New York, NY – Saks Fifth Avenue’s parent company, HBC, announced a major acquisition on Thursday, revealing plans to merge with Neiman Marcus Group in a $2.65 billion deal. This move will bring together two iconic retailers, creating Saks Global, which will encompass Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman.
“We’re excited to unite these legendary luxury brands,” stated HBC CEO Richard Baker. “Industry insiders have long anticipated this merger and the positive impact it will have on customers, partners, and employees.”
Baker highlighted the importance of embracing technological advancements in luxury retail, emphasizing the potential to enhance the customer experience. Executives from both companies echoed this sentiment, underscoring technology as a key focus moving forward.
The agreement includes key leadership changes, with Saks.com CEO Marc Metrick set to assume the role of chief executive for Saks Global, and Ian Putnam, president and CEO of HBC Properties and Investments, taking on the CEO position for Saks Global’s property and investments division. Baker will serve as the executive chairman of Saks Global.
Neiman Marcus Group CEO Geoffroy van Raemdonck hailed the collaboration as a proactive move in response to the shifting retail landscape. The deal comes at a challenging time for traditional brick-and-mortar retailers, who have faced increased competition from e-commerce and changing consumer preferences following the pandemic.
In particular, department stores have struggled to attract younger shoppers amid changing spending habits. The industry has been navigating a period of transformation, seeking innovative ways to appeal to a new generation of consumers who prioritize experiences over material goods.