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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

✨ 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

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."

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

Big news in luxury retail - Saks Fifth Avenue and Neiman Marcus are ending their long standing competition. Saks' parent company will acquire its rival for $2.65 billion and create a new group called Saks Global. Amazon will supply the company with technology and logistical support and hold a minority stake. Salesforce also will be a minority shareholder. #luxury #retail #bigdeal #acquisitions #retailnews

Saks Fifth Avenue & Amazon to buy Neiman Marcus Group for $2.65 Billion The acquisition of Neiman Marcus Group makes Saks Global, as the new group will be called, the dominant player in its market, with a combined 75 stores (including two Bergdorf Goodman locations), as well as 100 off-price outlets. The new group’s only real rivals in the United States will be Macy's which includes Bloomingdale's, and Nordstrom. Amazon will take a minority stake in the new company and will provide technology and logistical expertise. Another minority shareholder is Salesforce. Interesting to see large tech and e-commerce companies continue to invest in brick & mortar retail... https://lnkd.in/gi-zQ3R2 #retailrealestate #luxaryretail #consumerspending #cbre #amazon #saks #neimanmarcus

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

HBC is looking to buy Neiman Marcus, with a little help from Amazon and Salesforce. I'm fascinated by this deal and the history that got us here. HBC came out of a retail holding company created by NRDC Equity Partners. NRDC's first foray into retail was purchasing Lord and Taylor. I worked at Lord and Taylor at the time for a third-party company. Back then, NRDC was focused on real estate and the purchase of Lord and Taylor was a real estate play. It was NRDC's first foray into retail and the rumor was that they were planning on selling off the stores, especially since they paid the amount Lord and Taylor Fifth Avenue was worth. We then heard that they liked retail, eventually purchasing Hudson Bay Company and Saks. Lord and Taylor was eventually sold off to Le Tote, which finally closed it. Right now, from a Porter's Five Forces perspective, the power in luxury retail is with suppliers, with LVMH especially commanding power. The shared purchasing efforts between Saks and Neiman Marcus should help the retailers get more of that power back. https://lnkd.in/gkuYtenf #retail #mergers

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

https://lnkd.in/gyZgfifN Saks Fifth Avenue is set to acquire Neiman Marcus in a major move that’s poised to shake up the luxury retail world. By joining forces, these two iconic brands hope to create a new powerhouse in high-end shopping. This merger comes at a crucial time, as both companies are trying to adapt to changing consumer habits and the lingering effects of the pandemic. Neiman Marcus, in particular, has had a rough time lately, especially after its highly publicized bankruptcy in 2020. The hope is that partnering with Saks will help Neiman Marcus regain its footing and shine again in the luxury market. Personally, I’m not so sure this merger will be the silver bullet Neiman Marcus needs. The retail landscape has shifted dramatically, with more people, including myself, looking for affordable quality and unique thrift finds rather than splurging on traditional luxury goods. This trend means luxury retailers are having a harder time staying relevant. Even with Saks’ support, Neiman Marcus has a lot of work to do to win back the trust of shoppers. The damage from their 2020 bankruptcy is still fresh in many minds, and just teaming up with another high-end retailer might not be enough to fully restore their reputation.