Despite another round of sluggish sales, Neiman Marcus is looking to digital for a turnaround.
The struggling luxury goods retailer said today that it modestly narrowed its Q4 net losses to $366.3 million, from a net loss of $407.3 million in the prior year. Sales during the period totaled $1.12 billion, representing a decrease in comparable revenues 0.5 percent over the previous year.
Nevertheless, the company experienced growth in online sales.
As a result, the firm — which announced in September its plans to close 10 of its 38 Last Call outlet discount stores in order to focus on its higher-end locations — said it now plans to give greater attention to the digital side of its business.
The online-focused component — dubbed “Digital First” — will see the retailer attempt to “[anticipate] customers’ evolving behaviors and [engage] them more deeply to drive traffic online and in stores.”
While Neiman Marcus didn’t elaborate on the key elements of its new strategy, the retailer appears to be following in the same path of department stores such as Macy’s and Nordstrom, which have shifted resources to online and data analytics in a bid to navigate an increasingly digital retail landscape.
For fiscal year 2017, Neiman Marcus reported revenues of $4.71 billion, representing a decrease in comparable revenues of 5.2 percent. Full-year net losses widened to $531.8 million, compared with a net loss of $406.1 million in the prior year.
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