Saks Global has completed its previously announced acquisition of Neiman Marcus Group for a total enterprise value of $2.7 billion.
This acquisition brings together the luxury retail brands Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks Off 5th, with each continuing to operate under its own brand, Saks Global said in a Monday (Dec. 23) press release.
“As one company, we have an opportunity to transform the way we serve customers, blending art and science to ensure each customer’s experience is unmistakably their own,” Marc Metrick, CEO of Saks Global Operating Group, said in the release. “With deep relationships across the industry, cutting-edge personalization and strategic technology partnerships, we are poised to drive innovation and growth.”
The acquisition also brings together Saks Fifth Avenue and Neiman Marcus flagship properties with a gross asset value of $7 billion, according to the release. These will be included in Saks Global Properties & Investments.
The combined company’s strategic partnerships include its investors Amazon, Authentic Brands Group, Salesforce and G-III Apparel Group. These partners will work with Saks Global on innovation, the maximization of the potential of luxury brands, the creation of a highly customized shopping experience and the development of merchandising, per the release.
“With data and innovation at our core and a portfolio of prime real estate, we aim to redefine the luxury shopping experience,” Saks Global Executive Chairman Richard Baker said in the release.
The parent company of Saks Fifth Avenue, HBC, announced its plans to acquire Neiman Marcus Group and establish “technology-powered retail company” Saks Global on July 4.
Amazon took a stake in Saks Global, potentially creating an opportunity for the luxury retail department chains to “think and act more like Amazon by streamlining logistics, inventory and supply chain operations,” PYMNTS CEO Karen Webster wrote July 11.
The creation of Saks Global is one example of a notable trend toward strategic partnerships in the luxury goods market, PYMNTS reported in October. Rather than retreating in the face of the challenges confronting the sector, a growing number of industry players are doubling down on collaboration to fortify their positions.
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