Neiman Marcus to Open NY Flagship? Report

In Reports, What's New, Industry News by Jeff Prine

Rendering of South Tower complex, part of a $20 billion development at the Hudson Yards, Manhattan

Rendering of South Tower complex, part of a $20 billion development at the Hudson Yards, Manhattan

New York—While Neiman Marcus and Related Cos., developer of the Hudson Yards,’ are remaining mum, reports are circulating that the Dallas-based luxury retailer is in the final throes of a deal to open its first Manhattan flagship at the Hudson Yards.

According to a report in The New York Post, Related is hoping to entice Neiman Marcus into its 1-million-square-foot retail complex as the anchor store. The huge development, which is being building in the West 30s below the Javits Center, is slated to open in 2018.

Neither Neiman Marcus, nor Related commented on the report.

Interestingly, in an interview earlier this year, Neiman CEO Karen Katz said the company took a “slow and steady” approach to expansion, adding that Neiman Marcus prefers to have developers seek it out with offers of prime locations paired with free real estate.

Supposedly the Hudson Yards deal is for a 200,000-square-foot-multilevel store, its first in New York City. Previously there has been a hesitation to open in Manhattan given that it would compete with Bergdorf Goodman, another luxury retailer owned by Neiman Marcus.

“They never wanted to come and have their own stores compete with Bergdorf’s,” Faith Hope Consolo, chairman of retail leasing and sales at Prudential Douglas Elliman, told the Post.

But a boom in luxury retailing in the last few years may have changed the situation.  “There’s a much bigger pie now,” Consolo said. “People don’t see it as cannibalizing anymore.”

Another factor: the new owners of Neiman Marcus, Ares Management and the Canada Pension Plan Investment Board, who paid more than $6 billion for the company last September, are looking for ways to expand their investment.

Although some have criticized the Hudson Yards complex are remote compared to midtown Manhattan, Related has managed to sign Coach to a new location there, not to mention New York Fashion Week is scheduled to relocate there as a permanent location, too.

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