The contrast between Neiman Marcus and Allbirds couldn't be steeper. The traditional retail standard Neiman Marcus fell into bankruptcy during the pandemic, while newcomer and direct-to-consumer brand Allbirds is rolling out an offline expansion. As both brands take steps to adjust to the pandemic, Placer.ai took a look at whether a focus on driving foot traffic into physical stores is the path to sustainability for either company.
Through the recession, Neiman Marcus has seen a significant decline in monthly visits year-over-year, nearing a 100% decrease in April and May, but continuing to see traffic reduction of 40% in August, according to data from Placer.ai. Allbirds, on the other hand, also had a rough April and May, but in-store visits had nearly recovered in August, down only 15.7% year-over-year. Placer.ai recently looked deeper into these two retailers and their recent strategies.
In September, Neiman Marcus emerged from bankruptcy; however, Placer.ai is unconvinced that the retailer will be able to reverse its downward direction. First, Neiman Marcus was struggling prior to the pandemic. In January, for example, monthly in-store visits were down 1.4%. The good news is that the brand has improved through the pandemic, inching closer to 2019 levels each month. The decline in foot traffic isn't exclusive to Neiman Marcus, all department stores have experienced a similar trend.
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