As A Cultural Icon, New York City Needs Bergdorf Goodman

Life is far from normal in New York City. Times Square has emptied, museums are shut, Broadway theaters are dark, and concert halls are silent. New York’s cultural scene has been put on hold. But Bergdorf Goodman is also part of the city’s cultural scene and, despite its owner’s financial woes, the store’s eventual reopening will help bring a small part of normalcy back to city life.

It has not been an easy time for Bergdorf’s parent company, Neiman Marcus Group, Inc. Drowning in debt, the Neiman Marcus Group filed for Chapter 11 bankruptcy protection on May 7. Upon filing, Neiman Marcus entered into an agreement with creditors and shareholders that included an infusion of cash and the elimination of $4 billion of debt, in exchange for a majority ownership of the firm. The plan called for potential store closures but it also secured an immediate future for the retail chain. However within the past few days, this agreement is being challenged by some lenders who are unhappy with the deal. They want the CEO removed and acquisition talks with Saks Fifth Avenue to resume. It’s a chaotic time for Neiman Marcus.  

Bergdorf Goodman seems far removed from the boardroom mess and it appears more focused on its future. Neiman Marcus acquired Bergdorf Goodman in 1972. As part of its acquisition, Neiman Marcus agreed to not open a rival store in New York City. Since then the two stores have operated under separate management teams. 

However, in March 2019, Neiman Marcus entered the New York City market. It opened a store within the massive Hudson Yards project, where it serves as the main retail anchor. There were some initial concerns that the new Neiman Marcus could affect its sister store, Bergdorf Goodman, but those fears have not materialized. Hudson Yards is a world apart from Fifth Avenue.

Bergdorf Goodman is located on Fifth Avenue, just south of Central Park next to the Plaza Hotel. Its men’s store is conveniently located across the street in the old FAO Schwartz building. The opulent department store defines the legendary lore of its nearby shopping district. 

Part of the brains and mystique behind Bergdorf Goodman during its earlier days was its former chairman, Andrew Goodman. He was a visible presence at society functions and on the store floor. He devoted his life to the business and even lived in a 17-room penthouse above the store.

The store that served Greta Garbo, Marlene Dietrich, and Gloria Swanson, and helped design Jacqueline Kennedy’s inaugural gown, based on her own sketches, now serves celebrity clients such as Beyoncé, Sarah Jessica Parker, and Johnny Depp. It continues to launch illustrious careers for fashion designers, just as it did with Halston, Isaac Mizrahi, and Romeo Gigli. 

Bergdorf Goodman is so unique to New York City that its only attempt at a branch store, back in 1974, failed after six years. Located in White Plains, it was transitioned into Neiman Marcus. White Plains was not Bergdorf’s; only Manhattan was. 

Fifth Avenue has changed over the past several decades. Many of the large retailers such as B. Altman, Best & Company, and Bonwit Teller have closed. Even Lord & Taylor closed its Manhattan flagship a little more than a year ago. A number of Fifth Avenue’s designer boutiques have been replaced by souvenir shops and discount stores. But despite the changes, Bergdorf Goodman continues to hold court at its rightful place at the top of Fifth Avenue. It carries for some of the most exclusive fashion lines that the city has to offer. 

When department stores were in their prime, they were regarded for their high levels of customer service. Part of Bergdorf’s success within an industry that has seen the loss of several major retailers has been the store’s ability to evolve and adapt to today’s customer. Kat Choroco, the head of Marketing and Communications, says, “New York is ever changing as arguably one of the most important luxury markets in the world.” Bergdorf’s stands for “unabashed luxury, unparalleled personalized experiences and relationship,” says Choroco. “As the house of extraordinary taste for 120-years, [Bergdorf Goodman] is New York’s original icon of style. Bergdorf’s plays a critical role in defining the culture of fashion.”

Bergdorf’s never abandoned its customer, or “clients.” Choroco says, “Bergdorf Goodman’s identity as a preeminent luxury retailer attracting a global clientele has long been well-established, and we continue to modernize our definition of it. [The Bergdorf shopper] is somebody with a multidimensional lifestyle that has nothing to do with age. It’s catering to a special psychographic, not demographic. From our designer partnerships, activations, and product offering – we constantly challenge ourselves to serve our customer like no other.”

The vibe at the Hudson Yards Neiman Marcus feels different. It feels cold and quiet. It’s also confusing to navigate. This Neiman Marcus store does not cater to Manhattan’s traditional walk-by shopper. No street-level windows draw the customer into its front door. Instead, that shopper has to maneuver a maze of escalators to reach its fifth-floor main entrance. 

Both Neiman Marcus and Bergdorf Goodman realize that their futures rely on an improved internet shopping experience. Online competition, even at the highest fashion level, has increased in recent years. According to Choroco, “better aligning our digital and store brand expressions delivers a seamless and consistent brand experience for customers.” Bergdorf’s recently launched a new digital selling tool that allows associates to connect with clients remotely while the store remains closed. “Our associates have meaningful and authentic relationships with our clients and we are connecting with and continuing to serve them at a time when they may need us most.”

Bergdorf Goodman plays a large role in New York’s cultural life. You don’t have to be a “client” to know or appreciate that it’s there. Its window displays, especially during the holiday season, are works of art. Bergdorf Goodman, with its frequent celebrity visits and community presence, IS New York City. With so much of the city’s cultural world closed or silent due to COVID-19, Bergdorf’s eventual reopening will help restore an important symbol of life to New York City.