New York, New York – Luxury retail giants Saks Fifth Avenue and Neiman Marcus Group are set to merge in a $2.65 billion deal, forming a new entity known as Saks Global. The acquisition marks a significant move in the highly competitive luxury retail market, with both companies bringing their storied history and prestigious brands to the table.

HBC CEO Richard Baker expressed his excitement about the merger, highlighting the anticipated benefits for customers, partners, and employees of both companies. The formation of Saks Global will bring together iconic names in the luxury retail sector, including Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus’ flagship department store chain, and Bergdorf Goodman.

The new partnership comes at a crucial time for luxury retail, with the industry undergoing rapid technological advancements that are reshaping the customer experience. Both companies are focusing on leveraging technology to drive growth and innovation in the evolving retail landscape, with a keen eye on meeting the changing demands of consumers in a post-pandemic world.

As part of the deal, Saks.com CEO Marc Metrick will step into the role of chief executive for Saks Global, while Ian Putnam, president and CEO of HBC Properties and Investments, will lead the property and investments arm of the business. Richard Baker will serve as the executive chairman of Saks Global, overseeing the strategic direction of the combined entity.

Neiman Marcus Group CEO Geoffroy van Raemdonck emphasized the proactive nature of the partnership in response to the challenges faced by traditional brick-and-mortar retailers in the wake of the ecommerce boom. The luxury retail sector has been grappling with shifting consumer preferences and increased competition, requiring companies to adapt and innovate to stay ahead in the market.

The merger between Saks Fifth Avenue and Neiman Marcus Group reflects a broader trend in the retail industry, as companies seek to navigate the changing landscape and meet the demands of a new generation of consumers. By joining forces, the two luxury retailers aim to bolster their market position, capitalize on synergies, and drive growth in an increasingly competitive environment.