A new luxury retail empire has been created.
Late Monday afternoon, Saks Global disclosed that it has finalized its acquisition of Neiman Marcus Group for a total enterprise value of $2.7 billion, as has been expected.
Saks Global now includes Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks Off 5th.
Richard Baker, executive chairman of Saks Global, said in a statement, “This milestone transaction marks a transformative moment for Saks Global and the luxury retail industry. By uniting Neiman Marcus, Bergdorf Goodman and Saks Fifth Avenue, we have created an unparalleled multibrand luxury portfolio with tremendous growth potential. With data and innovation at our core and a portfolio of prime real estate, we aim to redefine the luxury shopping experience.”
Marc Metrick will serve as chief executive officer of Saks Global Operating Group, and Ian Putnam will serve as CEO of Saks Global Properties & Investments. Both will report to Baker.
Metrick said, “Bringing these iconic brands together is a significant step forward for luxury retail. As one company, we have an opportunity to transform the way we serve consumers, blending art and science to ensure each customer’s experience is unmistakably their own. With deep relationships across the industry, cutting-edge personalization and strategic technology partnerships, we are poised to drive innovation and growth. I look forward to working with the many talented leaders and employees from NMG and across Saks Global as we embark upon our journey to bring these businesses together.”
While the deal creates a luxury retail empire in America, it raises various questions about potential consolidations, executive changes and relationships with vendors, as well as the overarching strategy since Saks has split its digital and online operations into two separate companies while NMG continues to operate as an omnichannel retailer.
The company has established the new role of president and chief commercial officer which will be filled by Emily Essner, who previously served as chief marketing officer at Saks. She will lead the company’s go-to-market strategy by aligning key commercial functions “to enhance the customer experience and drive revenue,” the company indicated. “This role will break the mold for how we bring the luxury shopping experience to life. Emily is the ideal person to lead this critical new function and advance our strategy to meet customers’ increasing demand for individualized experiences.”
“Bergdorf Goodman will remain a stand-alone business under the Saks Global umbrella, building upon its reputation for distinct, curated luxury shopping,” Saks Global indicated in its statement.
Tracy Margolies, who previously served as chief merchandising officer for Saks, has been appointed president of Bergdorf Goodman. She succeeds Darcy Penick. “Tracy’s deep expertise and track record of leading results-driven strategies will propel Bergdorf Goodman into the future while honoring its unique legacy. I am confident she is the right person to lead this storied business’ next chapter and look forward to what Bergdorf Goodman will accomplish under her leadership.”
In another executive change, Saks Global has appointed Bill Bine to the new role of chief transformation officer. Bine joins Saks Global from Neiman Marcus Group, where he served as chief supply chain officer. “A highly strategic, results-oriented executive, Bill’s significant experience leading large-scale business transformation and operations in retail will be instrumental to our integration journey,” said Metrick.
