HBC, the parent company of Saks Fifth Avenue, has announced its acquisition of Neiman Marcus Group for $2.65 billion. The merger will unite two iconic luxury retailers under one roof.
The new entity, Saks Global, will include Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus and Bergdorf Goodman.
Richard Baker, CEO of HBC, expressed his excitement about the merger, highlighting the benefits it envisions for customers, partners and employees. He emphasized the potential for technological advances to transform the luxury retail experience.
Major leadership changes include Marc Metrick, currently CEO of Saks.com, who will become CEO of Saks Global. Ian Putnam, president and CEO of HBC Properties and Investments, will oversee Saks Global’s real estate and investment businesses, both of which will report to Baker, who will serve as executive chairman.
Geoffroy van Raemdonck, CEO of Neiman Marcus Group, described the merger as a strategic move in response to the evolving retail landscape.
The acquisition comes at a difficult time for traditional retail, which has been impacted by the rise of e-commerce and a shift in consumer spending toward experiences rather than goods. The department store sector, in particular, has struggled to engage younger shoppers and has faced a decline in discretionary spending.