Jessica Couch’s Post

Everyone's trying to figure out what the Saks Fifth Avenue acquisition of Neiman Marcus Group is going to mean in the luxury market. I took a look and here's how I read it, in my latest Forbes.com post with Warren Shoulberg Richard Kestenbaum Marc Metrick Pete Nordstrom Nordstrom #luxuryretail #luxurymarket #mergersandacquisition #luxuryconsumers #luxurycustomers #luxuryshopping

Luxury Retail Shakeup! ️ Saks Fifth Avenue Acquires Neiman Marcus! #Fashion #Retail #Merger BREAKING NEWS! In a major move that redefines luxury shopping, Saks Fifth Avenue has acquired Neiman Marcus, uniting two fashion giants! This historic $2.65 billion deal (not $1.1 billion) brings together their iconic brands and merges their stores, websites, and legacies. Why the Shakeup? Both Saks and Neiman Marcus have faced challenges adapting to the digital age. This strategic move by Saks' parent company, Hudson's Bay Company, strengthens their foothold in luxury retail. What's Next? The combined powerhouse will operate under the Saks Fifth Avenue name, offering an even more expansive luxury experience. Expect seamless integration of Neiman Marcus's inventory and loyal customer base. Benefits Galore! This merger promises major cost savings and a stronger online presence, allowing them to compete fiercely with digital giants and other luxury retailers. It's a win-win for both companies and the future of luxury shopping! A Retail Revolution! With the retail landscape constantly evolving, this historic acquisition marks a new era for Saks Fifth Avenue and shapes the future of luxury shopping! Stay tuned for updates! What are your thoughts on this fashion fusion? #SaksFifthAvenue #NeimanMarcus #LuxuryRetail https://lnkd.in/dq7MqXBM

"On the surface, this appears to be a good match," says Mark Ryski, Author, CEO & Founder of HeadCount Corporation. "Combining efforts could indeed result in some meaningful synergies between the retailers. And notwithstanding the current softness in luxury spending — which is prone to ebbs and flows over time — I believe there is a place in the landscape for luxury department offering. However, my concern is the financial strength of Saks to undertake the merger. Selling real estate to catch-up on late payments to suppliers is hardly a sign of financial strength. Neiman Marcus is right to be cautious. Now if the LVMH came calling on Neiman Marcus, that would be a completely different story." Check out more insights from one of the retail industry’s leading experts - https://buff.ly/3qRfPx2. More great comments on this topic by RetailWire's BrainTrust experts including: Neil Saunders, Mohamed Amer, Ph.D., Ken Morris, Lucille DeHart, Jeff Sward, Nikki Baird, David Bruno, Gary Sankary, Mark Self, Brandon Rael, John Lietsch, Joan Treistman, Mohammad Ahsen (Socially Ahsen), Dick Seesel, • Shep Hyken, Patricia Vekich Waldron, Verlin Youd, and Anil Patel.

Things are hotting up in the east vs west battle for global dominance of the premium department store space. Hudson's Bay Company owned Saks Fifth Avenue merging with Neiman Marcus Group further cements Richard Baker’s ambitions to create the ultimate global luxury department store conglomerate. How stable mates Hudson's Bay and GALERIA Karstadt Kaufhof GmbH will be involved in this is not yet clear but the involvement of tech behemoths Amazon and Salesforce in this move is the ultimate enabler for global consolidation in both the physical and digital space. Given the collapse of FARFETCH, the questionable future of NET-A-PORTER, and the resurrection of the department store as brand aggregator, there is a void here to be exploited for sure. Currently the Thai giant Central Group leads the field in this, linking Selfridges group, THE KADEWE GROUP, DeBijenkorf BV, Brown Thomas Arnotts , Rinascente ILLUM GLOBUS CRG and Robinsons Retail Holdings Inc. On a market by market basis there has been little cross over, other than Germany, but the digital space could see a direct battleground. Perhaps a purchase of YOOX NET-A-PORTER might be a logical place for one of them to go next? https://lnkd.in/eaxV8AXX

