Neiman Marcus Group announced on Wednesday its decision to sever ties with Farfetch.
The Neiman Marcus Group announced that it will not be moving forward with its plans to move the Bergdorf Goodman app and website to Farfetch Platform Solutions (FPS). The chain of upscale department stores has also chosen not to participate in Farfetch’s marketplace.
Neiman Marcus Group and Farfetch first partnered in 2022 when the upscale online retailer made a significant US $ 200 million investment in the department store chain. Bergdorf Goodman, a Neiman Marcus Group subsidiary, was expected to use Farfetch’s technologies as part of the arrangement to improve its own e-commerce experience.
Nevertheless, Neiman Marcus Group has now made the decision to forge its own course in the development of its e-commerce technology, declining to incorporate Farfetch’s software.
The decision was made after Farfetch’s assets, including FPS, were fully acquired by the massive South Korean e-commerce company Coupang. Coupang provided a US $ 500 million financial bailout for the financially struggling Farfetch last month.
The department store brand is likely to use its first capital infusion for internal e-commerce improvements, and Farfetch will continue to be a minority stakeholder in Neiman Marcus Group despite this change.
