Saks Fifth Avenue’s parent, along with Amazon, will buy rival department store chain Neiman Marcus in a $2.65 billion deal.
Richard Baker, CEO and President of HBC, said The New York Times said the company “does not plan to close any stores or digital businesses or reduce services in any way,” despite several chains operating in the same markets.
Part of the appeal is the in-person touch, Baker said. “Customers want to go to the store,” he said. “They want to touch a product and spend time with their personal shoppers.”
Neiman Marcus’ sales force was also impressive. “People have forgotten how important people are. When it comes to selling luxury goods, beautiful shops and sellers need to be trusted by customers,” he said.
The deal was first announced Wall Street Journal.
The two chains have been in talks for months and have explored the deal several times in recent years, the newspaper said. The combination could face regulatory scrutiny as the Federal Trade Commission takes a hard look at consolidation in fashion retail.
People familiar with the transaction said the combined company would have about $10 billion in annual sales.
Amazon will take a minority stake in the new company and provide technology and logistics expertise, the Wall Street Journal reported. The new company will be called Sachs Global. Another minority shareholder is Salesforce, the paper said.
HBC, a holding company that owns Sak’s and Hudson’s Bay, is financing the deal with $2 billion raised from existing investors, the Wall Street Journal reported. HBC did not respond to a request for comment.
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Mark Metrick, chief executive of Zack’s e-commerce business, will run the combined companies, the magazine said.
Betty Lynn-Fisher is a consumer reporter for USA TODAY. Reach out to her [email protected] Or follow her on X, Facebook or Instagram @blinfisher. Sign up for our free Daily Money newsletter, which includes consumer news on Fridays,Here.
