There is a unique spending trend coursing through the retail world. Consumers have tightened their wallets over the last few years as the economy fluctuates, making dollar and discount stores supremely popular. At the same time, they are not adverse to spending the money in quality pieces- hence high-end luxury stores have continued to see growth, while mid-level retailers such as the Florida Retailer, Gap and JC Penney have suffered. This post is brought to you by Newman Crane Florida Retail Insurance programs.
Now in a unique partnership, retailers are trying to achieve the best of both worlds. Neiman Marcus and Target have announced they are compiling a joint limited collection for the holiday season, according to the Wall Street Journal. The collection will feature various designers and products, ranging from Diane Von Furstenberg and Derek Lam, and covering multiple areas from fashion to stationery and sporting goods. Both chains will carry the same items at the same price and the labels will feature both the Target bulls-eye and Neiman Marcus logo.
It is an interesting partnership between the two companies, each with their own unique branding. Neiman Marcus is the epitome of high-end luxury, boasting some of the most exquisitely designed pieces and the largest array of couture collections in the retail world. They also have the reputation of exclusivity and snobbiness, a label that has hurt them and made them inaccessible to a broad range of younger customers
Target, on the other hand, has capitalized on a “cheap-chic” sensibility, partnering with various designers to create affordable, stylish collections that have been a huge hit. The benefits of the partnership are mutual. Target gets the continued exclusivity of designer lines in their store and can capitalize on the clout of the Neiman Marcus brand, while Neiman Marcus has the opportunity to broaden their audience, ease their exclusive reputation, and appeal to a wider demographic. Neiman Marcus also needs Target’s extensive supply chain to produce the goods in bulk.
As a Florida retail owner, what is your opinion of this new partnership? Will it be a success, or is it a mismatch between two companies who are just too different? We’d love to hear from you.
At Newman Crane, we have Florida retail insurance plans to protect your retail operation from a number of potential losses, including liability and property damage. Contact us today for more information about our Florida Retail Insurance programs.