Neiman Marcus Scales Back in China

In WWD, there was an alluring article about how the Neiman Marcus Group is cutting back on its’ physical operations in China because of a broader slowdown in the country for luxury goods.  Since the Chinese website has not been substantial with profit from these luxury goods, the Chinese warehouse is being closed down, and the U.S. is picking up sales through the website.  I was surprised to see that the Chinese warehouse closed down because of the Neiman business model rather than the Chinese economy.  Neiman is trying to demonstrate international growth as its’ owners prepare to take the department store chain public or sell it.  Even a store with a wealthy consumer base all over, reaches its’ downfalls before its’ peaks.  

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