By Tocca x Shop Black Caviar’s Post

HBC is looking to buy Neiman Marcus, with a little help from Amazon and Salesforce. I'm fascinated by this deal and the history that got us here. HBC came out of a retail holding company created by NRDC Equity Partners. NRDC's first foray into retail was purchasing Lord and Taylor. I worked at Lord and Taylor at the time for a third-party company. Back then, NRDC was focused on real estate and the purchase of Lord and Taylor was a real estate play. It was NRDC's first foray into retail and the rumor was that they were planning on selling off the stores, especially since they paid the amount Lord and Taylor Fifth Avenue was worth. We then heard that they liked retail, eventually purchasing Hudson Bay Company and Saks. Lord and Taylor was eventually sold off to Le Tote, which finally closed it. Right now, from a Porter's Five Forces perspective, the power in luxury retail is with suppliers, with LVMH especially commanding power. The shared purchasing efforts between Saks and Neiman Marcus should help the retailers get more of that power back. https://lnkd.in/gkuYtenf #retail #mergers

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

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

“Mass has a quality of its own” is an adage familiar to military planners and serial strategic acquirers. Yet, in multi-brand retail, where curation and differentiation become ever more important - mass can be a dangerous thing. Large, ostensibly at-scale, retail organizations tend to centralize planning, make merchandising decisions from a vendor matrix rather than what their local customers want, and prioritize cutting costs over generating demand / desire. Just ask Macy’s. There could very well be a compelling investment thesis to merging Saks and NM but the truth of the matter is that neither has been particularly attractive or sufficiently differentiated to luxury consumers in a while. As with Federated and May, a merger might just be the beginning of the work to be done.

The Deal of the Century…. 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. It’s an acquisition that promises to reset the luxury department store landscape. But first, the actual deal has to be put together, and questions about the transaction’s financing have long loomed over the process. Now, it seems the answer might come with a twist. 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.

HBC, Saks Fifth Avenue’s parent company has signed a $2.65 billion deal to acquire Neiman Marcus Group, (which includes Neiman Marcus and Bergdorf Goodman stores) with the new entity to be named Saks Global.   The new organization will comprise Saks Fifth Avenue and Saks OFF 5TH brands, Neiman Marcus, and Bergdorf Goodman, as well as the real estate assets of Neiman Marcus Group and HBC, the holding company that purchased Saks in 2013.  Amazon holds a minority stake and will provide expertise in logistics and personalization technology. Salesforce will also become an investor. This merger aims to create a luxury retail powerhouse, enhancing customer experience with improved AI-driven personalization, offering better access to designer merchandise. The deal is expected to reduce operating costs, increase negotiating power with vendors, and provide financial flexibility for more strategic initiatives.  Read more highlighting the most salient features of the deal below. #saksfifthave #saks #5thave #neimanmarcus #amazon #retailnews #amsterdamassociates

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.

What does the Saks x Neiman Marcus acquisition mean for retail? Hudson's Bay Company (HBC), the parent company of Saks Fifth Avenue, confirmed its acquisition of Neiman Marcus Group, including #NeimanMarcus and Bergdorf Goodman, for $2.65 billion. Interestingly, Amazon will invest in the merged company, SAKS GLOBAL, aiming to innovate in the luxury fashion space by leveraging its technology and logistics capabilities. The deal reflects the evolving retail landscape, where technological advancements and strategic mergers aim to enhance customer experience and drive value for stakeholders. What does this mean for retail? 🛒 Technological Integration: The partnership with Amazon and Salesforce will introduce advanced technology, such as #AI, to enhance the customer experience and operational efficiency. Amazon has been making strides into luxury fashion, including past efforts with the Council of Fashion Designers of America (CFDA), British Fashion Council, and luxury e-commerce, despite some setbacks with physical stores. 🛒 Luxury Retail Landscape Changes: The luxury fashion market has seen significant shifts, with larger brands focusing on direct-to-consumer (#DTC) sales and smaller brands diversifying through drop-shipping and retail media networks. DTC will be a key focus in our upcoming track for Re:Tech Disrupt, and we will certainly discuss this further. 🛒 Concerns about Market Competition: The consolidation positions Saks to compete primarily with Macy's. and raises potential anti-competitive concerns, particularly with the Federal Trade Commission (FTC). The merger could reduce bargaining power for brands, potentially leading to less favorable terms for smaller brands, as the consolidated entity might hold more leverage. 🔗 Read more in Vogue Business, link in comments. 🔗 Sign up for our upcoming Marketing & DTC Track coming up on July 16, link in comments. #Marketing #SaksNeimanMarcus #Saks #Amazon #LuxuryMarketing #DirecttoConsumer #RetailNews

A new era of luxury retail, Saks Global after the recent acquisition of Neiman Marcus Group by the parent company of Saks Fifth Avenue, Hudson's Bay Company (HBC), in a $2.65 billion deal, with significant involvement from Amazon, has substantial implications for the luxury industry. The deal will create a consolidated entity, with Amazon and Salesforce as minority shareholders. Amazon's involvement will provide technology and logistical expertise, while Salesforce will assist with the adoption of artificial intelligence, enhancing operational efficiencies and customer engagement strategies. This partnership aims to leverage advanced technologies to improve the customer experience and streamline operations. Seeing Amazon as a big strategic player for luxury and cosmetics, I believe Amazon has up to 14% of the beauty market in hand. This merger is strategically positioned to strengthen the market presence of both Saks and Neiman Marcus. By combining resources, the new entity aims to better compete with other major luxury retailers like Macy’s and Nordstrom. The integration is expected to yield operational efficiencies and potentially greater bargaining power with luxury brands, which have increasingly gained direct-to-consumer strength. However, the consolidation also presents challenges. The luxury market has faced slower growth recently, particularly in the Americas, due to factors like inflation and shifts in consumer spending patterns post-COVID-19. The merger could strain relationships with high-end brands that may prefer to maintain their direct-to-consumer channels rather than rely on department stores. Additionally, the competitive landscape, dominated by powerful conglomerates like LVMH and Kering, remains fierce. In the end, while the merger under HBC, with support from Amazon and Salesforce, has the potential to revitalize these storied brands and create a more formidable presence in the luxury market, it also carries risks associated with changing consumer behaviors and brand dynamics. Excited to see the future landscape! Sources: - Fox Business - The Independent - Newsmax #LuxuryRetail #RetailNews #BusinessMerger #Ecommerce #TechnologyInnovation #FashionIndustry #LuxuryBrands #Amazon #Salesforce #CustomerExperience #BusinessStrategy #MarketExpansion #RetailTransformation #LuxuryMarket #CorporateStrategy https://lnkd.in/eCfSy-gD