Optimum Retailing (OR)’s Post

The Wall Street Journal is out with some interesting news: Saks Fifth Avenue is buying Neiman Marcus Group. The interesting twist is that Amazon is helping finance the deal and providing #technology to the newly combined company! This will be interesting to watch going forward. What do you think? #management #venturecapital #privateequity #commercialrealestate #capitalmarkets #ecommerce #retailtechnology #cloudcomputing

Exciting news in the world of luxury and technology. Saks Owner (Hudson's Bay Company) will buy Neiman Marcus Group. ◾ The Wall Street Journal indicates Amazon will take a minority stake in the new co (Saks Global) and would provide technology & logistical expertise - note, this has NOT been confirmed by Amazon. ◾ The boards of Saks parent HBC and Neiman Marcus have approved the transaction, and an announcement could come as soon as this evening. - WSJ ◾ This will be a huge win for Richard A Baker of HBC, a creative deal maker, that's looked at Neiman's over the years. https://lnkd.in/gt_ivMC9 #futureofretail #futureofcommerce #fashion #technology #brands #luxury #businessnews #futureofcustomerexperiences #retail

It didn’t come as a surprise but Saks Fifth Avenue announced they would purchase Neiman Marcus Group with a little help from Amazon and Salesforce which will have a minority share. The negotiations have been on the table for months. Both department stores will continue to operate under their own banners. What i found interesting is who will lead both companies which is Marc Metrick who is CEO of Saks Ecommerce business. Does this mean they care less about the physicals stores by not putting a true merchant and care more about their online business. When experience is such an important component of the luxury experience this seems like a strange appointment. All the chains under Hudson's Bay Company and other department stores have been struggling as more luxury brands focus on their direct to consumer play by opening their own stores and web-sites and the struggle of the aspirational shoppers. #mergersandacquisitions #departmentstores #luxuryretail #retail

Well this just got interesting 🤔 A few thoughts: 🔸Luxury sales are declining. What could this mean for the future of luxury and DTC? 🔸 What will this mean for Saks 🇨🇦 that has seen a significant drop in sales, footfall and relevance. 🔸 Will Hudson's Bay Company finally be divested and sold off? 🔸 Will Amazon’s success have any impact on improving Saks and NM operations/supply chain? 🔸 How will buying power be impacted in merchandising? 🔸 Will any functions or teams be combined since many brands across stores overlap? 🔸 Salesforce also threw in some cash to assist in the adoption of AI. Saks Fifth Avenue Neiman Marcus Group Amazon Suzanne Kapner Lauren Thomas The Wall Street Journal Salesforce #retail #retailnews #fashion #luxury #stores #departmentstores

In case you missed Sunday's Highlights by Miss Tweed SAKS BUYS NEIMAN MARCUS GROUP IN $2.65 BLN DEAL Together we are stronger. That’s what department store chains Saks Fifth Avenue and Neiman Marcus have been thinking for more than a decade and this week finally agreed to tie the knot. The owners of Saks have agreed to acquire Neiman Marcus Group for $2.65 billion in a deal that should help America’s two biggest department store groups better survive the current downturn by sharing costs, customers and stock. It's a deal that also gives Amazon a long looked for entrance into luxury. Online giants Amazon and Salesforce are taking a minority stake in the newly combined entity called Saks Global. The size of their investment was not revealed. The plan is to use Amazon and Salesforce’s technology to improve the retailers’ websites and make it easier for consumer to search for products. Read more: https://lnkd.in/ekwgcz5C Marc Metrick Nicole J. Schoenberg Geoffroy van Raemdonck #retail #departmentstores #fashion #luxury

I too have mixed feelings about this merger. I am particularly concerned about the complexity of managing multiple high-end brands under one umbrella. Maintaining distinct identities for Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue, and Saks Off 5th could be challenging, although differentiation is key. The new entity may also struggle to compete with global luxury conglomerates like LVMH and Kering, which could limit its growth potential. Overall, while the merger brings opportunities for operational efficiencies and market leverage, it also poses significant challenges in brand management and market positioning. Let’s hope this does not end up like the YOOX - Net A Porter merger. #luxury #departmentstores #neimanmarcus #saks #misstwid

can I just say I never imagined I would read these words, nor even conceive Neiman Marcus, Saks and Amazon would ever be in the same sentence! This will be interesting to monitor! From the article: "The parent of Saks Fifth Avenue sealed a $2.65 billion deal to buy rival Neiman Marcus, according to people familiar with the matter, creating a powerhouse in luxury retailing that seeks to hang onto wealthy shoppers—all with a little help from Amazon.com." Saks Owner to Buy Neiman Marcus, With Help From Amazon https://lnkd.in/e5zz3w-N

The Wall Street Journal, Saks Owner to Buy Neiman Marcus—With Help From Amazon. Retail rivals to combine in $2.65 billion deal to woo luxury shoppers. The parent of Saks Fifth Avenue sealed a $2.65 billion deal to buy rival Neiman Marcus, according to people familiar with the matter, creating a powerhouse in luxury retailing that seeks to hang onto wealthy shoppers—all with a little help from Amazon.com AMZN -1.21%decrease; red down pointing triangle . The boards of both companies have approved the transaction and an announcement could come as soon as this evening, the people said. The department-store chains had been negotiating for months and had explored a combination several times over the years. Both have struggled as some consumers spent less on pricey goods and fashion brands opened their own flagship stores. The combined company would have about $10 billion in annual sales, the people said. Luxury behemoth LVMH Moët Hennessy Louis Vuitton, which owns Louis Vuitton and dozens of other brands, had sales of about $94 billion last year. Amazon would take a minority stake in the new company, which will be called Saks Global, and plans to provide it with technology and logistical expertise, the people said. Salesforce is another minority shareholder. Saks already does business with both tech companies, so the transaction would deepen existing partnerships, one of the people said. HBC, a holding company that bought Saks in 2013, is financing the deal with $2 billion it raised from existing investors, the people said. They include Rhône Capital, the Abu Dhabi Investment Council and NRDC Equity Partners, a private-equity firm run by Richard Baker, HBC’s executive chairman, and his son Jack Baker. Affiliates of Apollo Global Management APO -0.20%decrease; red down pointing triangle are providing $1.15 billion in debt financing. By Suzanne Kapner and Lauren Thomas #retail #thefutureofretail #luxuryretail #jobs #management https://lnkd.in/eT5qEiWk

🚀 Big News Alert: Saks Buys Neiman Marcus with a Boost from Amazon! 🚀 Hey everyone! Just had to share this HUGE update in the luxury retail world. Saks Fifth Avenue’s parent company is dropping $2.65 billion to scoop up Neiman Marcus, and guess what? Amazon’s in on the action, bringing their tech and logistics game. 🛍️✨ Here’s the Tea: • Power Move: Merging two luxury legends to create a mega retail powerhouse. • Tech Boost: With Amazon on board, expect next-level tech integration for a seamless shopping experience, both online and offline. • Big Bucks: Financed by top-tier investors like Rhône Capital and the Abu Dhabi Investment Council, plus $1.15 billion in debt from Apollo Global Management. • Market Shakeup: The new combo will hit around $10 billion in annual sales, giving them major leverage with suppliers and streamlining costs. Why It’s a Big Deal: This merger shows how vital tech and partnerships are in today’s retail scene. It’s proof that luxury retail is evolving and adapting, even when times are tough. For investors, this move is a clear sign of confidence in the luxury sector’s future and the potential for new opportunities. Big things are coming, and I am excited to be part of this evolving industry. Stay tuned for more updates as we keep pushing the boundaries in luxury retail!

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