Footwear News’ Post

Is the Neiman Marcus Group acquisition by Saks Fifth Avenue a Luxury Shopping game-changer? Saks Fifth Avenue's parent company, Hudson's Bay Company, is acquiring Neiman Marcus Group for an impressive $2.65 billion! This landmark deal, partially funded by Amazon, along with Rhône Capital and Insight Partners, is set to reshape luxury retail. For those who love #luxury shopping, this is a game-changer. Combining forces means expanded market reach and streamlined operations, enhancing our shopping experiences. With technological advancements redefining retail, this #merger promises exciting innovations. The inclusion of valuable U.S. real estate assets, worth approximately $7 billion, adds a significant financial boost. #Amazon's involvement is particularly intriguing. As an e-commerce leader, Amazon's participation signals a strategic move to strengthen its luxury retail presence. I’m excited to see potential collaborations combining Amazon's tech prowess with Saks and Neiman Marcus's retail expertise. HBC plans to establish Saks Global, encompassing Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman, with each brand operating independently. Additionally, HBC’s Canadian business will be spun off as a standalone entity, focusing on different markets. The luxury retail sector is entering a transformative phase, and I'm eager to see how this deal unfolds and impacts our shopping experiences. What do you think? Will this acquisition bring more luxury and innovation to our shopping experiences, or do you foresee challenges ahead? Share your thoughts in the comments! ⬇ #RetailNews #LuxuryRetail #BusinessAcquisition #acquisition #SaksFifthAvenue #NeimanMarcus #Innovation #CustomerExperience

Looks like this luxury retail marriage is finally going to happen! Cheers! The Saks, Neiman Marcus Megadeal Is Getting Close, Sources Said At long last, it seems Saks Fifth Avenue is going to get Neiman Marcus to the chapel. Sources told WWD that the on-again, off-again takeover talks that restarted last summer are in their final stages and are expected to result in Saks and Neiman Marcus coming together in a roughly $3 billion deal in the next month. The funds for the deal are said to be coming from at least two unusual sources — Europe e-commerce giant Zalando and Indian retail and real estate player Reliance. #luxury #retail #takeover #Saks #NeimanMarcus https://lnkd.in/gCZb3SZJ

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

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

"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.

The evolution of retail property continues. Phygital is the new normal. Physical stores are better off with an online presence and online retailers are better off chasing the 87% of transactions that are in store. #retail #phygital

🚀 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!

Saks Fifth Avenue & Amazon to buy Neiman Marcus Group for $2.65 Billion The acquisition of Neiman Marcus Group makes Saks Global, as the new group will be called, the dominant player in its market, with a combined 75 stores (including two Bergdorf Goodman locations), as well as 100 off-price outlets. The new group’s only real rivals in the United States will be Macy's which includes Bloomingdale's, and Nordstrom. Amazon will take a minority stake in the new company and will provide technology and logistical expertise. Another minority shareholder is Salesforce. Interesting to see large tech and e-commerce companies continue to invest in brick & mortar retail... https://lnkd.in/gi-zQ3R2 #retailrealestate #luxaryretail #consumerspending #cbre #amazon #saks #neimanmarcus