By Connor Hart

Saks Fifth Avenue's parent company has finalized its nearly $2.7 billion acquisition of Neiman Marcus Group, creating a powerhouse in luxury retailing that seeks to hang on to wealthy shoppers.

The sale, first announced in July, came after months of negotiations. Over the years, the department-store chains explored a combination several times, as both have struggled as consumers spent less on luxury goods and fashion brands opened their flagship stores.

The new company, Saks Global, now includes Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks OFF 5TH, all of which will continue to operate under their own brands. Amazon.com, Authentic Brands Group, Salesforce and G-III Apparel Group are all investors in the company.

Saks Global said it named Bill Bine, who most recently was Neiman Marcus' chief supply chain officer, to the new role of chief transformation officer to support its transformation strategy. It additionally established the role of president and chief commercial officer, which will be filled by Emily Essner, who previously was chief marketing officer at Saks.

Bine and Essner join an executive team including Marc Metrick, CEO of Saks Global Operating Group, and Ian Putnam, CEO of Saks Global Properties & Investments, both of whom will report to Executive Chairman Richard Baker.

The company's operating group will aim to deliver what it called personalized, inspiring shopping experiences, powered by data-driven technology and a strengthened financial position.

Its properties and investments arm will include Saks Fifth Avenue and Neiman Marcus flagship properties with a $7 billion gross asset value portfolio in luxury markets and be responsible for executing strategic transactions, the company said.

"This milestone transaction marks a transformative moment for Saks Global and the luxury retail industry," Baker said. "By uniting Neiman Marcus, Bergdorf Goodman, and Saks Fifth Avenue, we have created an unparalleled multi-brand luxury portfolio with tremendous growth potential."

Saks Global will have about $10 billion in annual sales. For comparison, luxury behemoth LVMH Moët Hennessy Louis Vuitton, which owns Louis Vuitton and dozens of other brands, had sales of about $94 billion last year.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

December 23, 2024 18:35 ET (23:35 GMT)

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