NEW YORK (PIX11) – In a monumental move that is poised to redefine the luxury retail landscape, Hudson’s Bay Company, the parent company of Saks Fifth Avenue, has unveiled a game-changing multi-billion dollar acquisition of Neiman Marcus.
Notably, online giant Amazon will also play a significant role in the deal, holding a minority stake and bringing its unparalleled expertise in logistics and personalization technology to the table.
The Hudson’s Bay Company is also acquiring Bergdorf Goodman, a subsidiary of the Neiman Marcus group. The new global entity will be called Saks Global, according to a company spokesperson.
“Saks has remained steadfast in our commitment to be at the forefront of luxury fashion,” current Saks.com CEO Marc Metrick said. “We have respect and admiration for NMG and the contributions its teams have made in the company’s evolution.”
The new mergers are expected to put Saks Global in the position to meet luxury consumers’ expectations by:
- Advancing the luxury shopping experience.
- Serving customers through personalized interactions.
- Supporting established and emerging brands.
- And creating value for employees.
The deal, announced on July 4th, comes after the two department store chains negotiated for about a year. Amazon will work with Saks Global to offer its logistics and personalization technology expertise.
Both Saks and Neiman Marcus have faced significant challenges, with luxury shoppers scaling back on high-end purchases due to inflation and a shift in consumer habits towards experiences like travel and upscale dining.
However, Neiman Marcus has struggled, especially for years since the global COVID-19 pandemic, when the retailer, like others, was forced to shutter its doors during lockdown. The company filed for bankruptcy protection in 2020.
Saks Fifth Avenue operates 39 stores in the U.S., including its Manhattan flagship. It was able to create another separate store online in the hopes of expanding its business after department stores closed for the day.
Saks Global has also acquired Neiman Marcus Group’s real estate assets, including the iconic Fifth Avenue Bergdorf Goodman store.
This story comprises reporting from The Associated Press.
Matthew Euzarraga is a multimedia journalist from El Paso, Texas. He has covered local news and LGBTQIA topics in the New York City Metro area since 2021. He joined the PIX11 Digital team in 2023. You can see more of his work here.
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