Sign up to receive the Vogue Business newsletter for the latest luxury news and insights, plus exclusive membership discounts.
HBC, the parent company of luxury retailer Saks Fifth Avenue, has confirmed reports that its long-awaited deal to acquire rival Neiman Marcus Group — owner of Neiman Marcus and Bergdorf Goodman — for $2.65 billion is finally here. And as a pending investor in the merged company, Amazon has found a new path (or underground tunnel) into luxury fashion.
“We’re thrilled to take this step in bringing together these iconic luxury names, Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman,” said Richard Baker, HBC executive chairman and CEO, in a statement. “For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees. This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees.”
The deal will see Saks Fifth Avenue, Saks Off 5th, Neiman Marcus and Bergdorf Goodman come together under one parent, Saks Global; each retailer will continue to operate under its respective brand names. Current Saks.com CEO Marc Metrick will become CEO of Saks Global.
An interesting development is Amazon’s involvement. Amazon will be an investor in and work with Saks Global “to innovate on behalf of customers and brands partners following the close of the transaction”, a release issued by HBC reads. This will give Amazon discrete access to luxury products, stores, sales associates and data. At the same time, the retailers stand to gain access to more sophisticated technology and logistics; Salesforce, which has been steadily rolling out generative artificial intelligence tools for retailers, will also become an investor.
Amazon, the largest clothing retailer in the US, has for years worked to expand into luxury fashion, which has higher margins but is somewhat at odds with Amazon’s efficiency-over-style ethos. During the pandemic in 2020, it brokered deals with the Council of Fashion Designers of America and the British Fashion Council to start a new luxury stores division, recruiting brands including Oscar de la Renta, Jonathan Cohen and Adam Lippes. In 2022, it expanded that effort to include Europe, with brands including Christopher Kane and Elie Saab. It sponsored the CFDA awards in 2023.
