What: Richard Baker’s Hudson’s Bay Co. (HBC) has reached a definitive agreement to acquire the Neiman Marcus Group for a total enterprise value of USD 2.65 billion, bringing Neiman Marcus together with Saks Fifth Avenue under a new entity, Saks Global.

Why it is important: This merger consolidates two of the largest luxury department store chains in the U.S., potentially reshaping the landscape of luxury retail. With Amazon as an investor, the merger aims to enhance logistical and digital capabilities, leveraging the strengths of both brands to better compete in the evolving market.

Richard Baker’s Hudson’s Bay Co. (HBC) has successfully acquired the Neiman Marcus Group for $2.65 billion, combining the Dallas-based luxury retailer with Saks Fifth Avenue to form a new entity, Saks Global. This merger, which has been in the works for over a decade, aims to capitalize on cost-saving synergies, shared data, best practices, and a stronger combined customer base. Amazon, along with Apollo and Salesforce, is an investor in the deal, indicating a strategic move to strengthen its foothold in the luxury segment.

Marc Metrick, currently CEO of Saks, will lead Saks Global, which will generate approximately USD 10 billion in sales, with Saks contributing USD 6 billion and Neiman Marcus USD 4 billion. The merger will also include HBC’s and Neiman Marcus Group’s U.S. real estate assets, creating a USD 7 billion portfolio of top-tier luxury retail properties.

The merger, pending approval by the Federal Trade Commission, aims to streamline operations, eliminate duplicative functions, and enhance customer service through better personalization and AI tools. However, there are concerns regarding the potential for store closures, job losses, and increased pressure on vendors.

Saks-Neiman’s merger has finally arrived