Saks Fifth Avenue and Neiman Marcus are merging to create a luxury retail network — and Amazon has a stake in the deal, too.
Saks owner HBC announced the $2.65 billion acquisition and new retail powerhouse known as Saks Global in a press release on Thursday.
Saks Global combines the two department giants, discount store Saks Off 5th and high-end retailer Bergdorf Goodman, which Neiman Marcus owns.
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Amazon will serve as an investor in Saks Global to “innovate on behalf of customers and brands partners,” per the release.
The long-speculated merger grants the combined entity greater bargaining power with luxury brands like LVMH, which have turned to direct-to-consumer sales amid declining interest in department stores, CNN reported.
“This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees,” Richard Baker, HBC executive chairman and CEO, said in a statement.
The announcement also brings a reshuffle in executive roles, with Saks.com’s CEO Marc Metrick stepping up as CEO of Saks Global. Ian Putnam will manage the group’s property and investments division, with both reporting to Baker, the newly appointed executive chairman.
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However, regulatory scrutiny looms as a potential challenge. In April, the Federal Trade Commission blocked Tapestry, which owns Coach, from acquiring Michael Kors’ parent company, Capri.