Why Dubai? Bloomingdale's CEO to FBN: Dubai Debt Problems Don't Scare Us

Of all the places on the planet to open your first retail store *outside* the U.S., would you pick Dubai? It looked like a brilliant bet back in 2008 when Bloomingdale’s announced it would open its first international location in the Middle East’s version of Las Vegas: Dubai.  Who knew that just a year later the emirate would come close to defaulting on billions of debt only to be saved by a bailout from neighboring Abu Dhabi.

In 2008, Dubai was in the 5th year of a 6-year long economic boom with billions in foreign money pouring in for real estate and opportunity.  Like most fast-expanding bubbles, it would soon lose air.  This past November, word got out that Dubai was in trouble: Dubai World, the management company that invests in projects for the Dubai government couldn’t make its debt obligations.  The bustling city came to a screaming halt and world markets swooned.

Bloomingdale’s didn’t.

Mike Gould, Chairman and CEO of Bloomingdale’s says he didn’t flinch, nor did he change his strategy.  The store opened today and while its best-seller (at least for today) was the decidedly affordable Magnolia cupcakes, he has full faith that there’s nowhere to go but up.

It’s a fascinating story of a platinum brand taking a shot at expansion and then being dealt a tough hand. You’ve got to hear what he says about forging ahead.  Click on the clip below!

–Liz