What: Saks Global has partnered with Authentic Brands Group to form a joint venture called Authentic Luxury Group, aiming to expand luxury brands like Barneys New York and Hervé Léger globally.

Why it is important: This collaboration represents a strategic effort to grow luxury and accessible luxury brands worldwide, leveraging the strengths of both Saks Global and Authentic Brands Group. It highlights the potential for significant expansion in high-growth markets, creating new opportunities in the luxury retail sector.

Saks Global and Authentic Brands Group have announced a new joint venture named Authentic Luxury Group, focusing on expanding luxury and accessible luxury brands globally. This venture will initially concentrate on brands owned by Authentic Brands, such as Barneys New York, Judith Leiber Couture, Hervé Léger, and Vince. The partnership aims to serve as an incubator for brand growth through strategic licensing agreements and distribution across various sectors, including fashion, retail, digital, hospitality, real estate, art, and travel.

Richard Baker of Saks and Jamie Salter of Authentic Brands discussed their ambitious plans to roll out Barneys retail locations or in-store shops, expand existing brand categories, and widen distribution both in the U.S. and internationally. The venture also plans to purchase additional brands and enhance the distribution network.

The partnership builds on a relationship established in 2019 when Authentic Brands acquired Barneys out of bankruptcy. The joint venture will explore opportunities in markets like South Korea, China, and India, aiming to build a multibillion-dollar platform over the next five years. Additionally, the venture intends to advance Saks Off 5th and explore new possibilities for Bergdorf Goodman.

This initiative comes at a time when the luxury sector is facing challenges, but both companies see it as an opportunity to capitalise on their combined strengths to drive growth and innovation in the luxury market.

Saks and Authentic Brands Group forge global luxury venture