The parent company of Saks Fifth Avenue has finalized a $2.65 billion acquisition of Neiman Marcus, creating a formidable entity in luxury retail. This move aims to attract wealthy shoppers with support from Amazon, which is taking a minority stake and offering technological and logistical expertise. Salesforce also holds a minority stake. The merged entity, named Saks Global, will have $10 billion in annual sales and over 150 locations, including Saks Fifth Avenue, Saks OFF 5th, Neiman Marcus, and Bergdorf Goodman. Both companies have faced challenges as consumer spending on luxury goods has declined and fashion brands have opened their own flagship stores. This deal, financed by $2 billion from existing investors such as Rhône Capital and Apollo Global Management, along with $1.15 billion in debt financing, is a strategic attempt to consolidate resources and strengthen market presence. Marc Metrick, CEO of Saks’s e-commerce business, will lead the combined company. Stores will retain their brand names. Richard Baker, HBC’s executive chairman, will serve as Saks Global executive chairman. The merger is seen as beneficial for customers, partners, and employees, with no immediate plans to close stores. This transaction is significant given the backdrop of struggling department stores. Neiman Marcus emerged from bankruptcy in 2020, and HBC has been restructuring to maintain liquidity, including raising $340 million through real estate sales. The luxury market has faced headwinds, with inflation impacting sales, especially in the Americas. With a stronger unified front, Saks and Neiman Marcus aim to negotiate better terms with suppliers and reduce costs. This deal positions Saks Global to navigate the evolving luxury market landscape more effectively. Saks Fifth Avenue and Neiman Marcus have long been iconic names in American luxury retail, with rich histories dating back over a century. The luxury market has seen shifts, particularly post-COVID-19, with changes in consumer spending and the rise of direct-to-consumer brands. Department stores face increasing pressure from both the e-commerce boom and the need for physical store optimization. Amazon and Salesforce’s involvement highlights the importance of technological integration in modern retail strategies. #LuxuryRetail #SaksFifthAvenue #NeimanMarcus #Amazon #MergersAndAcquisitions #RetailNews #LuxuryMarket #DepartmentStores #FashionIndustry #Ecommerce #BusinessNews https://lnkd.in/eEwbAk6T

With the dust selling on the announcement that Saks and Neiman Marcus will merge, many businesses and brands are trying to understand the impact of the two firms coming together. It was great to chat with Beauty Independent about what the deal potentially means for the beauty sector and the brands selling to either or both department store businesses. One of the key takeaways is that while both stores operate in the luxury space, they each have their own positions and customers so there won’t be a merger of the propositions. Brands will still need to understand the nuances and specifics of each business. More in the article: https://lnkd.in/eksUQ2KX #retail #retailnews #departmentstores #beauty #luxury

Now official: HBC, parent company of Saks Fifth Avenue, has entered into a definitive agreement to acquire Neiman Marcus Group, parent company of Neiman Marcus and Bergdorf Goodman, for a total enterprise value of $2.65 billion. Key points: 🔑 Upon transaction close, HBC will establish Saks Global, a combination of world-class luxury retail and real estate assets, including Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus and Bergdorf Goodman, each of which will continue operations under their respective brands. 🔑 Amazon will be an investor in and work with Saks Global to innovate on behalf of customers and brands partners following the close of the transaction. 🔑 Global software investor, Insight Partners, an investor in Saks.com, will be a shareholder in the new company. Salesforce will also become an investor at closing. 🔑 Upon closing of the transaction, HBC’s Canadian business will be recapitalized as a standalone entity, separate from Saks Global. 🔑 Current Saks.com CEO Marc Metrick will become CEO of Saks Global, leading Saks Global’s retail and consumer businesses. 🔑 Ian Putnam, currently President and CEO of HBC Properties and Investments, will become CEO of Saks Global Properties and Investments. https://lnkd.in/e2a4HJZX #retail #retailnews #luxury #departmentstores #fashion

The $2.65 billion Saks-Neiman Marcus merger signals a major shift in luxury retail, emphasizing technological innovation to redefine customer experiences. As this consolidation unfolds, there's a pressing need for agile talent management strategies. Retailers should proactively assess their workforce needs, considering temporary hires with tech expertise to navigate the transition and drive digital transformation in this evolving luxury landscape.

Luxury retail evolves beyond! Dive into the recent transformations and challenges faced by Neiman Marcus and Saks Fifth Avenue. Despite bankruptcy in 2020, Neiman Marcus has rebounded with a solid balance sheet and strategic investments in supply chain and personalization. Saks, under HBC, separated its e-commerce and brick-and-mortar businesses in 2021, emphasizing profitability in its digital arm. Both CEOs, Geoffroy van Raemdonck, and Marc J. Metrick, highlight the importance of adaptability and financial resilience in navigating the ever-changing luxury retail landscape. Discover the strategies driving success in this dynamic retail market in the article below. #LuxuryRetail #Adaptability #FinancialResilience #StrategicInvestments #amsterdamassociates 

I think the impact of these two industry luxury leaders will be very interesting to watch. This article focuses more on the beauty side, but there are many less obvious impacts this will have on multiple industries. Jewelry, apparel, accessories, marketing, the list goes on. When you take two known names and structure them to be more profitable and leverage the best of the branded and marketing teams, get ready for an explosion of growth potential. This will also add to an even further divide in the retail sector between department stores following the wealth division in the US. Naming the large department stores now, Saks Fifth Avenue/Neiman Marcus Group, Nordstrom, Dillard's Inc., Von Mauer, Macy's, JCPenney, Kohl's, then discounters.... not many national choices but they all have very focused demographic groups. Stay tuned!