AzamineTalks’ Post

✨ Albeit exciting in the boardroom, as signalling of more shifts in the luxury retail landscape continue to morph the realities of the marketplace/department store domain, it’s all becoming stale and uninspiring on the ground where originality and point of difference are getting lost in the proverbial shuffle 🔀 The majority of these takeovers and M&As lack evolution and require only transactional profit margins and shareholder primacy as their main results driver on the other side; diluting the honest experience of a ‘brand’ that’s needed for long term growth. 🌎The world of retail started as a place where innovation, creativity and desire could come together to inspire connection and purchase - To my community rich with talent and pioneer ship, I say we can do better than let go of what we once understood so instinctively. #retail Niche NovAzure #peoplebeforprofit #design #innovate #grow

Everyone's trying to figure out what the Saks Fifth Avenue acquisition of Neiman Marcus Group is going to mean in the luxury market. I took a look and here's how I read it, in my latest Forbes.com post with Warren Shoulberg Richard Kestenbaum Marc Metrick Pete Nordstrom Nordstrom #luxuryretail #luxurymarket #mergersandacquisition #luxuryconsumers #luxurycustomers #luxuryshopping

The parent company of Saks Fifth Avenue has finalized a $2.65 billion acquisition of Neiman Marcus, creating a formidable entity in luxury retail. This move aims to attract wealthy shoppers with support from Amazon, which is taking a minority stake and offering technological and logistical expertise. Salesforce also holds a minority stake. The merged entity, named Saks Global, will have $10 billion in annual sales and over 150 locations, including Saks Fifth Avenue, Saks OFF 5th, Neiman Marcus, and Bergdorf Goodman. Both companies have faced challenges as consumer spending on luxury goods has declined and fashion brands have opened their own flagship stores. This deal, financed by $2 billion from existing investors such as Rhône Capital and Apollo Global Management, along with $1.15 billion in debt financing, is a strategic attempt to consolidate resources and strengthen market presence. Marc Metrick, CEO of Saks’s e-commerce business, will lead the combined company. Stores will retain their brand names. Richard Baker, HBC’s executive chairman, will serve as Saks Global executive chairman. The merger is seen as beneficial for customers, partners, and employees, with no immediate plans to close stores. This transaction is significant given the backdrop of struggling department stores. Neiman Marcus emerged from bankruptcy in 2020, and HBC has been restructuring to maintain liquidity, including raising $340 million through real estate sales. The luxury market has faced headwinds, with inflation impacting sales, especially in the Americas. With a stronger unified front, Saks and Neiman Marcus aim to negotiate better terms with suppliers and reduce costs. This deal positions Saks Global to navigate the evolving luxury market landscape more effectively. Saks Fifth Avenue and Neiman Marcus have long been iconic names in American luxury retail, with rich histories dating back over a century. The luxury market has seen shifts, particularly post-COVID-19, with changes in consumer spending and the rise of direct-to-consumer brands. Department stores face increasing pressure from both the e-commerce boom and the need for physical store optimization. Amazon and Salesforce’s involvement highlights the importance of technological integration in modern retail strategies. #LuxuryRetail #SaksFifthAvenue #NeimanMarcus #Amazon #MergersAndAcquisitions #RetailNews #LuxuryMarket #DepartmentStores #FashionIndustry #Ecommerce #BusinessNews https://lnkd.in/eEwbAk6T

Is the Saks acquisition of Neiman Marcus a good move? Saks Fifth Avenue's parent company, HBC, has announced the acquisition of Neiman Marcus for $2.65 billion, which, once the transaction is finalized, will establish a new luxury retail powerhouse named Saks Global. How might the two brands avoid losing their identity and positioning in the competitive luxury retail market? Read the full article here: https://lnkd.in/gRNpNrqe Paula Rosenblum "I don’t see how putting these underperforming retailers together creates differentiated, accretive but profitable experiences…The luxury market is getting crazy oversaturated." Shannon Flanagan "Who knows?! It saddens me to see another iconic brand be folded into a like brand. The big question I’m most curious about is the positioning of Neiman Marcus in their portfolio: stores, product, teams, culture, etc." Jeff Sward "This is a far from obvious solution to what ails these two retailers and this tier of the market. Sure, they will save a couple of nickels in some back office efficiencies and a couple more nickels in “negotiating power” (maybe). Neither of those press release favorites will move the needle significantly."

