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Retail News: Neiman Marcus Sold; Borsheims To Open Boutique Outlet; Murphy Jewelers Turns 100 September 11, 2013 (0 comments)
Neiman Marcus Sold to Private Investors
Dallas, TX—After months of speculation about a potential sale or IPO, luxury retailer Neiman Marcus has been sold to private equity firm Ares Management LLC and the Canada Pension Plan Investment Board (CPPIB).
The Neiman Marcus Christmas Book (left) is famous for its annual offering of überluxury gifts and at least one stratospherically priced his-and-hers fantasy gift—which have included such treats as custom-built cars and airplanes, walk-on roles in Broadway shows, and even housecats custom-bred to look like miniature leopards. But none of its fantasy offerings come close to the $6 billion price tag Ares and CPPIB paid to own the retailer itself.
In addition to its 79 full-line Neiman Marcus stores, the group also owns Bergdorf Goodman in New York City, 36 Last Call outlet doors, and three online operations, including the upscale Horchow brand.
This marks the second time in as many months that a renowned American luxury brand has been acquired by a Canadian interest—in July, Hudson’s Bay Co. acquired Neiman’s rival Saks Fifth Avenue. The firm also owns Lord & Taylor in the United States, as well as a large number of Canadian retailers.
Neiman’s $6 billion sale is twice the $3 billion Hudson’s Bay paid for Saks. Neiman’s management, led by CEO Karen Katz, retains a minority stake in the business, with the rest being equally divided between CPPIB and Ares. The purchase marks Ares’s first foray into luxury retail; its other retail holdings include a dollar store, a floor and décor store, and a warehouse-style discounter.
News of the purchase was discussed on NPR’s Morning Edition. Listen to the broadcast here.
Borsheims to Open Boutique Store In Outlet Center
Omaha, NE—Borsheims Jewelry will open a second location of its iconic jewelry store, just in time for the holiday shopping season. Borsheims Boutique will open at Nebraska Crossing Outlets in nearby Gretna, NE, on November 15, the date of the center’s grand opening celebration.
Borsheims Boutique will occupy a premiere space at the $112 million, 350,000 s.f. open-air shopping center. The Boutique represents a significant step for Borsheims, which has for years been a one-location store. The new Boutique will be the only other retail store for Borsheims other than its Omaha location. Borsheims president and CEO Susan Jacques said, “Nebraska Crossing Outlets was too appealing to pass up. The size and scale of this development, combined with the other luxury retailers, made this a perfect fit for us.”
Artist’s rendering of the soon-to-open Nebraksa Crossing outlet center. Image: otbdestination.com
Borsheims Boutique will have the same feel as Borsheims’ iconic main location. Similar furnishing, fixtures, and atmosphere will remind shoppers of Borsheims’ flagship Regency location, and customers will find the same level of customer service and selection, says Jacques.
“As our chairman Warren Buffett always says, ‘If you don’t know jewelry, know your jeweler.’ We are confident that shoppers at Nebraska Crossing Outlets will be thrilled to see their local jeweler they know and trust at this exciting new shopping center.”
The Borsheims Boutique will feature the best of the already value-priced merchandise available at the flagship Regency location, along with a large selection of substantially discounted merchandise exclusive to the Boutique. An edited selection of gift items will also be available. As always, gift purchases can be wrapped in Borsheims’ signature silver box with the burgundy ribbon.
Murphy Jewelers Launches 100th Anniversary Celebration
Pottsville, PA —Murphy Jewelers first opened its doors for business the same year Woodrow Wilson became president, Charlie Chaplin began his film career, and Jim Thorpe signed with the New York Giants. It was 1913, and both Grand Central Terminal and Ebbets Field (home of the Brooklyn Dodgers) in New York had only just opened to the public. It was also the year the zipper was invented, Cracker Jack started putting prizes in boxes, and the Internal Revenue Service started taking taxes out of earnings.
Wilson, Chaplin, Thorpe, and Ebbets Field exist only in memory, but Grand Central Station and the IRS are alive and well—and so is Murphy Jewelers. (The Dodgers and the Giants, meanwhile, both decamped for California, leaving “alive and well” up to fan opinion.)
“This is an exciting time,” says owner Patrick Murphy. “Plenty has happened since those early days when my grandfather Frank J. Murphy traveled door-to-door in a horse and buggy fixing school house clocks! Today we have three award-winning stores, and the fourth generation of our family is actively involved in running the business. You don’t accomplish that all on your own. It takes support from loyal customers and the community. So we have made them an important part of our 100th anniversary celebration.”
Numerous events have been planned to commemorate the jeweler’s landmark birthday. A three-day 100th Anniversary Sale with half off selected fine jewelry and watches kicks off September 13 for the general public, though preferred customers received exclusive invitations to attend the sale earlier on September 11 and 12.
Next is a special charity fundraising promotion, “100 Days of Share-Ring,” begins September 23. For 100 days, the jeweler will donate a percentage of the purchase price of every engagement ring it sells to one of a list of charities the jeweler has preselected for customers to choose.
Additional events will include:
- The “Faces of Murphy”: a social media promotion that will solicit photos and stories from families that have been Murphy customers for generations.
- “100 Rocks”: an area-wide search to identify individuals who share Murphy Jewelers birth year of 1913. Those celebrating their 100th birthday in 2013 will receive a gift from Murphy Jewelers.
- “Anticipating 100 More:” the interment of a time capsule on Murphy Jewelers’ property, containing a selection of contemporary items to be opened during an anticipated 200th anniversary celebration in 2113.
Murphy Jewelers’ three stores are in Pottsville, Hamburg and Saucon Valley, PA, and it is family owned and operated by the third and fourth generations of the Murphy family.
The original Murphy Jewelers opened its doors in 1913 in downtown Pottsville, Pennsylvania. This photo was taken several decades later.