Content area
Full Text
When Ronald Frasch moved into the chief executive's office at Bergdorf Goodman two weeks ago, he didn't need anyone to show him the way.
Mr. Frasch worked for Bergdorf's parent, Neiman Marcus Group Inc., in the 1980s and he spent time in that very office on the eighth floor listening to the retail philosophy of then-CEO Ira Neimark. "I would come to this office in awe of Bergdorf Goodman," Mr. Frasch recalls.
Today, however, Mr. Frasch must find a way to put more shoppers under Bergdorf's spell. He takes over at a critical juncture for the uptown retail icon, which has slipped from its 1980s status as Manhattan's premier location for upscale fashion.
Mr. Frasch must find a way to attract younger, hipper customers while maintaining Bergdorf's base of more conservative, older shoppers. In addition, he must complete major renovations to the main store, at 58th Street and Fifth Avenue, and rebuild the retailer's top management ranks, which have been hit by several high-profile defections in the past year.
As if that weren't enough, Mr. Frasch is stepping into a management controversy of his own. Bergdorf's aggressive president, Peter Rizzo, had publicly campaigned for the CEO job. Mr. Rizzo is credited with modernizing the look and merchandise assortment at Bergdorf Goodman Men, across Fifth Avenue from the main store. However, he was passed over because his independent spirit...