(CNN) – Neiman Marcus is shutting down most of its Last Call stores, the discount offshoot owned by the luxury retailer.
The Dallas-based company announced Wednesday that a "majority" of its 22 Last Call stores in the United States will shutter in the fall as it focuses on full price, luxury selling. Some stores will remain open to sell leftover Neiman Marcus inventory rather than buying new merchandise. The company hasn't decided which Last Call locations will close.
Roughly 500 jobs will be eliminated across Last Call, but some employees will be placed in other roles within the company. Another 250 managerial jobs will be eliminated at Neiman Marcus stores as part of the company's focus on "growing its luxury customer base." Two distribution warehouses in Texas are also closing.
Neiman Marcus has 43 locations in the United States, and it also owns Bergdorf Goodman.
The changes across Last Call and Neiman Marcus are meant to drive "accelerated profitable and sustainable growth," CEO Geoffroy van Raemdonck said in a press release. He said the brand is also bolstering its digital efforts as shoppers shift their habits online.
Neiman Marcus' closure of Last Call is bucking the trend of department stores that are increasingly moving into the discount sector. Lower-priced rivals, like TJMaxx, Marshall's and Target are continuing to grow their sales because shoppers are hunting for deep discounts. That has squeezed department stores, forcing them to lower prices on clothes or put them on sale, which has pressured profits.
To help lure customers back, retailers are opening discount stores. Nordstrom Rack is expanding and Macy’s Backstage opened in 2015 and recently said it’s adding the concept within some of its department stores.