Deal Unites Two Luxury Retail Giants

Saks Fifth Avenue to Acquire Neiman Marcus

Deal Unites Two Luxury Retail Giants

Acquisition Bolsters Saks' Position in the Market

Saks Fifth Avenue, the iconic American luxury department store chain, has announced an agreement to acquire its upscale rival, Neiman Marcus Group. The move unites two of the most renowned names in luxury retail, creating a formidable player in the industry. Saks Fifth Avenue, founded in 1924, reported $3 billion in sales in 2013, while Neiman Marcus has faced financial challenges in recent years, filing for bankruptcy in 2020 and undergoing a debt-for-equity restructuring.

With the acquisition, Saks Fifth Avenue will significantly expand its footprint in the luxury market. Neiman Marcus Group owns not only the Neiman Marcus chain but also Bergdorf Goodman, one of the most prestigious department stores in the United States. The combined entity will give Saks Fifth Avenue a wider reach across demographics and geographic locations.

The deal is expected to close in early 2023, subject to regulatory approvals. Saks Fifth Avenue is confident that the acquisition will create "a more compelling and differentiated customer experience," according to a statement released by the company. The combined business will have a more robust digital presence, a broader product assortment, and a larger loyalty program.