Saks Global names new leadership as it completes $2.7B Neiman Marcus

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Saks Global completed its acquisition of Neiman Marcus Group for $2.7 billion, the company announced on Monday. The move brings several luxury retailers under the Saks Global corporate roof, including Saks Fifth Avenue, Saks Off Fifth, Neiman Marcus and Bergdorf Goodman. The companies first announced the deal in July.
To pay for the deal, the company said it’s using equity contributions from a handful of new investors, including Amazon, Authentic Brands Group and G-III Apparel Group, along with the issuance of $2.2 billion of senior secured notes and an asset-based lending revolving credit facility.
Saks CEO Marc Metrick will stay with the company to serve as CEO of Saks Global Operating Group. Ian Putnam, president and CEO of HBC Properties and Investments, will serve as CEO of Saks Global Properties & Investments. Both will report to Richard Baker, Saks Global’s executive chairman. Bergdorf Goodman will remain a stand-alone business and Tracy Margolies, who was previously Saks’ chief merchandising officer, will be Bergdorf Goodman’s new president.

The completion of the acquisition brings full circle a deal that was first announced this summer by Saks Fifth Avenue parent HBC. As a result of the transaction, HBC’s Canadian business — including Hudson’s Bay stores and its website — has been recapitalized and will be separately financed from Saks Global.

Baker said in a statement that uniting the brands creates “an unparalleled multi-brand 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.”

Saks Global also announced new leaders Monday. Emily Essner, who was previously Saks’ chief marketing officer, has been appointed to the newly created position of president and chief commercial officer at Saks Global. Bill Bine was appointed to the new role of chief transformation officer at Saks Global. Bine was previously chief supply chain officer at Neiman Marcus Group.

Saks has experienced several significant business changes this year. In April, Saks Fifth Avenue’s e-commerce business secured $60 million in liquidity and the company debuted a retail media network, tapping into first-party shopper data from a reported 435 million annual website visitors.

In July, Saks Firth Avenue began expanding its Fifth Avenue Club personal shopping and styling services to additional locations. Also that month, shortly after the acquisition of Neiman Marcus was announced, Saks Fifth Avenue’s chief operating officer and Saks Off 5th’s chief merchant left.

Authentic Brands Group and Saks Global announced the start of a joint venture in October, Authentic Luxury Group, that includes luxury Authentic-owned retailers Barneys New York, Judith Leiber Couture, Hervé Léger and Vince. Authentic Luxury Group also has brand growth potential outside the retail sphere in digital, hospitality, real estate, art and travel, the companies said.

Salesforce is also an investor in Saks Global and will support the business’s personalization strategy by using first-party data and artificial intelligence to create customized shopping experiences.

“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,” Metrick said in a statement. “With deep relationships across the industry, cutting-edge personalization and strategic technology partnerships, we are poised to drive innovation and growth.”

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