Ladies who lunch love to shop at Bergdorf Goodman, a Fifth Avenue emporium of luxury goods. Bergdorf sells high-end women's apparel, handbags, precious and designer jewelry, makeup, perfume, shoes, and tableware, as well as men's accessories, by designer labels such as Chloe, Giorgio Armani, and Marc Jacobs. Owned by upscale department store operator Neiman Marcus, Bergdorf Goodman operates two opulent stores across from each other on 58th Street in Manhattan, that ring up about 14% of Neiman's total revenue. The smaller store, which opened in 1991, is devoted exclusively to men. The elite retailer also sells via a catalog and a website. Bergdorf Goodman has been doing business at its prime location since 1901.
While limited, Bergdorf Goodman's retail footprint covers some of the most expensive and exclusive real estate on the planet: 58th Street and Fifth Avenue.
Sales and Marketing
The luxury retailer takes an omni-channel approach to marketing, including traditional print media, and in-store and online events. Bergdorf Goodman's social media platforms include blogs, Twitter feeds, and Facebook pages. It also publishes Bergdorf Goodman Magazine and specific designer mailers.
The deep recession in the US and consequent plunge in demand for luxury goods hurt sales at both Bergdorf Goodman and its parent Neiman Marcus. But after a couple of lean years, luxury sales have rebounded sharply. In fiscal 2013 (ended July) parent Neiman's sales climbed 7% versus prior year, and the previous annual sales comparison was even better. Profits have rebounded sharply as well: swinging from a loss in fiscal 2009 to about $163 million in net income in fiscal 2013.
In May 2012 Bergdorf Goodman got a new leader: President Joshua Schulman. Schulman, a retail veteran who helped run Jimmy Choo, Kenneth Cole New York, and Gap Inc. reports to James Gold, CEO of Neiman Marcus's Specialty Retail Stores segment. In October 2010 Gold, then president and CEO of Bergdorf, added the newly-created title of president and CEO of Neiman Marcus's Specialty Retail Stores segment, which consists primarily of Neiman Marcus and Bergdorf Goodman stores. The Specialty Retail Stores segment accounts for 80% of Neiman's fiscal 2012 sales. Gold's expanded role demonstrates the closer cooperation between the New York business and Dallas-based Neiman Marcus. For years, Neiman took a laissez-faire approach to dealing with its Fifth Avenue counterpart. However, in mid-2009 it combined Bergdorf's fashion office with its own in in a bid to cut costs as sales plunged. Hard feelings over consolidation (and increased responsibilities for some Bergdorf managers) led to the departure of Bergdorf's men's fashion director and turmoil in the ranks.
Bergdorf Goodman's parent company, Neiman Marcus, was taken private in October 2013 by Ares Management and Canada Pension Plan Investment Board in a deal valued at $6 billion.