Saks Fifth Avenue takeover of Neiman Marcus has a chance to reenergize department stores, but it could also mean less leverage for smaller beauty brands. Read more: https://bit.ly/3Y5HcUy #hereforthefierce #beautyentrepreneur #wellnessentrepreneur #beautybusiness #beautynews
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Clarkston's Sarah Covill Broyd commented on the recent new that Saks Fifth Avenue parent company Hudson's Bay Company is acquiring Neiman Marcus Group. "With the rise of #luxury brands and the decline of #departmentstores, the #merger between Saks and Neiman Marcus will create greater power on their side for negotiations across brands and products. Consolidating two stores with high level of overlap in #brands, offerings and consumers will increase their strength in negotiating against brands. Given their similar #consumer sets and stores, I suspect they will consolidate their real estate and corporate functions. Beauty companies should expect increased pressure from the retailer, but likely less storefronts to sell into. In most department stores, the #beauty counter typically brings in a significant portion of the foot traffic, so brands have leverage. Luxury department stores also understand they also contending with prestige brands being sold at other retailers like Ulta and Sephora ..." Continue reading in the Beauty Independent article here: https://hubs.ly/Q02GsH8T0
Saks Fifth Avenue And Neiman Marcus Are Finally Uniting. Should Beauty Celebrate?
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Thanks Beauty Independent and Erica La Sala for sharing my thoughts on the Saks Fifth Avenue / Neiman Marcus Group deal and how it might impact the luxury beauty market and the department store channel overall. Some of my key takeaways: ▶ The Saks/Neimans merger is occurring amidst significant department store challenges as growth has shifted to specialty retailers like SEPHORA and Ulta Beauty. ▶ The declining department store channel has historically been key for luxury beauty brands which could face reduced retail options and leverage as a result of the merger. ▶ This further emphasizes the need for luxury beauty brands to pursue direct-to-consumer growth strategies leveraging their high AOV and gross margin profiles to support profitable new customer acquisition growth. ▶ Perhaps the combination of Saks and Neiman Marcus will allow for a more enhanced retail experience overall that is even better suited for luxury beauty in the future - only time will tell. Great insights also shared by Kelly St. John, Tina Henry Bou-Saba, Karen Hayes and other beauty industry colleagues! True Beauty Ventures #beautyinvesting #beauty #VC https://lnkd.in/eswm8YD3
Saks Fifth Avenue And Neiman Marcus Are Finally Uniting. Should Beauty Celebrate?
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Speaker, Author, Researcher and Forbes.com Senior Contributor on Luxury, Retail and Affluent Consumers
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
Nordstrom May Be Surprise Beneficiary From Saks-Neiman Marcus Merger
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With the dust selling on the announcement that Saks and Neiman Marcus will merge, many businesses and brands are trying to understand the impact of the two firms coming together. It was great to chat with Beauty Independent about what the deal potentially means for the beauty sector and the brands selling to either or both department store businesses. One of the key takeaways is that while both stores operate in the luxury space, they each have their own positions and customers so there won’t be a merger of the propositions. Brands will still need to understand the nuances and specifics of each business. More in the article: https://lnkd.in/eksUQ2KX #retail #retailnews #departmentstores #beauty #luxury
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Interesting read from Erica La Sala from Beauty Independent related to the Saks and Nieman merger. The question asked: What do you make of the Saks Fifth Avenue/Neiman Marcus deal? How will it impact the luxury beauty market? Will it strengthen the declining department store sector? According to Cristina Nuñez, "... the department store channel is a challenging one. Historically, it has been the main retail channel for luxury beauty brands given it is more suited for a higher price point. But with continued declines in traffic at department stores, the channel has proven to be a difficult place for luxury brands to rely upon for growth. Instead, growth is being driven at specialty retailers such as SEPHORA and Ulta Beauty, whose dominance has largely been at the expense of department stores". "At the end of the day, consumers will continue to shop for beauty at retailers offering best-in-class in-store experiences optimized for brand discovery. Brands should seek out these partners offering the best brand building support and a path to achieving scale. Perhaps the combination of Saks and Neiman Marcus will allow for a more enhanced retail experience overall that is even better suited for luxury beauty. Time will tell." True Beauty Ventures
Saks Fifth Avenue And Neiman Marcus Are Finally Uniting. Should Beauty Celebrate?
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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
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I think the impact of these two industry luxury leaders will be very interesting to watch. This article focuses more on the beauty side, but there are many less obvious impacts this will have on multiple industries. Jewelry, apparel, accessories, marketing, the list goes on. When you take two known names and structure them to be more profitable and leverage the best of the branded and marketing teams, get ready for an explosion of growth potential. This will also add to an even further divide in the retail sector between department stores following the wealth division in the US. Naming the large department stores now, Saks Fifth Avenue/Neiman Marcus Group, Nordstrom, Dillard's Inc., Von Mauer, Macy's, JCPenney, Kohl's, then discounters.... not many national choices but they all have very focused demographic groups. Stay tuned!
Saks Fifth Avenue And Neiman Marcus Are Finally Uniting. Should Beauty Celebrate?
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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."
Is the Saks Acquisition of Neiman Marcus a Good Move?
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Luxury Retail Shakeup! ️ Saks Fifth Avenue Acquires Neiman Marcus! #Fashion #Retail #Merger BREAKING NEWS! In a major move that redefines luxury shopping, Saks Fifth Avenue has acquired Neiman Marcus, uniting two fashion giants! This historic $2.65 billion deal (not $1.1 billion) brings together their iconic brands and merges their stores, websites, and legacies. Why the Shakeup? Both Saks and Neiman Marcus have faced challenges adapting to the digital age. This strategic move by Saks' parent company, Hudson's Bay Company, strengthens their foothold in luxury retail. What's Next? The combined powerhouse will operate under the Saks Fifth Avenue name, offering an even more expansive luxury experience. Expect seamless integration of Neiman Marcus's inventory and loyal customer base. Benefits Galore! This merger promises major cost savings and a stronger online presence, allowing them to compete fiercely with digital giants and other luxury retailers. It's a win-win for both companies and the future of luxury shopping! A Retail Revolution! With the retail landscape constantly evolving, this historic acquisition marks a new era for Saks Fifth Avenue and shapes the future of luxury shopping! Stay tuned for updates! What are your thoughts on this fashion fusion? #SaksFifthAvenue #NeimanMarcus #LuxuryRetail https://lnkd.in/dq7MqXBM
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Neiman Marcus CEO says there’s ‘no need’ to sell the business as Saks takeover rumors swirl. Neiman Marcus CEO Geoffroy van Raemdonck said there’s “no need” to sell the business as rumors swirl that rival Saks Fifth Avenue is eager to take it over. “Our shareholders don’t have the need to sell the business because we have a billion of available liquidity, we’re profitable and we’re reporting results that are in a good place and can only be better,” van Raemdonck told CNBC. Over the recent holiday, comparable sales trends at Neiman were down low single digits compared to last year, while store comparable sales trends were flat compared to the prior period. $ https://lnkd.in/eGffTadw #tradeguard #receivableputoptions #arputs #receivableputs #tradereceivables #accountsreceivables
Neiman Marcus CEO says there's ‘no need’ to sell the business as Saks takeover rumors swirl
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