Saks buys Neiman Marcus in $2.65B deal

Amazon, which wants to be a bigger player in luxury retail, holds a minority stake in the new company

(Image credit: Scott Olson / Getty Images)

published 5 July 2024

What happened

Hudson's Bay Company, which owns Saks Fifth Avenue, will buy Neiman Marcus and Bergdorf Goodman in a $2.65 billion deal announced Thursday. The luxury retailers will be combined under a new entity, Saks Global, but will continue to operate under their existing brand names. Amazon and Salesforce will have minority stakes in the new company.

"We're thrilled to take this step in bringing together these iconic luxury names," said HBC CEO Richard Baker. The merger comes as "consumers are showing restraint — particularly on prestige purchases — as they tussle with high inflation and interest rates," The Washington Post said.

HBC and Neiman Marcus have been in talks for years, but while the merger was anticipated, Amazon's stake adds "a bit of spice," GlobalData's Neil Saunders said to The Associated Press. Amazon, which wants to be a bigger player in luxury retail, will share its expertise in logistics and personalization technology with Saks Global to help the new powerhouse thrive in the increasingly crucial online market.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.