Neiman Marcus Invests $85 Million in Supply Chain Upgrades

Neiman Marcus’s bankruptcy appears to have been as successful as a bankruptcy can be. After erasing more than $4 billion in debt, the luxury retailer is now investing $85 million in immediate changes to its supply chain and technology ops.

The details: Neiman’s overhaul will largely affect warehouse and order management systems and fulfillment centers, including its Pinnacle Park distribution center in Dallas, Texas, home of Neiman HQ. It also plans to group “technology, digital products, and advanced analytics” under one role.

C-suite upgrades: Part of Neiman’s digital shift includes rebuilding its executive team with e-comm experts.

• Bob Kupbens, a former eBay and Apple executive, will join as EVP, chief product and technology officer, starting Feb. 1.
• Kupbens will partner with other Neiman and Bergdorf Goodman executives to “develop new digital products and capabilities that enhance store, online, and omnichannel experiences” for both brands, per Neiman's press release.
• Chief Digital Officer Katie Mullen, who helped pilot a virtual styling service as chief innovation officer, will depart in the summer, Neiman told Retail Dive.

Another link in the (supply) chain

While Neiman’s plans don’t spell out specific automation investments, they’re the No. 1 overhaul priority across major retailers.

• Walmart is introducing robots to several of its stores to help with the pickup and delivery of frozen and refrigerated foods and smaller general merchandise items from warehouses or local fulfillment centers.
• American Eagle Outfitters last year installed 26 autonomous picking bots from Kindred AI in its US distribution centers.

Zoom out: The majority of robots shipped to North America in 2020 didn’t go to the automotive industry, but to retailers clamoring for distribution efficiency. Leading the charge: consumer goods and pharmaceutical companies.

My takeaway: Neiman has touted its e-commerce capabilities, reporting 30+% of its annual revenue coming from online sales. But its bankruptcy demonstrated that tech advancements are necessary at the consumer level and within the supply chain. If Neiman can find success on both these fronts, it can fortify its place in the modern retail landscape.