Saks Fifth Avenue Parent Company Acquires Rival Neiman MarcusSaks Fifth Avenue Parent Company Acquires Rival Neiman Marcus New York City, NY: Hudson’s Bay Company (HBC), the parent company of Saks Fifth Avenue, announced on Thursday its acquisition of Neiman Marcus in a $2.65 billion deal. The acquisition will result in the formation of Saks Global, combining the luxury retail and real estate assets of both companies. HBC plans to invest in the combined entity’s e-commerce and technology capabilities. The deal comes amid a challenging market for luxury retailers, as high borrowing costs impact consumer spending. However, the companies believe that the combined entity will be well-positioned to navigate the market headwinds. Marc Metrick, the CEO of Saks’ e-commerce arm, will lead the newly formed Saks Global. The deal also includes investments from Amazon.com and Salesforce. Neiman Marcus, known for its designer fashion, accessories, and luxury products, will complement Saks Fifth Avenue’s existing portfolio. The acquisition follows a similar merger between Nordstrom and Trunk Club, which created one of the largest luxury retailers in the United States. It underscores the trend of consolidation in the luxury retail industry.
(Reuters) – The parent company of Saks Fifth Avenue said on Thursday it has agreed to acquire rival luxury retailer Neiman Marcus in a $2.65 billion deal.
Parent company HBC has announced that it will create Saks Global, a combined entity of Saks Fifth Avenue, Neiman Marcus and other luxury retail and real estate assets.
The deal was announced as luxury retailers face weakening demand as high borrowing costs force customers to tighten their budgets following the explosion of luxury retail in the wake of the COVID-19 pandemic.
Marc Metrick, CEO of Saks’ e-commerce arm, will lead the combined company.
The companies said that online retailer Amazon.com and customer relationship software provider Salesforce will also be investors in Saks Global.
Neiman Marcus is known for selling designer dresses, shoes, handbags and other luxury products.
JP Morgan and Lazard acted as financial advisors to Neiman Marcus Group on the deal.
(Reporting by Arasu Kannagi Basil and Akash Sriram in Bengaluru; Editing by Paul Simao)
