Hudson's Bay Company, owner of Saks Fifth Avenue, acquires Neiman Marcus for $2.65 billion with support from Amazon
- Hudson's Bay Company, the parent company of Saks Fifth Avenue, has purchased the luxury retailer Neiman Marcus for $2.65 billion.
- The deal was facilitated with assistance from Amazon, a multinational technology company.
- Neiman Marcus had previously faced financial challenges, including bankruptcy in 2020 due to debt struggles and pandemic-related store closures.
In a significant move in the luxury retail sector, Hudson’s Bay Co., the owner of Saks Fifth Avenue, has successfully completed a $2.65 billion acquisition of Neiman Marcus. This acquisition, as reported by The Wall Street Journal, aims to merge Saks and Neiman Marcus with the assistance of tech giants Amazon and Salesforce, amidst a challenging personal luxury market. The deal involves Amazon and Salesforce taking minority stakes in the newly formed company, Saks Global, which will bring together 39 Saks Fifth Avenue stores and 36 Neiman Marcus stores under one entity. The merger, financed with $2 billion raised by Hudson’s Bay from investors, marks a strategic move to revitalize the luxury retail landscape. The combined company is expected to have around $10 billion in annual sales, with Amazon providing technological and logistical support. Marc Metrick, the chief executive of Saks’s e-commerce business, is set to lead the merged companies. The involvement of Amazon in the luxury space is seen as a significant development, potentially enhancing the new entity's e-commerce capabilities and attracting a younger demographic of shoppers. The acquisition of Neiman Marcus by Hudson’s Bay represents a consolidation of power in the luxury retail sector, with the combined entity, Saks Global, boasting a substantial retail real estate portfolio. HBC CEO Richard Baker expressed enthusiasm about uniting the iconic luxury brands of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. The involvement of Apollo Global Management in offering $1.5 billion in debt further underscores the financial backing behind this deal. The merger between Saks Fifth Avenue and Neiman Marcus comes at a crucial time when consumer preferences are evolving, demanding greater access to designer products and personalized shopping experiences. The historical significance of Neiman Marcus, founded in 1907, adds a layer of tradition to this modern business move. With the retail landscape constantly evolving, the collaboration between these luxury giants and tech innovators like Amazon signals a strategic shift towards meeting the changing demands of luxury consumers in the digital age.