Neiman Marcus: One of the Best "Faulty" Business Decisions Ever Made

Neiman Marcus represents the best of Texas and of America. It has always been a source of pride to the Lone Star State that the department store associated with classic quality and decades of excellence was founded in Dallas Texas, which is the stores' current headquarters. In the television show Frasier, the character Niles says his wife regards Dallas as "the holy land" because the first Neiman Marcus store was opened there. Many fans of the store flock to Texas to view and visit the headquarters of Neiman Marcus and shop at a center of American retail history.

Neiman Marcus was founded in 1907 by Herbert Marcus, a former buyer at Dallas' Sanger Brothers department store, and his sister Carrie Marcus Neiman and her husband, A.L Neiman, both former employees at A. Harris and company. The three earned $25,000 from a successful sales-promotion firm they built in Georgia and were looking for a sound investment for what was in those days, a princely sum. They were faced with  the choice of starting a department store or investing in a "sugary soda pop business." Neiman Marcus was born from this decision, but Herbert Marcus and his family missed out on investing in Coca-Cola. Stanley Marcus used to say in jest, "Neiman Marcus was founded on bad business judgment." However, what was Coca-Cola's loss was a boom for American high-end shoppers.

Neiman Marcus

Department Store or Coke?

In 1914, a fire ravaged the Neiman Marcus store, but a temporary store was set up in a mere 17 days. The new Neiman Marcus was built, and the company saw a double in its profits once it was housed in its new location. In 1927, Neiman Marcus founded the first weekly fashion show in the U.S. and in 1936, it sponsored the highly successful show "A Hundred Years of Texas Fashion" commemorating the first century of Texas' liberation from Mexico. In 1929, the store added menswear, and throughout the Great Depression, Neiman Marcus offered less-expensive items for more frugal shoppers.

Exterior view of historic Neiman Marcus flagship store in Dallas, Texas

as seen from Commerce Street - Photo Credit:  Dfwcre8tive

Herbert Marcus and his sister Carrie died in 1950, leaving Stanley Marcus as CEO of the department stores. He opened a new store with a Southwestern theme and colorful items. In the 1950s, Herbert Marcus' portrait gallery opened, and had as its customers dignitaries and public officials. The department store sold unusual "fantasy" items along with its regular brands and items, and "his and her" holiday gifts. Neiman Marcus began opening stores outside of its native Dallas, Texas and continued developing its brands and furthering its reputation for elegance and quality.

This article is the second in the four part series about Neiman Marcus by writer and fashion philosopher Miriam Metzi.