Saks Fifth Avenue store at Waterside Shops.
John Greim | Light rocket | Getty Images
Saks Fifth Avenue’s parent company HBC announced Thursday that it will acquire Neiman Marcus Group in a $2.65 billion deal that will combine the marquee retailers.
The merger will create Saks Global, which will include Saks Fifth Avenue, Saks OFF 5TH, the Neiman Marcus department store chain of the same name and Bergdorf Goodman.
“We are thrilled to take this step in bringing together these iconic luxury names,” said Richard Baker, CEO of HBC. said in a statement. “Many in the industry have been anticipating this transaction and the benefits it would bring to customers, partners and employees for years.”
“This is an exciting time in luxury retail,” Baker added, citing technological advances that can “redefine” the customer experience. He was one of several executives from both companies who pointed to technology as a future focus.
As part of the agreement, Marc Metrick, CEO of Saks.com, will assume the role of chief executive for the Saks Global business. Ian Putnam, president and CEO of HBC Properties and Investments, will become CEO of Saks Global’s real estate and investment business. Both will report to Baker, who will serve as executive chairman of Saks Global.
Neiman Marcus Group CEO Geoffroy van Raemdonck called the partnership a “proactive decision in an evolving retail landscape.”
The deal comes amid a turbulent time for traditional brick-and-mortar retail amid the e-commerce boom. This strain was exacerbated by post-pandemic demand for experiences, which led consumers to spend on restaurants or travel rather than on goods they stocked up on during lockdowns.
The department store segment in particular struggled to attract younger shoppers as consumer spending declined across the board.
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2024-07-04 20:19:06
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