Saks Fifth Avenue store at Waterside Shops.
John Greim | Lightrocket | Getty Images
Saks Fifth Avenue parent company HBC said Thursday it will acquire Neiman Marcus Group in a $2.65 billion deal that combines the historic retailers.
The combination will create Saks Global, which will include Saks Fifth Avenue, Saks OFF 5TH, the eponymous Neiman Marcus department store chain and Bergdorf Goodman.
“We are delighted to take this step to bring together these iconic luxury brands,” HBC CEO Richard Baker said in a statement. “For years, many in the industry have anticipated this transaction and the benefits it would bring to customers, partners and employees.”
“We're living in an exciting time in luxury retail,” Baker added, citing technological advances that could “redefine” the customer experience. He was one of several executives from the two companies who singled out technology as a focus point going forward.
As part of the deal, Saks.com CEO Marc Metrick will take on the role of CEO of the Saks Global business. Ian Putnam, president and CEO of HBC Properties and Investments, will become CEO of Saks Global's real estate and investments business. Both will report to Baker, who will serve as CEO of Saks Global.
Geoffroy van Raemdonck, CEO of Neiman Marcus Group, called the partnership a “proactive choice in an evolving retail landscape.”
The deal comes amid a turbulent period for brick-and-mortar retail in the wake of the rise of e-commerce. That strain was exacerbated by post-pandemic demand for experiences, which pushed consumers to spend on restaurants or travel rather than on goods they had purchased during lockdown.
The department store segment in particular has struggled to attract younger shoppers amid a broader reduction in discretionary spending.
