The New York Times’ Post

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 article today from Craig Patterson at Retail Insider with a Canadian perspective of the unfolding Saks/Neiman Marcus potential purchase. The Saks stores in Canada are half empty already and this leads one to believe their closures could indeed be imminent (as per the continual rumours). There’s a strong leader at the Hudson Bay chain of department stores but this begs again as to whether that group will receive the support and funding they require as all eyes turn to a juicier prize in the USA. Once again the rumours ( heard for over 25 years up here in the North) that “winter is coming” and with that Neiman Marcus will enter Canada . However I would tend to agree with Liza Amlani that the focus will be on the USA and the potential with the higher density of wealthy population ( and after the painful experience of Saks and Nordstrom in this market) leaving Canada to Holt Renfrew who shares so many of the same Luxury brands - and has almost two centuries of knowledge of the market. In addition, let’s not forget the expansion of those Luxury brands themselves who are actively seeking new locations in the Canadian market as they’ve learned from their experiences . Interesting times indeed in the North American markets. #luxury #departmentstores #retail

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

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

Exciting times ahead for luxury retail! The integration of technology is transforming the industry, and it's clear that luxury can't thrive without it. Understanding customer needs in physical retail and leveraging technology to enhance their experience is crucial. From locating items and visualizing them on similar people to improving the roles of sales associates and upgrading fitting rooms, the possibilities are endless. I enjoyed this article sharing some details: 1. Acquisition Details: Hudson's Bay Company (HBC), owner of Saks Fifth Avenue, is acquiring Neiman Marcus Group for $2.65 billion. 2. Formation of Saks Global: The new entity, Saks Global, will encompass Saks Fifth Avenue, Saks OFF 5th, Neiman Marcus, and Bergdorf Goodman, along with substantial real estate assets. 3. Financial Backing: The deal is backed by equity and debt, with significant contributions from Amazon Salesforce and leading banks. 4. Retail Impact: This merger aims to stabilize and expand luxury retail amidst declining department store sales and traffic. 5. Future Operations: Each brand will retain its identity under the new conglomerate, which is projected to generate $10 billion in sales. Read more: https://lnkd.in/eGeT_wzs.

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

"On the surface, this appears to be a good match," says Mark Ryski, Author, CEO & Founder of HeadCount Corporation. "Combining efforts could indeed result in some meaningful synergies between the retailers. And notwithstanding the current softness in luxury spending — which is prone to ebbs and flows over time — I believe there is a place in the landscape for luxury department offering. However, my concern is the financial strength of Saks to undertake the merger. Selling real estate to catch-up on late payments to suppliers is hardly a sign of financial strength. Neiman Marcus is right to be cautious. Now if the LVMH came calling on Neiman Marcus, that would be a completely different story." Check out more insights from one of the retail industry’s leading experts - https://buff.ly/3qRfPx2. More great comments on this topic by RetailWire's BrainTrust experts including: Neil Saunders, Mohamed Amer, Ph.D., Ken Morris, Lucille DeHart, Jeff Sward, Nikki Baird, David Bruno, Gary Sankary, Mark Self, Brandon Rael, John Lietsch, Joan Treistman, Mohammad Ahsen (Socially Ahsen), Dick Seesel, • Shep Hyken, Patricia Vekich Waldron, Verlin Youd, and Anil Patel.

The Wall Street Journal, Saks Owner to Buy Neiman Marcus—With Help From Amazon. Retail rivals to combine in $2.65 billion deal to woo luxury shoppers. The parent of Saks Fifth Avenue sealed a $2.65 billion deal to buy rival Neiman Marcus, according to people familiar with the matter, creating a powerhouse in luxury retailing that seeks to hang onto wealthy shoppers—all with a little help from Amazon.com AMZN -1.21%decrease; red down pointing triangle . The boards of both companies have approved the transaction and an announcement could come as soon as this evening, the people said. The department-store chains had been negotiating for months and had explored a combination several times over the years. Both have struggled as some consumers spent less on pricey goods and fashion brands opened their own flagship stores. The combined company would have about $10 billion in annual sales, the people said. Luxury behemoth LVMH Moët Hennessy Louis Vuitton, which owns Louis Vuitton and dozens of other brands, had sales of about $94 billion last year. Amazon would take a minority stake in the new company, which will be called Saks Global, and plans to provide it with technology and logistical expertise, the people said. Salesforce is another minority shareholder. Saks already does business with both tech companies, so the transaction would deepen existing partnerships, one of the people said. HBC, a holding company that bought Saks in 2013, is financing the deal with $2 billion it raised from existing investors, the people said. They include Rhône Capital, the Abu Dhabi Investment Council and NRDC Equity Partners, a private-equity firm run by Richard Baker, HBC’s executive chairman, and his son Jack Baker. Affiliates of Apollo Global Management APO -0.20%decrease; red down pointing triangle are providing $1.15 billion in debt financing. By Suzanne Kapner and Lauren Thomas #retail #thefutureofretail #luxuryretail #jobs #management https://lnkd.in/eT5qEiWk

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

New York’s Saks Fifth Avenue and Dallas’s Neiman Marcus Group, two iconic names in luxury fashion, are joining forces under the new umbrella company “Saks Global.” According to The Dallas Morning News, this landmark deal is set to reshape the market, combining their unique strengths to offer unparalleled customer experiences. Saks CEO Marc Metrick l highlights that this merger will leverage customer data to tailor individual experiences, eliminating the need for brand differentiation at the store level. With Neiman Marcus’s rich history in Dallas since 1907 and Saks Fifth Avenue’s prominence in New York since 1924, this combination brings together two storied legacies. Both brands have weathered challenges, from the pandemic to financial restructuring, but have emerged stronger. Neiman Marcus, for instance, posted an impressive $4.5 billion in revenue in 2023. As these giants come together, we can expect innovative growth and enhanced offerings for luxury shoppers. So much to look forward to! We are excited to see how it all unfolds! https://lnkd.in/gtHbgSnY #HalifaxWest #WinTogether #capitaladvisory #MandA #restructuring #operatingadvisory #LuxuryRetail #SaksGlobal #NeimanMarcus #FashionIndustry #RetailInnovation