Neiman Marcus group operates New York’s 5th Avenue store – Bergdorf Goodman. This is considered as a premium lifestyle store. You may recall that in Dec-2007, we had an exclusive coverage on Reliance’s tie-up with the Miss Sixty brands for the trendy Indian women.
We see a shift in Reliance’s business model from grocery which was given the thrust from CMDs office towards Lifestyle retailing with higher margins. After facing resistance and realizing thin margins in Reliance Fresh, Mukesh decided to give more powers to individual business units like to make own decision on Real Estate procurement and striking brand deals. Only time will tell if Reliance can hit the 2010 goal of being the largest and most profitable retailer in India and then spin-off Reliance Retail into a separate listed entity.