Advertisement
This is member-exclusive content
icon/ui/info filled

businessRetail

Luxury department stores Neiman Marcus and Saks Fifth Avenue confirm $2.65 billion buy

The luxury retail combination will have more than 75 flagship stores nationwide in some of the most coveted high-end spaces.

Iconic Dallas-based luxury department store chain Neiman Marcus will be sold to the parent company of rival Saks Fifth Avenue in a $2.65 billion deal, the two companies confirmed Thursday, a day after the sale was first reported.

The deal will end more than 115 years of Neiman Marcus being run from Dallas — from its humble beginnings in the downtown district to becoming a global luxury leader. News of the deal was originally reported Wednesday afternoon by the Wall Street Journal, citing sources close to the transaction. The companies made the transaction public on Thursday.

Saks owner HBC has tapped Saks.com CEO Marc Metrick to become CEO of the combined company known as Saks Global, which will include Saks Fifth Avenue, discount concept Saks OFF 5th, Neiman Marcus, Neiman Marcus Last Call and Bergdorf Goodman stores.

Advertisement
D-FW Retail News

The latest on retail openings, closings and trends in D-FW.

Or with:

As previously reported by the WSJ, online retail giant Amazon will join as an investor “and work with Saks Global to innovate on behalf of customers and brands partners following the close of the transaction,” the companies said.

“We’re thrilled to take this step in bringing together these iconic luxury names, Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman,” said 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.”

Advertisement

Neiman Marcus has 36 brick-and-mortar stores, two Bergdorf Goodman stores in Manhattan and five discount Neiman Marcus Last Call stores. That includes five Neiman Marcus stores in the Dallas-Fort Worth market. The company has about 10,000 employees nationwide.

Luxury retail rival Saks Fifth Avenue, which was started in New York City, has 41 stores nationwide for its flagship department store brand and 100 of its Saks Off 5th discount brand.

The combined entity will control about $7 billion of real estate in some of the country’s most coveted high-end retail destinations. HBC named Ian Putnam, president and CEO of HBC Properties and Investments, to be the CEO of the luxury retailers’ property arm “which will manage, maximize and enhance the company’s robust portfolio of assets.”

Advertisement

Both Putnam and Metrick will report to Baker, executive chairman of Saks Global.

It is unclear if Neiman Marcus CEO Geoffroy van Raemdonck will have any role in the new company and what Saks Global will do with Neiman Marcus’ administrative headquarters at the CityPlace Tower in Uptown Dallas. Neiman Marcus and Saks Fifth Avenue have not returned multiple requests for comment regarding the transaction.

“This announcement is a testament to our team’s unwavering commitment to building rewarding customer relationships, driven by our differentiated business model,” van Raemdonck said in a statement. “We believe this is a proactive choice in an evolving retail landscape that will create value for our customers and brand partners. Saks Fifth Avenue shares our passion for connecting customers with the world’s best luxury fashion. With our complementary capabilities and a new long-term capital structure, the combined group will position our iconic Neiman Marcus and Bergdorf Goodman brands for continued success.”

Neiman Marcus was founded in 1907 by Herbert Marcus Sr., his sister Carrie Marcus Neiman and her husband A.L. Neiman at the corner of Elm Street and Murphy Drive in downtown Dallas, just blocks from the current flagship store at Commerce and Ervay streets. The luxury retail department store has become known for introducing luxury designers to American shoppers, as well as its lavish and aspirational Christmas Book.

Neiman filed for bankruptcy protection in 2020 and emerged with a new set of owners including Pacific Investment Management Co., Davidson Kempner Capital Management and Sixth Street Partners.

Staff writer Irving Mejia-Hilario contributed to this report.

Related Stories
Read More
Kimberly-Clark's continual transformation, which began in the early 1970s, has kept the...
Weaker tissue and TP demand hits Kimberly-Clark earnings
Irving-based Kimberly-Clark Corp., the owner of the Kleenex brand, reported quarterly sales that trailed estimates, partially driven by retailers lowering their stocks of the company’s bath tissue and intensifying private-label competition.
A Costco Wholesale warehouse on 8055 Churchill Way, on April 13, 2023 in Dallas, Texas.
Costco plots new store in fast-growing Forney
Warehouse club chain Costco is working to put a new store in the Kaufman County town of Forney, one of the fastest-growing cities in the country.
Brookshire Grocery Co. operates 108 Brookshire's stores in Texas, Louisiana and Arkansas....
What Dallas-Fort Worth stores are closed after the global CrowdStrike cyber outage?
Some Brookshire Grocery Co. stores are temporarily closed, though other chains say they haven’t been impacted.