In a significant move in the retail sector, the parent company of Saks Fifth Avenue is set to acquire competitor Neiman Marcus in a deal valued at $2.65 billion. The merger will create a new entity, Saks Global, which will also include Bergdorf Goodman locations.
The new entity will also include real estate assets from both companies.
This strategic move looks to enhance negotiating power with vendors and streamline costs, particularly as the luxury retail market contends with challenges from high interest rates and inflation that impact consumer spending. Neiman Marcus had filed for bankruptcy in 2020 due to the pandemic, highlighting the turbulence in high-end retail.
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Saks Global aims to compete with major retailers like Nordstrom and Macy’s and will continue operating under their existing brand names.
Key investors in Saks Global, including online giant Amazon and software firm Salesforce, will provide technology and logistical support, potentially enhancing operational efficiencies and customer experiences.
[LAUREN TAYLOR]
NOW TO A MAJOR MERGER IN THE RETAIL INDUSTRY –
THE PARENT COMPANY OF LUXURY DEPARTMENT STORE ‘SAKS FIFTH AVENUE’ — IS BUYING COMPETITOR NEIMAN MARCUS
IN A DEAL WORTH $2.65 BILLION.
THE MERGER WILL CREATE A NEW COMPANY CALLED ‘SAKS GLOBAL’.
SAKS IS NOT ONLY ACQUIRING NEIMAN MARCUS STORES – BUT ALSO BERGDORF GOODMAN LOCATIONS AS WELL.
AMAZON HAS A MINORITY STAKE IN THE DEAL – AND WILL BE AIDING THE NEW COMPANY WHEN IT COMES TO TECHNOLOGY AND LOGISTICS.
AS PART OF THE AGREEMENT — THE STORES WILL CONTINUE TO OPERATE UNDER THEIR OWN BRAND NAMES.
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