Saks Fifth Avenue parent company, HBC, has announced its acquisition of Neiman Marcus Group in a $2.65 billion deal. This merger will bring together two well-known retailers to form Saks Global, which will include Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus’ flagship stores, and Bergdorf Goodman.
HBC CEO Richard Baker expressed his excitement about the merger, stating that the combination of these iconic luxury brands will benefit customers, partners, and employees. He also highlighted the importance of technological advancements in redefining the customer experience, which will be a key focus for the newly formed Saks Global.
As part of the deal, Marc Metrick, the current CEO of Saks.com, will take on the role of chief executive for Saks Global, while Ian Putnam, the president and CEO of HBC Properties and Investments, will lead Saks Global’s property and investments business. Both executives will report to Baker, who will serve as the executive chairman of Saks Global.
Neiman Marcus Group CEO Geoffroy van Raemdonck described the partnership as a proactive decision in response to the changing retail landscape. The traditional brick-and-mortar retail sector has faced challenges due to the rise of e-commerce and shifting consumer preferences towards experiences over material goods.
The department store industry, in particular, has struggled to attract younger shoppers and adapt to changing consumer behaviors. The impact of the pandemic further accelerated these challenges, as consumers redirected their spending towards experiences like dining out and travel rather than shopping for goods.
Overall, the acquisition of Neiman Marcus Group by HBC represents a strategic move in the luxury retail sector and signals a shift towards leveraging technology to enhance the customer experience. The formation of Saks Global will bring together the strengths of both companies to create a more competitive and innovative player in the luxury retail market.