NEW YORK — Neiman Marcus, which operates 37 full-price stores, has pretty much tapped traditional affluent communities in the U.S. But the luxury retailer isn't looking for wealth in such predictable places as major metropolitan hubs and historically monied enclaves.
"There's so much wealth in small towns and villages," said Burton Tansky, president and chief executive officer of Neiman Marcus Group, at Tuesday's "Retail/Apparel Landscape — 2010 and Beyond" conference organized by Emanuel Weintraub Associates here. "We're evaluating smaller markets and seeking out sites where the well-off are clustered. We're opening stores where we never would have 10 years ago."
One such place is Charlotte, N.C. Tansky also said the company will expand its presence in South Florida, where it already has seven stores and he said there was opportunity for another three or four. "Florida could be a $1 billion state for us," he said.
Tansky declined to discuss locations, but retail experts said Naples and Sarasota would be good bets and the company could open another store in Miami, possibly at the Aventura Mall.
Neiman's core Baby Boomer customers are at the height of their earning and spending power. But Tansky has his eye on another group: the children of Boomers, who are 25 to 30 years old and have an annual income of about $75,000. "We're developing a relationship with these customers," he said, noting their spending on women's contemporary apparel, handbags and shoes is growing.
Neiman's online business continues to expand. More than 50 percent of online sales now come from outside the chain's trading area, an indication there's an appetite for luxury goods in far-flung places. Neiman's is building its e-commerce business by partnering with several key vendors to create co-branded Web sites, which Tansky calls "sitelets." Consumers enter the sites through the vendor's portal. When they place an order, Neiman's takes over, using its order-taking and fulfillment capabilities.
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