HBC has confirmed that its long-awaited deal to acquire rival Neiman Marcus Group, owner of Neiman Marcus and Bergdorf Goodman, will finally go ahead. The 2.65 billion US dollars transaction will create Saks Global, a combined entity of Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, Bergdorf Goodman and other luxury retail and real estate assets. Each brand will continue to operate under its current name.

The deal comes at a time when luxury retailers are struggling with slowing demand as high interest rates and inflation have forced shoppers to tighten their budgets after a post-pandemic luxury boom. Saks Global is expected to help meet the increasing demands of luxury consumers for a highly personalised and seamless shopping experience, with greater opportunities for product discovery across all channels.

“We’re thrilled to take this step in bringing together these iconic luxury names, Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman”, commented Richard Baker, HBC Executive Chairman and CEO. “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”, he concluded.

HBC also reported that Amazon will be an investor in “and will work with Saks Global to innovate on behalf of customers and brands partners following the close of the transaction”. This will provide retailers with access to more sophisticated technology and logistics while giving Amazon access to luxury products, stores, sales staff and data. Also becoming an investor is Salesforce, which has been developing generative artificial intelligence tools for retailers.