#LuxuryRetail #SaksGlobal #RetailAcquisition
Saks Fifth Avenue Parent HBC to Acquire Neiman Marcus Group in $2.65 Billion Deal
In a significant move to reshape the luxury retail landscape, Hudson's Bay Company (HBC), the parent company of Saks Fifth Avenue, has announced its intention to acquire Neiman Marcus Group in a transaction valued at $2.65 billion. This acquisition will lead to the formation of Saks Global, a new entity encompassing Saks Fifth Avenue, Saks OFF5TH, Neiman Marcus' main department store chain, and Bergdorf Goodman.
The acquisition comes at a challenging time for traditional physical retail, which has faced significant challenges due to the rise of online shopping. However, the merging of these renowned retail brands is expected to bring benefits to customers, partners, and employees. HBC CEO Richard Baker expressed enthusiasm about uniting these prestigious luxury labels and emphasized the potential of technological advancements to transform the customer journey.
In the new structure, Marc Metrick, the current CEO of Saks.com, will assume the role of chief executive for Saks Global, while Ian Putnam, the CEO of HBC Properties and Investments, will lead the property and investments division of Saks Global. Both executives will report to Baker, who will serve as the executive chairman of Saks Global.
Geoffroy van Raemdonck, the CEO of Neiman Marcus Group, described the collaboration as a proactive decision in a changing retail environment. The retail industry has faced challenges with the shift to online shopping and the changing consumer preferences post-pandemic, where experiences like dining out and traveling have taken precedence over purchasing goods.
Notably, the department store sector has encountered difficulties in attracting younger consumers amidst a general decline in discretionary spending. This trend has been further accentuated by the changing consumer behaviors following the pandemic, where a preference for experiences over material goods has become more pronounced.
Original Article: https://www.cnbc.com/2024/07/04/saks-fifth-avenue-parent-hbc-to-acquire-neiman-marcus-group.html
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