TORONTO — Several North American department stores are joining forces under a deal that will see Hudson’s Bay Co. buy Neiman Marcus and spin it out into a larger business along with some of its other prestige retailers. HBC’s US$2.
65 billion acquisition, announced Thursday, delivers Canada’s oldest company ownership of Dallas-based Neiman Marcus Group, which has a network of 38 luxury department stores under the Neiman Marcus and Bergdorf Goodman banners. Both brands sell designer apparel, accessories and housewares. Under the deal, Toronto-based HBC will group Neiman Marcus and Bergdorf Goodman in a new business alongside Saks Fifth Avenue and Saks Off 5th, which it has owned since 2013.
The new entity will be called Saks Global and run by Saks.com chief executive Marc Metrick. The union of brands puts to rest long-standing speculation that the retailers were on the verge of a merger and will test whether the companies are stronger together than apart.
“For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees,” HBC’s executive chairman and chief executive Richard Baker said in a release announcing the deal. “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.” Neiman Marcus and HBC declined interv.
