disagreements among the company's top investors has fueled the possible sale.
"There is a civil war going on between the ownership group," a source told the New York Post. "Neiman Marcus had a very bad year, and the minority shareholders have lost faith with the business plan and with management."
Selling Bergdorf from under the Neiman name would make sense fiscally, but could hinder the company's reputation and standing as a standout among other luxury retailers like Saks Fifth Avenue and Harrod's, according to the Post.
"The crown jewel will always find a buyer, but I think Neiman loses most of its value if Bergdorf goes away," an inside source told the Post. "Saks and Neiman are considered equals. The differentiator for Neiman has always been Bergdorf."
It is rumored that the top contenders for purchasing the company are Harrod's and Selfridges (London) and Galeries Lafayette (Paris).
Neiman Marcus did not immediately return Entrepreneur's request for comment.
