The parent company of Saks Fifth Avenue, HBC, will purchase department store chain Neiman Marcus for US $ 2.65 billion, the firms said on Thursday. This acquisition would provide the companies more negotiation leverage with suppliers and improved cost management.
Following a luxury retail boom following the epidemic, the sale comes as luxury shops battle decreasing demand as high interest rates and inflation compel shoppers to restrict budgets.
Saks Global, a conglomerate encompassing Saks Fifth Avenue, Neiman Marcus, and other high-end retail and real estate holdings, will be established, according to HBC. In 2020, Neiman declared bankruptcy due to the pandemic forcing the closure of Neiman and other stores across the US, which severely damaged the company’s earnings.
Neiman Marcus is a well-known retailer serving affluent clients by offering designer clothing, purses, shoes, and other luxury goods. The CEO of Saks’ online division, Marc Metrick, will lead the merged enterprise. Together, Saks Global will face competition from Nordstrom, Bloomingdale’s, and Macy’s.
According to HBC and Neiman, Saks Global will also receive investments from online retailer Amazon.com and CRM software provider Salesforce, which will supply technology, logistics, and help integrate artificial intelligence.
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