visionary brand, merchant & planning expert (ID white space) / general merchandise manager / director of stores / triple bottom line: people planet & profit equity / launching cause oriented sustainable e-commerce brand
The luxury market is the fastest growing segment in retail with estimated growth rate over next 5 years at 40%. If it’s going to happen the store nameplate’s should have 2 distinct strategies. Perhaps one store focuses on the young consumer and puts in the best technology shops in the world. Puts in cool younger brands and do collaborations with brands for elevated product from Champion, Nike & Addidas. Walk into Kith specialty store - thats what’s needed. Make 30% of the store sustainable product including an incredible pet shop store with only organic food and sustainable toys. Same for kids only sustainable clothes and toys. This would re-invent one of the stores completely and make relevant for younger consumers to get off their phones and get into their cars. And, the other more traditionally luxury more like Begdorf. I would put Linda Fargo over brand/.-assortment strategy. The North America Luxury Goods Market size is estimated at USD 103.10 billion in 2024, and is expected to reach USD 145.08 billion by 2029, growing at a CAGR of 7.07% during the forecast period (20242029). Source: www.mordorintelligence.com I think Neil Saunders makes some good points in terms of what Amazon can bring to the table in terms of back of house support but luxury brands are not going to sell on Amazon. When you search the brands you literally find a style with the quantity of 1. And, luxury good companies would want to push customers and their date to anywhere but their own stores. If I were them I would of gotten Armault in on this. He is the master of luxury. Another good point is that luxury stores want to sell their products In their own stores. And, if they are another store they are concession deals. So a long term strategy needs to be worked. Sit down with Arnault and cut a deal. No big picture growth strategy without Arnault brands is a big problem. Get Arnault brands and others will follow. Under the above scenario I approve. Otherwise I think bad idea. Best Neiman Marcus Group SaksFirst KITH Apple Gucci LVMH Dior Tiffany & Co. #sustainability #organic Amazon #technology
Managing Director and Retail Analyst at GlobalData Retail
That Saks Fifth Avenue has reached a deal to acquire Neiman Marcus comes as no surprise. However, the plot twist is that Amazon will take a share in the new entity – something that adds a bit of spice to an otherwise predictable deal. Bringing Saks and Neiman Marcus together is something of a marriage of convenience. Both chains have struggled with growth, and both have concerns about their prospects. The rationale is that, together, they will have more financial firepower to negotiate with luxury brands and to cut out duplicative costs. However, a merger will not resolve all issues, especially those of the relevance of the chains in a market where more luxury players are pushing direct to consumer sales. As a larger entity, negotiating power will be better with the brands, but even a combined chain will not match the heft and power of some global luxury conglomerates, which will still hold most of the cards. Moreover, as many past acquisitions have shown, cost savings do not always materialize. As such, there is a risk that the deal might end up creating an even bigger headache for Saks. Amazon taking a stake in the business makes sense, as it has ambitions to play more heavily in the luxury space and this would give it some kind of toehold. However, the real win here would be the ability of Amazon to streamline logistics and ecommerce, giving the new entity an advantage in a market where remote shopping has become more important to shoppers – especially younger ones, which both chains need to do more to attract. However, details of the role Amazon will play are still very opaque. The big but in all of this is that before any deal can go ahead it will need to jump the hurdle of the FTC. While, rationally speaking, there is no substantial competitive concern with the two companies coming together, the FTC may well take a different position given its recent aggressive stance on mergers. #retail #retailnews #luxury #fashion #mergers #corporatedeals
