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Neiman Marcus CEO Denies Business Sale Amid Saks Takeover Rumors https://lnkd.in/gCgaS58f Neiman Marcus CEO, Geoffroy van Raemdonck, denies any plans for the company's sale amidst rumors of a takeover by Saks. The company remains focused on transforming the business and enhancing the customer experience. #neimanmarcus #luxuryretail #businessnews Global Retail Outlook Magazine

https://lnkd.in/eF2gPWmQ BREAKING Luxury Retailers Neiman Marcus And Saks Fifth Avenue Merging In $2.65 Billion Deal Backed By Amazon, Report Says Antonio Pequeño IV Forbes Staff Pequeño is a breaking news reporter who covers tech and more. Jul 3, 2024,06:23pm EDT TOPLINE Saks Fifth Avenue’s owner, Hudson’s Bay Co. closed a $2.65 billion acquisition of luxury retailer Neiman Marcus, according to The Wall Street Journal, which will merge Saks and Neiman with the help of Amazon and Salesforce amid a stagnating personal luxury market. Neiman and Hudson’s Bay’s boards approved the acquisition and may announce the blockbuster deal as soon as this evening, The Wall Street Journal reported. Amazon and Salesforce stepped in to help facilitate the merger and will take minority stakes in Saks Global—the name of the new company, according to Bloomberg, citing an unnamed person familiar with the matter. The deal will be financed with $2 billion that Hudson’s Bay raised from investors and bring 39 Saks Fifth Avenue stores and 36 Neiman Marcus stores under the merged company, Bloomberg reported. The acquisition of Neiman Marcus seeks to reduce costs and increase profitability, according to Bloomberg, as the personal luxury goods market continues to experience a slowdown in spending. Neiman Marcus and Hudson’s Bay did not immediately respond to Forbes’ request for comment. Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here. TANGENT Amazon’s stock closed down more than 1% on Wednesday at $197.59 following news that its billionaire founder Jeff Bezos plans to sell $5 billion worth of Amazon shares. FORBES VALUATION We estimate Bezos’ net worth at $214.3 billion, making him the second-wealthiest person in the world behind Tesla chief Elon Musk ($248.7 billion). KEY BACKGROUND Neiman’s acquisition by Hudson’s Bay comes four years after the luxury retailer filed for bankruptcy following debt struggles and temporary store closures brought on by the COVID-19 pandemic. Meanwhile, Saks has dealt with liquidity issues and running behind on bills, according to CNBC. The companies have been in and out of merger negotiations for years, with Neiman most recently turning down a nearly $3 billion offer from Hudson’s in December.

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."

In a bold move, Richard Baker, the owner of Saks Fifth Avenue, has fulfilled a long-standing ambition by acquiring rival luxury retailer Neiman Marcus for $2.65 billion. This deal marks the culmination of a strategy Baker initiated in 2005 when he established a private-equity firm targeting retailers with valuable real estate. Over the years, he successfully acquired Lord & Taylor, Hudson’s Bay, Saks, Galeria Kaufhof, and now Neiman Marcus, though some were later sold. Despite the challenging landscape for department stores, Baker, a dynamic and entrepreneurial 58-year-old, remains committed to combining real estate and retailing. His approach involves not only selling properties but also exploring innovative uses for retail spaces and making substantial investments to enhance retailer performance. Baker's career in real estate began under the influence of his father, Robert Baker, a prominent figure in the industry. Although initially pursuing different interests, including catering and restaurant management, Richard eventually joined the family business, contributing significantly to its expansion. Baker's daily commute by boat to Manhattan reflects his practical and efficient nature. His innovative mindset is evident in his constant stream of ideas, which he passionately pursues, despite not all being successful. Notable ventures include the purchase of Lord & Taylor, which was ultimately sold, and the acquisition of Saks, where he invested heavily in renovations and separated its e-commerce operations to capitalize on the digital market. The Neiman Marcus acquisition follows the retailer's bankruptcy in 2020 and subsequent recovery. Baker's competitive spirit and strategic patience paid off as he negotiated the deal amid a shifting retail landscape. Celebrating the culmination of this significant milestone, Baker continues to look forward, motivated by his vision of transforming the retail industry through strategic real estate and retail integration. Richard Baker's journey in the retail and real estate sectors highlights his innovative approach and resilience. By acquiring Neiman Marcus, he completes a strategic vision that began nearly two decades ago. His methods and competitive edge have reshaped the way retail properties are utilized and integrated into larger business models. #RetailAcquisition #LuxuryRetail #RichardBaker #NeimanMarcus #SaksFifthAvenue #RealEstate #RetailInnovation #BusinessStrategy #RetailHistory #Entrepreneurship https://lnkd.in/eW2VWUyU

