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"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.

Saks and Neiman Marcus are merging, but the road ahead is anything but smooth. This opinion piece by Forbes Senior Contributor Steve Dennis explores how this deal could reshape the luxury retail landscape, but also highlights the significant challenges and uncertainties. Will it lead to growth, or are tough times still ahead for these iconic brands? 🌟 #RetailNews #LuxuryRetail #MergersAndAcquisitions #Saks #NeimanMarcus #BusinessStrategy

I think the impact of these two industry luxury leaders will be very interesting to watch. This article focuses more on the beauty side, but there are many less obvious impacts this will have on multiple industries. Jewelry, apparel, accessories, marketing, the list goes on. When you take two known names and structure them to be more profitable and leverage the best of the branded and marketing teams, get ready for an explosion of growth potential. This will also add to an even further divide in the retail sector between department stores following the wealth division in the US. Naming the large department stores now, Saks Fifth Avenue/Neiman Marcus Group, Nordstrom, Dillard's Inc., Von Mauer, Macy's, JCPenney, Kohl's, then discounters.... not many national choices but they all have very focused demographic groups. Stay tuned!

With the dust selling on the announcement that Saks and Neiman Marcus will merge, many businesses and brands are trying to understand the impact of the two firms coming together. It was great to chat with Beauty Independent about what the deal potentially means for the beauty sector and the brands selling to either or both department store businesses. One of the key takeaways is that while both stores operate in the luxury space, they each have their own positions and customers so there won’t be a merger of the propositions. Brands will still need to understand the nuances and specifics of each business. More in the article: https://lnkd.in/eksUQ2KX #retail #retailnews #departmentstores #beauty #luxury

Do Saks and Neiman Marcus Belong Together? Neiman Marcus Group reportedly rejected a $3 billion offer to be acquired by Saks Fifth Avenue. However, talks continue, and a merger could counter increasing moves by luxury brands to expand their direct-to-consumer strategies. “These days, brands are increasingly calling the shots,” stated The Wall Street Journal, which first reported on the latest offer. “They sell directly to consumers with their own stores and e-commerce sites, creating fresh competition for the department stores that carry their wares. The brand owners are getting so big, they wield tremendous power.” Read the full article here: https://lnkd.in/giAvRuaj Jeff Sward "The math, the financial logic, the operational efficiencies, the overlapping footprints…all sound like good reasons to make this happen." David Bruno "There are certainly some operational and (potential) financial benefits to this merger. The questions that are top of mind for me are less tactical and more strategic: how will the combined companies manage their brands, and more importantly, how will the merger affect the relationships with their respective customers?" Brandon Rael "When merger discussions arise, there is always the conversation around driving synergies, cost savings, taking advantage of additional negotiating and buying power, and how it will benefit both firms financially. However, both Saks Fifth Avenue and Neiman Marcus have experienced plenty of challenges with the disruption and sales downturn the department store sector has faced." #luxurybrands #neimanmarcus #retailwire #retail #discussion

Things are hotting up in the east vs west battle for global dominance of the premium department store space. Hudson's Bay Company owned Saks Fifth Avenue merging with Neiman Marcus Group further cements Richard Baker’s ambitions to create the ultimate global luxury department store conglomerate. How stable mates Hudson's Bay and GALERIA Karstadt Kaufhof GmbH will be involved in this is not yet clear but the involvement of tech behemoths Amazon and Salesforce in this move is the ultimate enabler for global consolidation in both the physical and digital space. Given the collapse of FARFETCH, the questionable future of NET-A-PORTER, and the resurrection of the department store as brand aggregator, there is a void here to be exploited for sure. Currently the Thai giant Central Group leads the field in this, linking Selfridges group, THE KADEWE GROUP, DeBijenkorf BV, Brown Thomas Arnotts , Rinascente ILLUM GLOBUS CRG and Robinsons Retail Holdings Inc. On a market by market basis there has been little cross over, other than Germany, but the digital space could see a direct battleground. Perhaps a purchase of YOOX NET-A-PORTER might be a logical place for one of them to go next? https://lnkd.in/eaxV8AXX

