What: Neiman Marcus Group (NMG) has terminated its commercial relationship with Farfetch following the latter's acquisition by Coupang. This decision affects plans for re-platforming the Bergdorf Goodman website and app, as well as the inclusion of Neiman Marcus and Bergdorf Goodman in the Farfetch online marketplace.

Why it is important: This move signals a significant shift in NMG's strategy for expanding its digital and e-commerce capabilities, especially regarding its international e-commerce ambitions. With Farfetch now under Coupang's control, NMG must seek alternative technological solutions to achieve its goals of engaging in e-commerce internationally and enhancing the luxury retail experience.

Neiman Marcus Group's decision to end its working partnership with Farfetch comes as a response to Farfetch's financial struggles and subsequent acquisition by Coupang. The partnership was initially aimed at leveraging Farfetch's technology and services to expand Bergdorf Goodman's and potentially Neiman Marcus's e-commerce presence internationally. Despite the termination of this partnership, NMG remains committed to investing in technology to support its digital transformation and international e-commerce ambitions. Farfetch, now stabilized by Coupang's investment, continues to work with numerous brands and boutiques worldwide, focusing on providing an elevated online luxury experience. As NMG explores alternative tech solutions, the future of Farfetch's minority stake in NMG and the broader implications for both companies' digital strategies remain to be seen.

Neiman Marcus Group severs commercial ties to Farfetch