Saks Fifth Avenue parent HBC to acquire Neiman Marcus Group

Saks Fifth Avenue dad or mum HBC mentioned on Thursday it’s going to purchase Neiman Marcus Group in a $2.65 billion deal combining the storied retailers.

The mix will set up Saks International, which is able to embrace Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus’ namesake division retailer chain and Bergdorf Goodman.

“We’re thrilled to take this step in bringing collectively these iconic luxurious names,” HBC CEO Richard Baker. mentioned in a press release. “For years, many within the trade have anticipated this transaction and the advantages it might drive for purchasers, companions and workers.”

“That is an thrilling time in luxurious retail,” Baker added, citing technological developments that may “redefine” the client expertise. He was certainly one of a number of executives between the 2 corporations pointing to know-how as a degree of focus going ahead.

As a part of the deal, Saks.com CEO Marc Metrick will take the chief govt function for the Saks International enterprise. Ian Putnam, president and CEO of HBC Properties and Investments, will turn out to be CEO of Saks International’s property and investments enterprise. Each will report back to Baker, who will function govt chairman at Saks International.

Neiman Marcus Group CEO Geoffroy van Raemdonck known as the partnership a “proactive alternative in an evolving retail panorama.”

The deal comes amid what’s been a turbulent interval for conventional brick-and-mortar retail within the wake of the ecommerce increase. That pressure was exacerbated by post-pandemic demand for experiences, which pushed customers to shell out for eating places or journey as a substitute of products they stocked up on throughout lockdown.

The division retailer phase specifically has struggled to draw youthful buyers amid a broader pullback in discretionary spending.