Saks Fifth Avenue Neiman Marcus

Saks Fifth Avenue Neiman Marcus । Saks Fifth Avenue owner buying Neiman Marcus for $2.65 billion

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Saks Fifth Avenue Neiman Marcus । Saks Fifth Avenue owner buying Neiman Marcus for $2.65 billion. The parent company of Saks Fifth Avenue, Hudson Bay Co., announced to the New York Times that it will acquire Neiman Marcus for $2.65 billion, combining the two large, national businesses.

According to the Times, the united company, to be known as Saks Global, will feature 100 off-price shops in addition to a total of 75 stores, including two Bergdorf Goodman sites.

HBC chairman and CEO Richard Baker told the newspaper on Wednesday that “acquiring Neiman Marcus and their world-class sales force was part of what excited us about the acquisition.”

“People no longer recognize the value of people.” Selling luxury goods requires having stunning storefronts and trustworthy salespeople.

The publication said that Amazon is helping to make the sale happen by purchasing a small share in Saks Global. HBC has funded $2 billion to finance the transaction, and affiliates of Apollo Global Management are contributing $1.5 billion in debt.

Retail analyst Neil Saunders of GlobalData stated in a report on Wednesday that the pairing of the upscale department store chains is not surprising, pointing out that executives from Saks and Neiman have been considering a joint venture “for some time.”

However, because it would offer the online retailer a foothold in the luxury market, Amazon’s entry “adds a bit of spice” to the mix.

The true winner here would be Amazon’s capacity to simplify shipping and online sales, which would provide the new company a competitive edge in a market where consumers now value remote purchasing more than ever, particularly younger consumers, whom both chains must work harder to draw in.

According to Bloomberg News, Amazon has made its first investment in a physical business since acquiring Whole Foods in 2017. That investment is in Neiman Marcus. Regarding the proposed merger, Amazon chose not to comment.

1999 saw the separation of Bergdorf Goodman and Neiman Marcus stores from Harcourt General. The business was acquired by private equity firms TPG Capital and Warburg Pincus for $5.1 billion in 2005.

Founded in 1924, Saks is a New York City-based company with 41 stores as of right now. In addition to owning department store brand Lord & Taylor, Hudson Bay, often known as HBC.

Is the parent company of the 1670-founded Canadian department store chain Hudson’s Bay. Saks was acquired by Hudson Bay in 2013 for a total of $2.9 billion, including debt.

In recent years, Saks and Neiman have both had difficulty accelerating expansion. Despite having more negotiating power with labels.

Saks Fifth Avenue Neiman Marcus: The larger company would probably find it difficult to compete with international luxury conglomerates like LVMH and Kering, which might wind up “creating an even bigger headache for Saks,” according to Saunders.

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