Saks Fifth Avenue’s parent company, HBC, has signed a deal to acquire upscale rival Neiman Marcus Group, which owns Neiman Marcus and Bergdorf Goodman stores, for $2.65 billion. The new entity, Saks Global, will include Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, Bergdorf Goodman, and real estate assets. Amazon will hold a minority stake in the venture, adding a unique twist to the deal.
The acquisition comes as both Saks and Neiman Marcus have faced challenges in the luxury retail market, with consumers shifting towards experiences like travel and upscale dining. The deal aims to reduce operating costs, create more negotiating power with vendors, and improve the luxury shopping experience. Salesforce will also become an investor in the new entity.
Saks Global will be led by CEO Marc Metrick and CEO of Saks Global Properties and Investments Ian Putnam. The deal is a significant move in the luxury retail industry, with Amazon’s involvement signaling a push towards innovation in the online shopping experience. While the merger may not completely resolve all challenges, it creates a combined entity with a $7 billion portfolio of retail real estate assets in top-tier luxury shopping destinations.
The partnership between Saks and Neiman Marcus marks a strategic collaboration in a competitive retail landscape, where online shopping has become increasingly important. The deal is expected to bring together the strengths of both brands and drive value for customers, brand partners, and employees.
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