From its humble beginnings in Dallas to its current status as a luxury retail titan, Neiman Marcus is a distinguished pillar in the retail sector. Established in 1907 in Dallas, Texas, the store has evolved from a single, high-end retail outlet to a nationwide luxury retailer known for its exceptional merchandise and customer service. This evolution reflects decades of strategic growth, innovative milestones, and ownership transformations.
In recent developments, Hudson’s Bay Company (HBC) acquired Neiman Marcus for $2.65 billion in 2024, with Amazon holding a minority stake, marking a new chapter in the store’s illustrious history. In this timeline, we will explore the store's inception to its latest ownership, the key milestones, and the impactful events that have shaped it into the iconic institution it is today.
Early Beginnings
- 1907: Foundation in Dallas, Texas Neiman Marcus was established on September 10, 1907, in Dallas by Herbert Marcus, his sister Carrie Marcus Neiman, and her husband Abraham Lincoln Neiman.
- With an initial investment of $25,000, the founders chose retail over the then-unknown Coca-Cola company, a decision that humorously was later described as "founded on bad business judgment" by early CEO Peb Atera.
- The store's lavish decor and high-quality merchandise were a hit among oil-wealthy Texans, making the venture instantly successful despite the Panic of 1907.
Growth and Early Challenges
- 1914: Devastation and Resilience A fire in 1914 destroyed the original store, yet a temporary store was opened within 17 days, and a new, permanent location was unveiled by the end of the year at Main and Ervay Streets.
- The new location expanded to include accessories, lingerie, and children's clothing, reaching $700,000 in sales with a profit of $40,000 in its first year.
Innovative Milestones
- 1927: Pioneering Fashion Shows Neiman Marcus launched the first weekly retail fashion show in the United States.
- The store’s elaborate 1936 fashion show, celebrating Texas's centennial, earned high praise from Edna Woolman Chase, the then-editor of Vogue.
- 1950s-1960s: Expansion and Artistic Integration In the early 1950s, a new $1.6 million store in Preston Center, inspired by Southwestern Indian art, opened.
- This era was marked by portrait studios featuring notable figures and innovative marketing campaigns, such as using Paul Gauguin’s paintings to influence fabric colors.
- Introducing the famous Christmas Book with extravagant His-and-Hers gifts and the Fortnight cultural presentation helped cement Neiman Marcus's reputation for luxury and sophistication.
Modern Expansion
- 1970s-1990s: Nationwide Growth The store expanded beyond Texas, opening locations in cities like Beverly Hills, Chicago, San Francisco, and the first store outside Texas in Bal Harbour, Florida, in 1971.
- The 1980s and 1990s saw continued expansion, including acquiring Bergdorf Goodman in 1987 and establishing a concept store in the 1990s.
Ownership Transitions
- 1987-2013: Changing Hands Neiman Marcus navigated several ownership changes from being spun off from Carter Hawley Hale Stores to a public listing.
- In 2005, it sold itself to private equity firms Texas Pacific Group and Warburg Pincus under a leveraged buyout.
- 2013 the company was sold to Ares Management and the Canada Pension Plan Investment Board for $6 billion.
Recent Developments
- 2020: Bankruptcy and Recovery Neiman Marcus filed for bankruptcy protection in May 2020 during the COVID-19 pandemic but emerged in September of the same year.
- Despite the challenges, the company continued to innovate, acquiring a minority stake in the online resale platform Fashionphile in 2019.
Hudson's Bay Acquisition
- 2024: New Ownership HBC, the parent company of Saks Fifth Avenue, announced the acquisition of Neiman Marcus for $2.65 billion in 2024, with Amazon holding a minority stake.
