Miami, Florida – High-end retail is bustling with news of a major acquisition as the parent company of Saks Fifth Avenue has announced plans to purchase Neiman Marcus for $2.65 billion. This merger is set to establish a dominant upscale department store in the United States, showcasing the competitive landscape in luxury retail.
HBC, the owner of Saks and Hudson’s Bay in Canada, has finalized the deal to acquire Neiman Marcus, which also includes the high-end retailer Bergdorf Goodman. As part of the agreement, Amazon will hold a stake in the combined company, providing technological support and logistics. Additionally, Salesforce will become a minority shareholder in the new venture. The head of Saks.com, Marc Metrick, is anticipated to lead the newly formed entity, Saks Global.
The idea of a collaboration between Saks and Neiman Marcus has long been anticipated, especially as both luxury retailers navigate an evolving market. Neiman Marcus notably filed for bankruptcy at the onset of the pandemic and later reemerged under new ownership. The pressure faced by both chains is further exacerbated by luxury brands expanding their direct-to-consumer reach and establishing their retail locations.
HBC’s CEO, Richard Baker, expressed enthusiasm for the transaction, highlighting the transformative potential of technological advancements within luxury retail. With a focus on artificial intelligence, the company aims to redefine the customer experience by offering personalized shopping experiences both online and in stores.
While luxury shopping saw a surge during the pandemic with consumers investing in upscale goods, the trend has since shifted. Many luxury purchases are now made online, prompting retailers like Macy’s, owner of Bloomingdale’s, to reevaluate their strategies. Macy’s has been closing stores and refocusing efforts on its luxury segment to meet the demands of the changing retail landscape.
The merger between Saks Fifth Avenue and Neiman Marcus is expected to undergo rigorous scrutiny from federal regulators, particularly in light of recent lawsuits challenging high-profile market deals. As the luxury retail sector continues to evolve, the collaboration between these two prominent brands signifies a strategic move to navigate the complexities of the modern retail environment.
With Saks Fifth Avenue boasting 39 stores across North America and numerous Saks Off 5th locations, and Neiman Marcus operating 36 stores along with two Bergdorf Goodman outlets, the acquisition sets the stage for a transformed luxury retail landscape in the country.