Neiman Marcus Assortment changes and potential impact

A Wall Street Journal article (15 February 2011) describes the past strategy at Neiman Marcus and changes to respond to the 30 % sales drop in December 2008.   The article describes that 50 % of its sales were generated by 100,000 customers who spent more than $ 12,000 a year.  But in its new strategy, the retailer plans to add to its customer base by “expanding its assortment at the entry-level end, expanding its off-price stores and introducing limited-time online sales”.  Will will such an adjustment in variety, and its consequent focus on two different customer bases, impact the retailers supply chain ? Would it have been better to split the store into separate entities (like the Gap and its Old Navy option) ?

About aviyer2010

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