Coin World reports that on Thursday, HBC, the parent company of Saks Fifth Avenue, announced its acquisition of Neiman Marcus Group for $2.65 billion, merging these two renowned retailers. The merger will establish Saks Global, which includes Saks Fifth Avenue, Saks OFF 5TH, the eponymous department store chains of Neiman Marcus, and Bergdorf Goodman. “We are thrilled to take this step to bring these iconic luxury brands together,” said HBC CEO Richard Baker in a statement. “This transaction has been anticipated by many in the industry for years and the benefits it will provide to our customers, partners, and employees.” Baker added, “This is an exciting moment for the luxury retail industry,” citing technological advancements that can “redefine” the customer experience. He is one of several executives from both companies who will focus on technology as a key to the future. As part of the deal, Marc Metrick, CEO of Saks.com, will serve as the CEO of SaksGlobal’s operations. Ian Putnam, President and CEO of HBC Properties and Investments, will become the CEO of Saks Global’s real estate and investment business. Both will report to Baker, who will serve as the Executive Chairman of Saks Global. Geoffroy van Raemdonck, CEO of Neiman Marcus Group, described the partnership as “a positive choice in the evolving retail landscape.” The deal comes during a tumultuous time for traditional brick-and-mortar retail following the boom in e-commerce. The post-pandemic demand for experiences has intensified this pressure, forcing consumers to spend on dining out or travel rather than hoarding goods during lockdowns. With a significant drop in discretionary spending, the department store sector has found it particularly challenging to attract younger shoppers.
