The parent company of Saks Fifth Avenue, apparently not content with just one luxury retail brand, is teaming up with Amazon (yes, that Amazon) to buy Neiman Marcus.
Because what screams high-end sophistication more than the same company that delivers toilet paper to your doorstep in two days? Expect to see high fashion paired with Prime shipping and maybe a drone or two. Because nothing says “luxury” like your designer duds arriving in a cardboard box, right next to your bulk order of cat food.
Here’s some of what The Wall Street Journal reported on this high-end e-commerce collab:
The parent of Saks Fifth Avenue sealed a $2.65 billion deal to buy rival Neiman Marcus, creating a powerhouse in luxury retailing that seeks to hang on to wealthy shoppers—all with a little help from Amazon.com AMZN 0.95%increase; green up pointing triangle.
The department-store chains had been negotiating for months and had explored a combination several times over the years. Both have struggled as some consumers spent less on pricey goods and fashion brands opened their own flagship stores.
The boards of both closely held companies approved the transaction, which they announced Thursday. The Wall Street Journal first reported Wednesday on the deal.
The combined company will have about $10 billion in annual sales and more than 150 locations, including Saks Fifth Avenue, Saks OFF 5th, Neiman Marcus and Bergdorf Goodman. Luxury behemoth LVMH Moët Hennessy Louis Vuitton, which owns Louis Vuitton and dozens of other brands, had sales of about $94 billion last year.