Saks Fifth Avenue at Waterside Shops.
John Graeme | LightRocket | Getty Images
Saks Fifth Avenue parent HBC said Thursday it is combining two historic retailers and acquiring Neiman Marcus Group Inc. for $2.65 billion.
The merger will create Saks Global, which includes Saks Fifth Avenue, Saks Off Fifth, Neiman Marcus’ namesake department store chain and Bergdorf Goodman.
“We are excited to take this step to combine these iconic luxury brands,” HBC CEO Richard Baker said in a statement. “For years, many in our industry have been anticipating this transaction and the benefits it will bring to our customers, partners and employees.”
“It’s an exciting time for luxury retail,” added Baker, one of several executives from both companies to point to technology as a focus going forward, citing advances in technology that could “redefine” the customer experience.
As part of the agreement, Mark Metrick, CEO of Saks.com, will become CEO of Saks Global. Ian Putnam, president and CEO of HBC Properties & Investments, will become CEO of Saks Global’s real estate and investments business. Both will report to Baker, who serves as chairman of the board of directors for Saks Global.
Neiman Marcus Group CEO Jeffrey van Raemdonck called the partnership “an aggressive choice in an evolving retail landscape.”
The deal comes as traditional brick-and-mortar retail is facing a period of turmoil in the wake of the rapid growth of e-commerce, tensions exacerbated by a post-pandemic demand for experiences, as consumers spend money on restaurants and travel rather than the goods they stocked up on during lockdown.
The department store sector in particular has struggled to attract younger shoppers amid a general decline in discretionary spending.