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

Hudson's Bay Company has announced its acquisition of Neiman Marcus for $2.65 billion USD. This move merges Neiman Marcus with Saks Fifth Avenue and Bergdorf Goodman under a new entity called Saks Global. Amazon and Salesforce join as investors, hinting at big changes in the luxury retail market. Stay tuned for more updates! #HudsonsBay #NeimanMarcus #LuxuryRetail #SaksGlobal #Amazon #Salesforce #RetailNews #BusinessUpdate #LuxuryFashion #Investments #RetailMarket

Last week was an exciting week in #CRE and #Retail! 🏢 🛍 😃 Hudson's Bay Company (owner of Saks Fifth Avenue) is acquiring Neiman Marcus Group in a $2.65 billion dollar deal and forming the conglomerate that will be known as 'Saks Global'! HBC stores and Saks locations in Canada will remain separate. Saks Global will focus on Luxury Retail Technology and guess what?! Amazon, who has been dabbling in the physical retail space off and on, will be helping and investing in the tech side of things! 😮 As we have all seen there has been a decline in revenue and foot traffic at #departmentstores, I regularly watch YouTube videos of people filming "dead malls" and it's always been sad to see! I grew up in the 2000s so have fond memories of going to concerts and events at the mall and every weekend was so packed! My question to you is do you think this new venture will benefit department stores? And who do you think might team up next? 🤔 #commercialrealestate #physicalretail #deptstores #manda #acquisitions

Two titans of luxury department store retail are set to merge unless the FTC spoil the party. Saks Fifth Avenue Group has a 3 billion dollar on the table to acquire Neiman Marcus Group . Rumours have abound about this merger for months especially with Saks Fifth Avenue struggling to pay vendors and taking out loans to stay afloat. Which makes this deal somewhat fantastical when you think about the debt SaksFifthAvenue would have to take on to finalize this merger. It is also rumoured that Zalando would provide the funds for the deal What is the benefit of this merger? Perhaps some back office consolidation of buying, finance and operations but then I question what is the point as these two retailers co-existing in some markets like Miami are anchors in malls. Do they truly service difference customers? In Canada we have ended up with on luxury retailer which is Holt Renfrew. Saks Fifth Avenue with Canadian owner Hudson's Bay tried entering Canada with tepid results. With more and more luxury brands having their own stand alone retail and online presence is it as necessary to have multiple department stores? #luxuryretail #departmentstores #merger #acquistions #retail #retailing https://lnkd.in/gZ9nSs7N

Looks like the Thanksgiving parade is still on. Any buyout talks for Macy's with Arkhouse and Brigade is over. Uncertainty around how the investment firms would finance such a takeover was enough to pull the plug on further discussions. For months, Arkhouse and Brigade dangled a high-highfalutin carrot that had shareholders chomping at the bit - acquiring Macy’s in a deal valued at $6.6 billion, or $24 per share cash. But it seems that when it came time to put the pedal to the metal, the investment firms couldn't come through. Like many private equity takeover deals involving retail, the harsh reality is the Arkhouse and Brigade's plans were based on monetizing Macy’s real estate assets for short term gain. In other words, they planned to sell off assets rather than investing in the retailer's long-term future. We saw the same issue with Kohl's as activist investors pushed the retailer to open itself to acquisition offers where the core plan was to sell off real estate holdings. In Macy's case, that would be at odds with the retailer's turnaround plans which includes pivoting to luxury sales and accelerating the expansion of its new, small-format stores. Macy's isn't out of the woods with falling sales due to inflation. The turnaround plan may be in place, but only time will tell if it works https://cnb.cx/469aYd9 #macys #retail #investment #acquisition #business #realestate