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Neiman Marcus is currently offering interest-free payments for its expensive fashion

You mortgage your house and take out a loan to Toyota. Now it’s time to fund the new Gucci bag.

Neiman Marcus plans to bring a courtroom to shoppers this holiday season with a beer budget and a taste of champagne. Invite designers such as Chanel, Prada and Louis Vuitton to scoop up expensive fashion with the help of flexible and interest-free payment plans.

A Dallas-based retailer who emerged from the bankruptcy of Chapter 11 in late September said Wednesday. Partnering with San Francisco-based financial technology company Affirm to allow shoppers to defer payments for expensive items at little or no additional cost.

With the new option, shoppers can pay for purchases over $ 50 with only 0% interest on a schedule ranging from 6 weeks to 36 months, depending on the size of the cart. For example, a $ 995 Manolo Blahnik pump can cost $ 166 a month for six months.

Niemann said the customer would be prepaid for the total cost of the purchase and “never pay more than they agreed to,” adding that there would be no delay or hidden charges.

The deal occurs when consumers build a pile of savings in a pandemic, as restaurants, cinemas, and other places where they usually blow cash are closed. Niemann is now a member of retailers from Wal-Mart to Williams Sonoma. Both use Affirm’s services to earn dollars during the important Christmas season.

Liz Dunn of Consumer Growth Partners, an industry consulting firm, said handbags in particular could benefit from flex spending options, as high-value purchases appear to be more manageable under plan. “Apparel and luxury are really hard because there is nowhere to go,” she said.

Flex spending is a smart way to attract millennial shoppers, but it also carries risks, Dan added.

“The credit bubble is really bad for consumers and ultimately has a negative impact on the economy,” she warned. “It’s the thin line that companies are trying to walk on. Are you providing services or helping people buy what they can’t afford?”

For years, retailers like Home Shopping Network and QVC have built large businesses by offering flexible payments. Assert that shoppers who use flex payments tend to spend more on average and come back to buy more often.

High-tech companies that are also affiliated with Nordstrom and Peloton said the merchants using the service reported that their average order value was 85% higher than other payment options. Earlier this year, Affirm said nearly 70% of its loans came from repeaters.

“Not only will we be able to reach customers who need payment method flexibility and price transparency, but we will also increase sales and average order value,” said Neiman Marcus Chief Digital Officer. Said Katie Mullen.

Neiman Marcus is currently offering interest-free payments for its expensive fashion

Source link Neiman Marcus is currently offering interest-free payments for its expensive fashion

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