April 28, 2006
Neiman Marcus CEO Discusses Success of Luxury and the
Luxury of Success
by Laura Griffin
In an industry where fashion styles change more often than the
seasons, it’s imperative that retail stores create a stable shopping
experience for their customers.
“Fashion is an industry of change, and retailing is an industry of
consistency,” said Karen Katz, president and CEO of Neiman Marcus
Stores. “Our customers want quality, value and luxury, and we always
provide them with it.”
Katz, who spoke April 20 as part of the VIP Distinguished Speaker
Series, currently oversees the strategic direction, merchandising,
operations, creative services and expansion of the 36 Neiman Marcus
Stores and the 18 Last Call Clearance Centers located in the most
affluent markets in the United States.
Katz expressed excitement about the company’s plans for the near
future. “We’re beginning to open stores in emerging smaller markets
like Austin,” she said. In addition, Neiman Marcus is preparing to
launch small and modern luxury boutiques designed for its younger
affluent customers.
Working for an up-scale brand, Katz explained, can be both exciting
and challenging. “Our customer base is very small—only 2 percent of
the United States population—but it's a strong base,” she said.
“Neiman Marcus has a history of success and 100 years of steady
business.”
Multi-channel communications with the customer is something that
Neiman Marcus values deeply, and Katz views the company’s in-house
magazines, catalogs and its ever-expanding Web store as key
communication tools.
Customer service, however, is the most important channel of
communication, she said. According to Katz, each Neiman Marcus
employee receives hundreds of hours of customer service training
during their first year working at the company, and there is an extensive
rewards program for employees who have outstanding sales.
“Neiman Marcus spends a lot of time and resources on creating the
perfect shopping experience for our customers,” she said. “Our
goal is to treat everyone who comes in the store with attentiveness,
be polite, and most importantly welcome them into our environment.” This
includes everything from the merchandise the company carries, to the
music played in the store, to the decor. Katz noted that Neiman
Marcus employs a full-time curator to choose the art hung in the
stores.
Katz studied political science as an undergraduate at The University
of Texas at Austin, and later received her MBA from the University
of Houston. She has also attended graduate executive education
classes at the Harvard Business School.
After joining the Neiman Marcus company in 1985 as a merchandise
manager in Houston, Texas, she was steadily promoted to her current
position. Prior to joining Neiman Marcus, she worked as a buyer for
Foley’s Department Store.
At the end of her presentation, Katz described the many places she had
been able to visit in the past couple of
months, including dozens of shows during Fashion Week in New York
City followed by more fashion shows in Milan and Paris a week later. “Don’t I
have the best job?” she asked.
Notable Soundbites
On how products make it on the shelves:
“There are lots of vendors that we buy from every
season, but they present a new product to us four or five times
a year. On any given week, I get about five young entrepreneurs
that have a product they think would sell at Neiman Marcus and
we try to be very open because you never know when what they are
bringing you could be the next Gucci or the next Prada.”
On her management style:
“I tend to be very open and approachable. I’ve been at
Neiman Marcus for 21 years so everyone knows me by Karen and I
prefer it that way. But beyond that, you don’t get to these
kinds of positions unless you have a clear position of what’s in
front you of, and I appreciate the team and what they do.”
On her life/work balance:
“The best decision I’ve ever made was to stop traveling when my
son was two years old and have a job that allowed me to stay in
town until he got older. That way I could find a good balance
until he could understand why his mom traveled as much as I
did.”
On her favorite brand:
“Target is by far my favorite brand. I think they do
an amazing job with their merchandising, and there’s nobody who
markets their brand as well as Target does.”
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