HBC Parent Company of Saks Fifth Avenue Acquires Neiman Marcus Group for 265 Billion

CoinWorld reports:
HBC, the parent company of Saks Fifth Avenue, announced on Thursday that it will acquire the Neiman Marcus Group for $26.5 billion, merging these two renowned retailers. The combined entity will be known as Saks Global, encompassing Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus’ eponymous department stores, and Bergdorf Goodman. Richard Baker, CEO of HBC, expressed enthusiasm for bringing these iconic luxury brands together, stating, “We are excited to take this step and unite these iconic luxury brands.” In a statement, he added, “For years, many industry insiders have anticipated this deal and the benefits it will bring to customers, partners, and employees.” Baker further noted, “This is an exciting moment for the luxury retail sector,” citing technological advancements that can “redefine” the customer experience. He, along with several executives from both companies, views technology as a key focus for the future. As part of the deal, Marc Metrick, CEO of Saks.com, will assume the role of CEO for Saks Global, while Ian Putnam, President and CEO of HBC Properties and Investments, will become the CEO of Saks Global’s real estate and investment business. Both will report to Baker, who will serve as Executive Chairman of Saks Global. Geoffroy van Raemdonck, CEO of Neiman Marcus Group, described this collaboration as a “positive choice in the evolving landscape of the retail industry.” This transaction comes amidst turbulence in the traditional brick-and-mortar retail sector following the boom in e-commerce. The post-pandemic demand for experiences has intensified this pressure, leading consumers to spend on dining out or travel, rather than hoarding goods during lockdowns. With discretionary spending significantly reduced, department stores, in particular, struggle to attract younger shoppers.