Interesting read from Erica La Sala from Beauty Independent related to the Saks and Nieman merger. The question asked: What do you make of the Saks Fifth Avenue/Neiman Marcus deal? How will it impact the luxury beauty market? Will it strengthen the declining department store sector?  According to Cristina Nuñez, "... the department store channel is a challenging one. Historically, it has been the main retail channel for luxury beauty brands given it is more suited for a higher price point. But with continued declines in traffic at department stores, the channel has proven to be a difficult place for luxury brands to rely upon for growth. Instead, growth is being driven at specialty retailers such as SEPHORA and Ulta Beauty, whose dominance has largely been at the expense of department stores". "At the end of the day, consumers will continue to shop for beauty at retailers offering best-in-class in-store experiences optimized for brand discovery. Brands should seek out these partners offering the best brand building support and a path to achieving scale. Perhaps the combination of Saks and Neiman Marcus will allow for a more enhanced retail experience overall that is even better suited for luxury beauty. Time will tell." True Beauty Ventures

Clarkston's Sarah Covill Broyd commented on the recent new that Saks Fifth Avenue parent company Hudson's Bay Company is acquiring Neiman Marcus Group. "With the rise of #luxury brands and the decline of #departmentstores, the #merger between Saks and Neiman Marcus will create greater power on their side for negotiations across brands and products. Consolidating two stores with high level of overlap in #brands, offerings and consumers will increase their strength in negotiating against brands. Given their similar #consumer sets and stores, I suspect they will consolidate their real estate and corporate functions. Beauty companies should expect increased pressure from the retailer, but likely less storefronts to sell into. In most department stores, the #beauty counter typically brings in a significant portion of the foot traffic, so brands have leverage. Luxury department stores also understand they also contending with prestige brands being sold at other retailers like Ulta and Sephora ..." Continue reading in the Beauty Independent article here: https://hubs.ly/Q02GsH8T0

Thanks Beauty Independent and Erica La Sala for sharing my thoughts on the Saks Fifth Avenue / Neiman Marcus Group deal and how it might impact the luxury beauty market and the department store channel overall. Some of my key takeaways: ▶ The Saks/Neimans merger is occurring amidst significant department store challenges as growth has shifted to specialty retailers like SEPHORA and Ulta Beauty. ▶ The declining department store channel has historically been key for luxury beauty brands which could face reduced retail options and leverage as a result of the merger. ▶ This further emphasizes the need for luxury beauty brands to pursue direct-to-consumer growth strategies leveraging their high AOV and gross margin profiles to support profitable new customer acquisition growth. ▶ Perhaps the combination of Saks and Neiman Marcus will allow for a more enhanced retail experience overall that is even better suited for luxury beauty in the future - only time will tell. Great insights also shared by Kelly St. John, Tina Henry Bou-Saba, Karen Hayes and other beauty industry colleagues! True Beauty Ventures #beautyinvesting #beauty #VC https://lnkd.in/eswm8YD3

✨ Albeit exciting in the boardroom, as signalling of more shifts in the luxury retail landscape continue to morph the realities of the marketplace/department store domain, it’s all becoming stale and uninspiring on the ground where originality and point of difference are getting lost in the proverbial shuffle 🔀 The majority of these takeovers and M&As lack evolution and require only transactional profit margins and shareholder primacy as their main results driver on the other side; diluting the honest experience of a ‘brand’ that’s needed for long term growth. 🌎The world of retail started as a place where innovation, creativity and desire could come together to inspire connection and purchase - To my community rich with talent and pioneer ship, I say we can do better than let go of what we once understood so instinctively. #retail Niche NovAzure #peoplebeforprofit #design #innovate #grow