Wow! Geoffroy van Raemdonck, the CEO of luxury department store chain Neiman Marcus is getting blasted by his employees — who are calling him out for being “snobbish” and alienating the company’s less wealthy customers by focusing more on their clients with the big bucks to spend.
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Neiman Marcus CEO Blasted By Employees For Being ‘Snobbish’ & No Longer Catering To Less-Wealthy Customers
Apparently, von Raemdonck recently sat down with ‘Fortune’ last week and dished on data within the company. The CEO claimed that just two percent of his company’s customers help deliver forty percent of its earnings.
Because of that, it is now reported that Neiman Marcus has plans to specifically cater to and focus more on better treating those shoppers who are willing drop it like it’s hot with ease — thus, spending less time courting the remaining clients who don’t really drop the pretty pennies.
van Raemdonck explained, “Many customers shop at Neiman Marcus 25 times a year and spend $27,000. I see much more risk in having a one-time transaction where I don’t know if you will ever come back.”
The CEO also added that the Dallas-based department store will no longer sell “everywhere on the price spectrum, from clearance to high-end jewelry.” He claimed that by the company shifting their focus onto the more affluent clientele, they will avoid the “churn and the price is no longer the main consideration.”
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While this shocking new plan is catching backlash, this isn’t the first time van Raemdonck did something this big. During his five-year tenure at the luxury department store, he made an even bigger decision to shut down the company’s 22 Last Call discount stores back in 2020.
Though some of the stores still remain open, speaking on the move, van Raemdonck explained why he chose to close the doors on some of the stores.
In his ‘Fortune‘ interview, he said, “We looked at the numbers and couldn’t see customers who shopped at Last Call and then became Neiman Marcus customers.”
As a result of the company’s new “snobbish” plans for the less wealthy customers, some of the top sales rep at the luxury department store were left a little uneasy and blasted their boss.
One anonymous worker said that a customer who had spent $5,000 at the store over the past year brought up the CEO’s recent interview this past weekend and told them how they “felt personally insulted.”
The worried staffer added, “I’m scrambling now.” They added, “What about the future millionaires? We work so hard to create a welcoming culture at our store for everyone and now we have our CEO excluding some that come in. He’s actually hurting us and our future.”
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