Saks Fifth Avenue store at Waterside Shops.
John Greim | Lightrocket | Getty Images
HBC, the parent company of Saks Fifth Avenue, announced Thursday that it will acquire Neiman Marcus Group in a $2.65 billion deal that combines the two historic retailers.
The merger will create Saks Global, which will include Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus’ namesake department store chain and Bergdorf Goodman.
“We are thrilled to take this step forward in bringing together these iconic luxury brands,” HBC CEO Richard Baker said in a statement. “For years, many in the industry have anticipated this transaction and the benefits it would bring to customers, partners and employees.”
“It’s an exciting time for luxury retail,” Baker added, citing technological advances that can “redefine” the customer experience. He was one of several executives from both companies to emphasize technology as a focus going forward.
As part of the agreement, Marc Metrick, CEO of Saks.com, will assume the role of CEO of the Saks Global business. Ian Putnam, president and CEO of HBC Properties and Investments, will become CEO of Saks Global’s real estate and investment business. Both will report to Baker, who will serve as executive chairman of Saks Global.
Geoffroy van Raemdonck, CEO of Neiman Marcus Group, called the partnership “a proactive choice in a changing retail landscape.”
The deal comes amid turbulence for traditional retail, driven by the rise of e-commerce. That pressure has been exacerbated by demand for post-pandemic experiences, which has led consumers to pay for restaurants or travel instead of the goods they bought during lockdown.
The department store segment in particular has struggled to attract younger shoppers amid a general decline in discretionary spending.
News Source : www.cnbc.com
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