We lost a giant in American retail this week when Ira Neimark died. The man championed American designers as household names and opened up the world’s largest market to hitherto unfamiliar European brands like Fendi. He also gave generously of his knowledge to future generations. With his book “Crossing Fifth Avenue to Bergdorf Goodman: An Insider’s Account on the Rise of Luxury Retailing”, Ira inspired in me a passion for retail and led me to join Hudson’s Bay Company right out of school.
Ira’s passing also reminds us that the health of American fashion is inextricably bound with the state of American retail. Under Ira’s leadership, Bergdorf Goodman nourished brand juggernauts like Halston and Michael Kors by committing both distribution and capital. Ira also resisted the siren call of expansion and maintained a clear focus on Bergdorf Goodman’s customers. Today’s dearth of American luxury brands on the international stage and department stores’ ongoing malaise indicate that our industry has lost its way.
And yet, Ira’s example suggests that there is hope. As direct-to-consumer brands experience diminishing returns on beating prices through disintermediation, they will need support in mastering the art and science of retail. Present incumbents in the form of department stores and specialty retailers can adapt and meet that need – or new entities will emerge to provide retail as a service.