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Saks Fifth Avenue is purchasing Neiman Marcus for $2.65 billion amid luxury retail challenges. Amazon and Salesforce are taking minority stakes in Saks Global, the new company.

The news shows how hard it is for department stores today — particularly compared to luxury giants. In a deal that shows just how hard things are getting in the luxury retail space, Saks Fifth Avenue's parent is purchasing rival department store company Neiman Marcus for $2.65 billion, The Wall Street Journal reported.



Amazon — which has long tried to boost its luxury offerings as part of its "everything store" concept — and Salesforce are getting in on it, too, with both taking minority stakes in the new company, Saks Global. The pair will provide technology and logistics support to the latest luxury giant, the Journal said. As e-commerce and the power of luxury conglomerates like LVMH and Kering have grown, department stores are facing diminishing returns.

In 2020, Lord & Taylor filed for bankruptcy. Macy's announced in February that it would be closing 150 stores over the next three years . Related stories In a way, the old palaces of retail are becoming places to browse, perhaps, but not purchase.

Take somebody looking to buy a new luxury bag. They may visit Bergdorf Goodman, a Neiman Marcus-owned store in New York, to try on a few for size before setting their sights on the Loewe Flamenco bag, an it bag from an it brand. Rather than shell out $2,600 on the spot, they may go home and give it .

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