Neiman Marcus Offers Lower-Priced Luxury To Aspirational Shoppers

Is that $1,400 snakeskin Michael Kors bag out of your price range? Fear not, because now you can buy the leather version for a mere $695 at Neiman Marcus -- yes, that retail oasis for the wealthy.

Neiman Marcus will continue to sell its violet Halston gown (size 6 only) for $5,500, but the brand is making adjustments as the Neiman Marcus Group struggles through a year that’s pummeling the luxury market. Neiman Marcus is some $3 billion in debt and experiencing double-digit losses at its stores, including Bergdorf Goodman. Longtime CEO Burton Tansky says as a result the brand is “pressing suppliers to produce lower-priced versions of designer styles.”

It might seem presumptuous to ask favored footwear brand Manolo Blahnik for a 43-percent-off version of one of its styles of flats, but that’s exactly what Tansky did. And Manolo, rather than go elsewhere (Neiman Marcus is the brand’s biggest client), is now looking to introduce more cost-cutting styles in the future.

To prevent less expensive product lines from diluting its high-end image, Manolo plans to sell the really expensive items at its own boutiques.

But will these price-paring efforts move merchandise? Yes. Consider the "aspirational shopper," which BNET describes as “the one who can marginally afford the products of Neiman Marcus, Saks, [and] Nordstrom.” Those $695 Manolos in the “Sex in the City” sequel are out of reach, but a $395 version? Many “aspirational” women would call that an affordable luxury.

So, although Neiman Marcus would never sell the $5 flip-flops available at Old Navy, encouraging the brands it stocks to make their luxuries a little more accessible will likely move product without stooping to the level of a Macy’s or Sears.

But if the brand does become desperate, perhaps it should consider selling its cookie recipe to customers for $250.