The Neiman Marcus Group will be acquired by HBC, the parent company of Saks Fifth Avenue, in a $2.65 billion deal.

• HBC, the parent company of Saks Fifth Avenue, announced on Thursday that it would acquire Nieman Marcus Group in a deal worth $2.65 billion.
• Saks Global will be established by combining Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus' namesake department store chain, and Bergdorf Goodman.
• Amid the turbulent period for traditional brick-and-mortar retail due to the ecommerce boom, a deal has been struck.

On Thursday, HBC, the parent company of Saks Fifth Avenue, announced that it would acquire Neiman Marcus Group in a $2.65 billion deal.

Saks Global will be established by combining Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus' namesake department store chain, and Bergdorf Goodman.

"HBC CEO Richard Baker expressed excitement about bringing together iconic luxury brands through a transaction that has been anticipated by many in the industry for years."

Luxury retail is experiencing an exciting time, according to Baker, who cited technological advancements as a way to "redefine" the customer experience. Several executives from both companies emphasized technology as a key area of focus moving forward.

Saks.com CEO Marc Metrick will become the CEO of Saks Global's business, while Ian Putnam, president and CEO of HBC Properties and Investments, will take on the role of CEO for Saks Global's property and investments business. Both executives will report to Baker, who will serve as executive chairman at Saks Global.

Geoffroy van Raemdonck, CEO of Neiman Marcus Group, described the partnership as a "proactive move in a rapidly changing retail environment."

Amid the turbulent period for traditional brick-and-mortar retail due to the ecommerce boom and post-pandemic demand for experiences, the deal was struck.

Younger shoppers have been less likely to visit department stores, contributing to a decline in discretionary spending.