Saks Fifth Avenue is buying Neiman Marcus with Amazon’s help
CNN
Saks Fifth Avenue and Neiman Marcus plan to create a luxury department store empire. And Amazon wants to help.
Saks Fifth Avenue and Neiman Marcus are merging to create a luxury department store empire. And Amazon wants to help. Saks owner HBC announced a deal Thursday to acquire Neiman Marcus for $2.65 billion, establishing a luxury behemoth called Saks Global that has the two namesake department stores plus Saks Off 5th discount store and the upscale Bergdorf Goodman. “We’re thrilled to take this step in bringing together these iconic luxury names, Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman,” said HBC CEO Richard Baker in a release. The two companies have been linked to merger talks for years, and the deal gives them more leverage to negotiate with luxury brands for lower costs. Saks has 39 stores, while Neiman Marcus, which filed for bankruptcy in 2020, has 36 stores. Neiman Marcus also owns Bergdorf Goodman. Several leadership changes were also announced. Current Saks.com CEO Marc Metrick will become the CEO for the Saks Global business. Current HBC Properties and Investments CEO Ian Putnam will become CEO of Saks Global’s property and investments business. Both of them will report to Baker, who becomes the executive chairman of Saks Global. The merger means that HBC’s Canadian business, which includes Hudson’s Bay department stores and $2 billion in property across the country, will operate separately from Saks Global. The unit “will be well positioned to support future growth, while continuing to serve its loyal Canadian base,” the release said.