Saks Fifth Avenue store in the Waterside Shops.
John Greim | Lightrocket | Getty Images
HBC, the parent company of Saks Fifth Avenue, announced Thursday that it will acquire Neiman Marcus Group in a deal valued at $2.65 billion, combining the two renowned retailers.
The merger will create Saks Global, which includes Saks Fifth Avenue, Saks OFF 5TH, the eponymous department store chain Neiman Marcus and Bergdorf Goodman.
“We are excited to take this step to bring these iconic luxury names together,” 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.”
“This is an exciting time in luxury retail,” Baker added, citing technological developments that could “redefine” the customer experience. He was one of several executives from the two companies who pointed to technology as a focus for the future.
As part of the deal, Saks.com CEO Marc Metrick will assume the role of chief executive of Saks Global’s operations. Ian Putnam, president and CEO of HBC Properties and Investments, will become CEO of Saks Global’s real estate and investment businesses. Both will report to Baker, who will serve as executive chairman of Saks Global.
Geoffroy van Raemdonck, CEO of Neiman Marcus Group, called the partnership a “proactive choice in a changing retail landscape.”
The deal comes amid a turbulent period for traditional brick-and-mortar retailers in the wake of the e-commerce boom. That pressure has been exacerbated by demand for post-pandemic experiences, with consumers spending more on restaurants or travel than on goods they stocked up on during lockdown.
The department store segment in particular is struggling to attract younger customers as spending continues to decline.