Saks Fifth Avenue store at Waterside Shops.
John Greim | Lightrocket | Getty Images
Saks Fifth Avenue is the parent company of HBC. said on thursday will acquire Neiman Marcus Group in a $2.65 billion deal that combines the legacy retailers.
The combination will form Saks Global, which includes Saks Fifth Avenue, Saks OFF 5TH, the Neiman Marcus and Bergdorf Goodman department stores.
“We are delighted to take this step to bring together these iconic luxury names,” HBC CEO Richard Baker said in a statement. “Many in the industry have anticipated this transaction for years and the benefits it will bring to customers, partners and employees.”
“This is an exciting time in luxury retail,” Baker added, citing technological advances that could “redefine” the customer experience. He is one of several executives between the two companies who have pointed to technology as a future focus.
Under the deal, Saks.com CEO Marc Metrick will assume the role of chief executive officer of the Saks Global business. Ian Putnam, chairman and chief executive officer of HBC Properties and Investments, will become chief executive officer of Saks Global’s real estate and investment 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 a changing retail landscape.”
The deal comes as traditional retail is in turmoil following the rise of e-commerce, a pressure exacerbated by the post-pandemic demand for experiences, which has led consumers to spend money on restaurants or travel rather than stocking up on goods they had stocked up on during lockdowns.
The department store segment in particular has struggled to attract young shoppers amid a sharp decline in discretionary spending.
