What: Neiman Marcus rejects Saks’s proposed takeover of Neiman for close to $3 billion.

Why it is important: The potential merger would allow the luxury department store chains to negotiate better terms with suppliers and reduce duplicate costs, as the changing landscape of retail and the increasing power of luxury brand owners are creating challenges for department stores.

A merger between Saks and Neiman could result in the closure of some overlapping store locations, as they have multiple stores in the same malls. Neiman's bankruptcy and subsequent restructuring in 2020 helped the retailer shed significant debt, and both chains have experienced fluctuations in luxury goods purchases during the pandemic. The potential agreement is still under negotiation, but a final deal is not expected until early next year.

Neiman Marcus rejects $3 billion takeover bid by Saks