The fifth sign of the Apocalypse: Neiman-Marcus goes discount
, suffering from plummeting profits over the last year, has announced a major change in its marketing approach. Rather than positioning itself as a price-is-no-object retailer, it will now begin offering lower-priced goods and promotional marketing events. By doing so, the company hopes to attract some of its cash-strapped former customers who currently are flocking to discount retailers.
Neiman-Marcus isn't the only top-tier store that has recently decided to take this approach. As the past few months have demonstrated, the main problem with über expensive retail is that its key assumption is flawed. Many companies have spent years under the misapprehension that a department store can stay in business by solely appealing to obscenely wealthy customers.