Things are hotting up in the east vs west battle for global dominance of the premium department store space. Hudson's Bay Company owned Saks Fifth Avenue merging with Neiman Marcus Group further cements Richard Baker’s ambitions to create the ultimate global luxury department store conglomerate. How stable mates Hudson's Bay and GALERIA Karstadt Kaufhof GmbH will be involved in this is not yet clear but the involvement of tech behemoths Amazon and Salesforce in this move is the ultimate enabler for global consolidation in both the physical and digital space. Given the collapse of FARFETCH, the questionable future of NET-A-PORTER, and the resurrection of the department store as brand aggregator, there is a void here to be exploited for sure. Currently the Thai giant Central Group leads the field in this, linking Selfridges group, THE KADEWE GROUP, DeBijenkorf BV, Brown Thomas Arnotts , Rinascente ILLUM GLOBUS CRG and Robinsons Retail Holdings Inc. On a market by market basis there has been little cross over, other than Germany, but the digital space could see a direct battleground. Perhaps a purchase of YOOX NET-A-PORTER might be a logical place for one of them to go next? https://lnkd.in/eaxV8AXX

Congratulations to everyone involve!. This is great news for the luxury industry. However, the tone of the headline may be somewhat misleading. It is widely agreed that success is not rare when a clear strategy is in place, and one follows it with precision while building trust with partners, shareholders, and customers. Focusing on these key elements is essential to achieving positive results. "Richemont is reportedly making progress in finding a buyer for its loss-making Yoox Net-a-Porter unit, with e-tailer Mytheresa, a rare success story in a troubled luxury e-commerce market, the most frequently cited suitor. Richemont and Mytheresa reported quarterly results this week, though neither has spoken much about M&A in past earnings calls". #Ecommerce #Marketplace #fashion #partnership #trust #credibility

After months of industry chatter, a pair of mergers may soon reshape the luxury retail landscape, both online and off. Richemont is reportedly making progress in finding a buyer for its loss-making YOOX NET-A-PORTER unit, with e-tailer Mytheresa, a rare success story in a troubled luxury e-commerce market, the most frequently cited suitor. Both Richemont and Mytheresa report quarterly results this week, though neither has spoken much about M&A in past earnings calls. Then there’s the on-again, off-again merger between Saks Fifth Avenue and Neiman Marcus Group, which is thought to be on a fast track after Saks owner Hudson's Bay Company put together a $3 billion bid for its rival. We’ve heard this story before, of course, but recent reports in WWD and Axios indicate HBC has significantly sweetened its offer from a $2.1 billion bid in December. Also in the mix lately is Nordstrom, with the upscale department store’s founding family lining up financial partners for a buyout. Any of these deals could be announced this week, or this month, or later this year, or never. But for now, here's a rundown of the current state of play. ✍️ Brian Baskin

Thanks to The Business of Fashion for including my thoughts in this article on the potential acquisition of Neiman Marcus by the parent of Saks Fifth Avenue. The merger of the two companies will create some benefits, but it still leaves lots of questions as to their future place in the luxury retail sector. In my view, corporate dealmaking is always exciting and generates a lot of promises. However, the real challenge is actually delivering on those promises. More in the article: https://lnkd.in/eny9tJzC #retail #retailnews #luxury #departmentstores #fashion #apparel

Saks and Neiman Marcus are merging, but the road ahead is anything but smooth. This opinion piece by Forbes Senior Contributor Steve Dennis explores how this deal could reshape the luxury retail landscape, but also highlights the significant challenges and uncertainties. Will it lead to growth, or are tough times still ahead for these iconic brands? 🌟 #RetailNews #LuxuryRetail #MergersAndAcquisitions #Saks #NeimanMarcus #BusinessStrategy

Hudson's Bay Company, a Canadian retail business group, agreed to acquire Neiman Marcus Group, an American integrated luxury retailer, for $2.65bn. “We're thrilled to take this step in bringing together these iconic luxury names, Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman,”“For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees. This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees,” Richard Baker, HBC Executive Chairman and CEO. Neiman Marcus Group (led by Geoffroy van Raemdonck and Katie Low Anderson) is advised by J.P. Morgan, Lazard and Sullivan & Cromwell LLP (led by Melissa Sawyer and Lauren Boehmke). HBC (led by Gerald Storch) is advised by Elm Street Advisors, Deloitte, M. Klein & Company, Solomon Partners and Willkie Farr & Gallagher LLP. Debt financing is provided by Apollo Global Management, Inc., Bank of America, Citi, Morgan Stanley, RBC Capital Markets and Wells Fargo. #MergersAcquisitionsDivestitures #Luxury #Retail