They definately need to keep BG a Manhattan exclusive. Â Cheapening the name by overexpansion can only hurt them.
I disagree. Who is it going to hurt? And by "hurt" what do you mean? If they expand the BG franchise into, let's say, 5 additional key markets (e.g. Chicago, SF, DC, Atlanta, and Dallas), how is that going to hurt them, assuming they hit their profitability targets in those markets? I suppose you mean that the cache of BG being a NY exclusive will be tarnished somewhat, but if I'm an executive, I'd rather have 4 X earnings rather than 1 X cache.
For one thing, seeing as NM already has stores in Chicago, SF, DC, Atlanta, and Dallas, the thing an expanded BG will hurt is Neiman Marcus stores. Â It's called canibalization. Â NM and BG are not different enough to face off with each other in most cities. Â The market isn't big enough to justify it. BTW, I vote for curves. There's more to hold onto