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When I first saw this article, I had a glimmer of excitement at the idea of the legendary Barneys department store making a brick-and-mortar comeback, especially given the current homogenized retail ecosystem and recent news about Saks' Neiman Marcus acquisition. Barneys has always emulated a unique persona; synonymous with individuality, wit, whimsicality, exclusivity, and discovery. If it was sold at Barneys, it was cool, period. Even holding a Barneys shopping bag gave you clout on the street. However, as I read further into the article, it suggests that Authentic Brands Group (ABG), which purchased Barneys during their 2020 bankruptcy, will continue to license the Barneys name through private label and distribution at Saks. Will customers gravitate towards this new iteration? Can they preserve the essence that made Barneys iconic? Do we really need a Barneys cashmere sweater or tie just for the label when we can already choose from Uniqlo or J.Crew? The challenge lies in whether this reborn Barneys and the product itself can uphold the ethos that made it special or if it will just become another diluted brand in a crowded market.

📈 Saks Fifth Avenue strategic acquisition of Neiman Marcus creates a $7B real estate portfolio The $2.65 billion acquisition of Neiman Marcus by Hudson's Bay Company (HBC), the owner of Saks Fifth Avenue, marks a significant shift in the luxury retail landscape. Backed by Amazon, this move has major implications. Here is my take on the key points: Motivations and Strategic Rationale: - Consolidation for Scale: Combining operations to streamline costs and leverage better supplier terms. - Response to Market Shifts: Addressing declining sales and the rise of online shopping and direct-to-consumer channels. Challenges for Luxury Department Stores: - Changing Consumer Preferences: Increasing demand for online and personalized shopping experiences. - Direct Brand Sales: Luxury brands selling directly, bypassing traditional department stores. - Economic Pressures: Inflation and reduced discretionary spending impacting sales. Competitive Advantages: - Increased Scale: $10 billion in annual sales across 150 locations. - Enhanced Negotiation Power: Better terms with luxury brands and suppliers. - Operational Efficiencies: Streamlined operations to improve profitability. - Improved Customer Experience: Investments in both in-store and online experiences. Amazon's Role: - E-Commerce Boost: Enhancing Saks Global's online presence with Amazon's tech. - Logistics and Supply Chain: Optimizing delivery and inventory management. - Data Analytics: Leveraging insights for targeted marketing and inventory strategies. Real Estate Strategy: - Store Rationalization: Closing underperforming stores to cut costs. - Repurposing Spaces: Creating experiential hubs with exclusive events and VIP services. - Leasing/Subleasing: Exploring partnerships with complementary brands. Future of Luxury Retail: - Omnichannel Integration: Seamless online and offline experiences. - Personalization: Tailored shopping experiences using data insights. - Sustainability: Adopting ethical and environmentally friendly practices. 🚀 Next Steps: - Curious how this acquisition impacts your real estate strategy? - Want to discuss optimizing your commercial real estate portfolio? 📩 Drop a comment or DM me if you want to chat about how my team can support your success in this evolving market. Link to The Wall Street Journal article: https://lnkd.in/gDVX4n36 #LuxuryRetail #CRE #RealEstateStrategy #Amazon #Saks #NeimanMarcus #RetailTrends #RealEstateInvesting Savills North America Amazon Saks Fifth Avenue Hudson's Bay Company

The Wall Street Journal, Saks Owner to Buy Neiman Marcus—With Help From Amazon. Retail rivals to combine in $2.65 billion deal to woo luxury shoppers. The parent of Saks Fifth Avenue sealed a $2.65 billion deal to buy rival Neiman Marcus, according to people familiar with the matter, creating a powerhouse in luxury retailing that seeks to hang onto wealthy shoppers—all with a little help from Amazon.com AMZN -1.21�crease; red down pointing triangle . The boards of both companies have approved the transaction and an announcement could come as soon as this evening, the people said. 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 combined company would have about $10 billion in annual sales, the people said. Luxury behemoth LVMH Moët Hennessy Louis Vuitton, which owns Louis Vuitton and dozens of other brands, had sales of about $94 billion last year. Amazon would take a minority stake in the new company, which will be called Saks Global, and plans to provide it with technology and logistical expertise, the people said. Salesforce is another minority shareholder. Saks already does business with both tech companies, so the transaction would deepen existing partnerships, one of the people said. HBC, a holding company that bought Saks in 2013, is financing the deal with $2 billion it raised from existing investors, the people said. They include Rhône Capital, the Abu Dhabi Investment Council and NRDC Equity Partners, a private-equity firm run by Richard Baker, HBC’s executive chairman, and his son Jack Baker. Affiliates of Apollo Global Management APO -0.20�crease; red down pointing triangle are providing $1.15 billion in debt financing. By Suzanne Kapner and Lauren Thomas #retail #thefutureofretail #luxuryretail #jobs #management https://lnkd.in/eT5qEiWk

