The Saks-Neiman Marcus Megadeal and Amazon’s Underground Path to Luxury

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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 has finally arrived. And as a waiting investor in the combined company, Amazon has found a new path (or underground tunnel) into luxury fashion.

“We are thrilled to take this step to bring together these iconic luxury brands, Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman,” said Richard Baker, executive chairman and CEO of HBC, in a statement. “For years, many in the industry have anticipated this transaction and the benefits it will bring to customers, partners and employees. This is an exciting time in luxury retail, where technological advancements are 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 combine Saks Fifth Avenue, Saks Off 5th, Neiman Marcus and Bergdorf Goodman under one parent, Saks Global; each retailer will continue to operate under its own brands. Current Saks.com CEO Marc Metrick will become CEO of Saks Global.

The interesting development is Amazon’s involvement. Amazon will be an investor and will work with Saks Global “to innovate on behalf of customers and brand partners after the close of the transaction,” according to a statement from HBC. This will give Amazon discreet access to luxury products, stores, retail associates and data. At the same time, retailers will gain access to more advanced technology and logistics; Salesforce, which has been steadily introducing generative AI tools for retailers, will also become an investor.

Amazon, the largest apparel retailer in the U.S., has been working for years to expand into luxury fashion, which has higher margins but is somewhat at odds with Amazon’s ethos of prioritizing efficiency over style. 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 department, recruiting brands like Oscar de la Renta, Jonathan Cohen and Adam Lippes. In 2022, it expanded that effort to Europe, with brands including Christopher Kane and Elie Saab. It sponsored the CFDA Awards in 2023.