Saks Fifth Avenue’s parent company, HBC, announced on Thursday its acquisition of Neiman Marcus Group in a $2.65 billion deal, combining two storied luxury retail brands. The merger will create Saks Global, which will encompass Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman.
“We’re thrilled to take this step in bringing together these iconic luxury names,” HBC CEO Richard Baker stated. “For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners, and employees.” Baker highlighted the transformative potential of technological advancements in redefining the customer experience.
The new structure will see Saks.com CEO Marc Metrick assume the role of chief executive for the Saks Global business. Ian Putnam, currently president and CEO of HBC Properties and Investments, will become CEO of Saks Global’s property and investments division. Both Metrick and Putnam will report to Baker, who will serve as executive chairman of Saks Global.
Geoffroy van Raemdonck, CEO of Neiman Marcus Group, described the partnership as a “proactive choice in an evolving retail landscape.” The deal comes at a time of significant challenges for traditional brick-and-mortar retailers, intensified by the ecommerce boom and shifting consumer preferences in the post-pandemic era.
The merger aims to address the struggles faced by the department store segment in attracting younger shoppers and dealing with a general decline in discretionary spending. The new Saks Global entity plans to leverage technology to enhance the shopping experience, catering to modern consumer expectations.
This acquisition reflects a strategic move to consolidate market share and strengthen the position of these luxury retailers in a highly competitive industry. With the combined resources and innovative focus, Saks Global is poised to offer an elevated shopping experience while navigating the complexities of the current retail environment.
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