Macy’s new focus on luxury and closure of underproductive stores: Macy’s, unveils ambitious plans to close 150 underproductive stores, marking a significant shift in strategy over the next three years. Amidst a challenging retail landscape, the company emphasizes a pivot towards luxury shopping experiences. Read more from The Guardian: https://lnkd.in/gxWzVSg3 Tony Spring, Macy’s CEO, heralds this transition as a "bold new chapter," signaling a departure from the status quo and a commitment to modernizing the Macy’s brand. With plans to open 15 upscale Bloomingdale’s stores and 30 Blue Mercury cosmetics locations, the company aims to curate relevant assortments and deliver compelling value to its clientele. Despite challenges, Macy’s remains steadfast in its dedication to customer-centric initiatives, promising improved shopping experiences and prioritizing investments in approximately 350 locations while expanding smaller stores. Spring asserts that employees are energized by the prospect of driving market share gains and sustainable growth, fostering optimism within the company. However, the announcement coincides with a 1.4% drop in Macy’s shares during pre-market trading on Wall Street. Furthermore, the rejection of a $5.8 billion takeover offer underscores Macy’s determination to forge its path forward independently. The retail landscape's evolution, accelerated by the pandemic, underscores the imperative for adaptation. Macy’s, like its counterparts, grapples with shifting consumer behaviors and the rise of e-commerce. Despite posting a net loss of $71 million for the last quarter of 2023, the company remains resolute in its pursuit of long-term viability and shareholder value. As department stores navigate a tumultuous landscape, Macy’s bold strategy reflects a commitment to resilience and innovation, aiming to carve out a sustainable niche in an ever-changing market. #HalifaxWest #WinTogether #capitaladvisory #MandA #restructuring #operatingadvisory #Macys #RetailEvolution #LuxuryShopping #BoldNewChapter #Bloomingdales #BlueMercury

You've probably heard that Hudson's Bay Company (the parent company of Saks Fifth Avenue) is buying Neiman Marcus Group... ... but did you catch what might be the most interesting part of this deal? Amazon is taking a minority stake in the new company, Saks Global. The Wall Street Journal states Amazon "plans to provide it with technology and logistical expertise". That's big news. And it shows that even legacy department stores are beginning to realize how technology incorporated into their retail locations can help them deliver on both customer and stakeholder expectations. Fortunately, you don't have to be the size of Saks or Neiman Marcus to begin incorporating powerful technology into your retail stores... ... you just need to send Optimum Retailing (OR) a message to get started. #BrickAndMortar #Retail #technology

"On the surface, this appears to be a good match," says Mark Ryski, Author, CEO & Founder of HeadCount Corporation. "Combining efforts could indeed result in some meaningful synergies between the retailers. And notwithstanding the current softness in luxury spending — which is prone to ebbs and flows over time — I believe there is a place in the landscape for luxury department offering. However, my concern is the financial strength of Saks to undertake the merger. Selling real estate to catch-up on late payments to suppliers is hardly a sign of financial strength. Neiman Marcus is right to be cautious. Now if the LVMH came calling on Neiman Marcus, that would be a completely different story." Check out more insights from one of the retail industry’s leading experts - https://buff.ly/3qRfPx2. More great comments on this topic by RetailWire's BrainTrust experts including: Neil Saunders, Mohamed Amer, Ph.D., Ken Morris, Lucille DeHart, Jeff Sward, Nikki Baird, David Bruno, Gary Sankary, Mark Self, Brandon Rael, John Lietsch, Joan Treistman, Mohammad Ahsen (Socially Ahsen), Dick Seesel, • Shep Hyken, Patricia Vekich Waldron, Verlin Youd, and Anil Patel.

What does the Saks-Neiman mega-deal mean for independent brands? For independent luxury brands the consolidation means they will, technically, have fewer potential buyers. Something of a challenge at a time when other factors, such as the troubles of luxury marketplaces, have reduced distribution. Saks and Neiman Marcus will remain separate brands with their own identities. This is necessary because they have slightly different positions in the market and have their own customer profiles, which are far from identical. That doesn't mean, however, that the combined group won't demand harmonization on things like prices and terms for brands that currently sell into both retailers. For brands that sell to just one part of the group, there may be opportunities to sell into other divisions. If operations are consolidated, then it may streamline processes for brands that currently deal with Saks and Neiman Marcus separately. So, overall, the deal presents a very mixed bag of fortunes. I spoke more about this to Vogue Business. Link to article in the comments. #retail #retailnews #departmentstores #luxury #commerce #brands

Exciting news in the world of luxury and technology. Saks Owner (Hudson's Bay Company) will buy Neiman Marcus Group. ◾ The Wall Street Journal indicates Amazon will take a minority stake in the new co (Saks Global) and would provide technology & logistical expertise - note, this has NOT been confirmed by Amazon. ◾ The boards of Saks parent HBC and Neiman Marcus have approved the transaction, and an announcement could come as soon as this evening. - WSJ ◾ This will be a huge win for Richard A Baker of HBC, a creative deal maker, that's looked at Neiman's over the years. https://lnkd.in/gt_ivMC9 #futureofretail #futureofcommerce #fashion #technology #brands #luxury #businessnews #futureofcustomerexperiences #retail

Well this just got interesting 🤔 A few thoughts: 🔸Luxury sales are declining. What could this mean for the future of luxury and DTC? 🔸 What will this mean for Saks 🇨🇦 that has seen a significant drop in sales, footfall and relevance. 🔸 Will Hudson's Bay Company finally be divested and sold off? 🔸 Will Amazon’s success have any impact on improving Saks and NM operations/supply chain? 🔸 How will buying power be impacted in merchandising? 🔸 Will any functions or teams be combined since many brands across stores overlap? 🔸 Salesforce also threw in some cash to assist in the adoption of AI. Saks Fifth Avenue Neiman Marcus Group Amazon Suzanne Kapner Lauren Thomas The Wall Street Journal Salesforce #retail #retailnews #fashion #luxury #stores #departmentstores