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.
Related: LVMH Acquired Tiffany & Co. for $15.8 Billion — And Now They're Going After This Iconic Brand
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.
Related: Neiman Marcus Is Eyeing the Sale of Iconic Retailer Bergdorf Goodman, According to a New Report
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.
Before you consider Amazon.com, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Amazon.com wasn't on the list.
While Amazon.com currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Growth stocks offer a lot of bang for your buck, and we've got the next upcoming superstars to strongly consider for your portfolio.
Get This Free Report
Like this article? Share it with a colleague.
Link copied to clipboard.
