Saks Fifth Avenue stores are located at Waterside Shops.
John Graeme | Light Rocket | Getty Images
Saks Fifth Avenue parent company HBC Thursday said It will acquire Neiman Marcus Group for $2.65 billion, merging the two storied retailers.
The merger will create Saks Global, which includes Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus’ eponymous department store chain and Bergdorf Goodman.
“We are delighted to take this step and bring these iconic luxury brands together,” HBC chief executive Richard Baker said in a statement. “Many in the industry have looked forward to this deal and the benefits it will bring to customers, partners and employees for years.”
“This is an exciting time in luxury retail,” Baker added, noting that technological advancements can “redefine” the customer experience. He is one of several senior executives at both companies to focus on technology going forward.
As part of the deal, Saks.com CEO Marc Metrick will serve as CEO of Saks Global. Ian Putnam, president and CEO of HBC Properties and Investments, will become CEO of Saks Global’s real estate and investments business. Both will report to Baker, who will serve as executive chairman of Saks Global.
Neiman Marcus Group CEO Geoffroy van Raemdonck called the partnership “a proactive choice in the ever-changing retail landscape.”
The deal comes at a turbulent time for traditional brick-and-mortar retail following the e-commerce boom. This pressure has been exacerbated by post-pandemic demand for experiences, which has prompted consumers to spend money on restaurants or travel rather than on goods they stocked up on during lockdown.
The department store sector is particularly struggling to attract younger shoppers amid sharp cuts in discretionary spending.
About The Author
