The Neiman Marcus Group is selling two distributions centers, in Longview and Las Colinas, Texas, and expects to close the deals by the end of this month.
The Dallas-based luxury retailer did not disclose the buyers or any transaction terms.
While the deals should be finalized this month, Neiman’s will operate the Longview facility through the 2021 holiday season and Las Colinas will stay open into fall 2022, the company indicated in its announcement Thursday.
After Neiman’s stops utilizing those facilities, the company will be left with two distribution centers, in Pinnacle Park, Dallas and Pittston, Pa.
As reported in January, the Neiman Marcus Group intends to invest $85 million in supply chain innovation over the next two years, specifically in warehouse and order management systems, and increasing the size, speed, capacity and efficiency of its remaining distribution centers. “This represents a large undertaking for us, positioning us for growth. It’s a large-scale transformation,” Willis Weirich, NMG’s executive vice president, group operations and chief supply chain officer, told WWD on Thursday. “We are really investing in supply chain and are excited about where it will take the company.”
Neiman’s wants replenishments and deliveries to customers to be faster and to be more competitive by providing customers improved shopping experiences. The retailer wants to track merchandise more effectively.
The Pittston and Dallas centers are omnichannel facilities serving the Neiman Marcus and Bergdorf Goodman brick-and-mortar stores and online businesses. The restructuring of the supply chain will make the Neiman Marcus Group less Texas-centric, the company said.
In Pittston, which is in northeastern Pennsylvania, Neiman’s will relocate its 200,000-square-foot distribution center to a 500,000-square-foot facility in the same industrial park. The Dallas distribution center is 470,250 square feet.
Neiman’s said it anticipates that some of the associates affected by the future distribution center closings will be able to transfer to its remaining distribution centers or other roles. There will be a team retained in Longview to work remotely on logistics, Weirich said. Those not staying with the company will be eligible for severance and job placement assistance. The Longview facilities has 160 employees and Las Colinas has 421.
Coincidentally, Gap Inc. last month told WWD it would start building a $140 million 850,000-square-foot distribution center in Longview, Tex., which is expected to be fully operational by August 2022. However, Neiman’s sale of its distribution center in the same city has nothing to do with Gap.