Saks Fifth Avenue store at Waterside Shops.
John Grimm | Light Rocket | Getty Images
HBC, the parent company of department store chain Saks Fifth Avenue, said Thursday it will acquire Neiman Marcus Group in a $2.65 billion deal that brings together the two legacy retailers.
The merger will create Saks Global, which will include Saks Fifth Avenue, Saks Off 5th, Neiman Marcus and Bergdorf Goodman.
“We are delighted 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 deal and the benefits it will bring to customers, partners and employees.”
“This is an exciting time in luxury retail,” Baker added, citing technological advances that could “redefine” the customer experience. He was one of several executives from both companies who pointed to technology as a focus for the future.
As part of the deal, Mark Metrick, CEO of Saks.com, will become CEO of Saks Global. Ian Putnam, chairman and CEO of HBC Real Estate & Investments, will become CEO of Saks Global Real Estate & Investments. Both will report to Baker, who will become CEO of Saks Global.
The partnership is a “proactive choice in an evolving retail landscape,” said Geoffroy van Raemdonk, CEO of Neiman Marcus Group.
The deal comes amid a turbulent period for traditional retail in the wake of the e-commerce boom. That pressure has been exacerbated by a post-pandemic demand for experiences, which has led consumers to spend money on restaurants or travel instead of the goods they stockpiled during lockdown.
The department store segment in particular has struggled to attract younger shoppers amid a broader decline in discretionary spending.
