Cristina Nuñez’s Post

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

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

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

Everyone's trying to figure out what the Saks Fifth Avenue acquisition of Neiman Marcus Group is going to mean in the luxury market. I took a look and here's how I read it, in my latest Forbes.com post with Warren Shoulberg Richard Kestenbaum Marc Metrick Pete Nordstrom Nordstrom #luxuryretail #luxurymarket #mergersandacquisition #luxuryconsumers #luxurycustomers #luxuryshopping

🚀 Saks Fifth Avenue's Parent Company Buys Neiman Marcus Group🚀 HBC, the parent company of Saks Fifth Avenue, has announced its acquisition of Neiman Marcus Group for a staggering $2.65 billion! This strategic move is set to reshape the luxury retail landscape, combining two iconic brands under one umbrella. Here are some key points to consider: Strengthening Market Position: This acquisition positions HBC to better compete in the luxury retail sector, leveraging the strengths of both brands. 👡 Enhanced Customer Experience: With combined resources, we can expect innovative shopping experiences and expanded product offerings for luxury consumers. 👒 Synergies in Operations: The merger is likely to create operational efficiencies, reducing costs and improving supply chain management. 👠 Digital Transformation: Both brands can collaborate on enhancing their online presence, catering to the growing demand for e-commerce in luxury retail. Cultural Fusion: The blending of HBC and Neiman Marcus’s unique brand identities could lead to exciting new marketing strategies and collaborations. 👛 What are your thoughts on this acquisition? Will it enhance the shopping experience for luxury consumers? How do you see this impacting the retail landscape? Let’s discuss! 💬 ⛰ At Alpine Integrity Group, we make investing accessible through quantitative analysis and tokenomics, providing personalized insights through our various reports and expert guidance. Detailed information can be accessed on our website. Follow us for more updates on relevant financial information! #RetailNews #Acquisition #LuxuryBrands #NeimanMarcus #SaksFifthAvenue #BusinessStrategy #Ecommerce #CustomerExperience #AlpineIntegrity #AIG #Stocks #Markets

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

Is the Saks acquisition of Neiman Marcus a good move? Saks Fifth Avenue's parent company, HBC, has announced the acquisition of Neiman Marcus for $2.65 billion, which, once the transaction is finalized, will establish a new luxury retail powerhouse named Saks Global. How might the two brands avoid losing their identity and positioning in the competitive luxury retail market? Read the full article here: https://lnkd.in/gRNpNrqe Paula Rosenblum "I don’t see how putting these underperforming retailers together creates differentiated, accretive but profitable experiences…The luxury market is getting crazy oversaturated." Shannon Flanagan "Who knows?! It saddens me to see another iconic brand be folded into a like brand. The big question I’m most curious about is the positioning of Neiman Marcus in their portfolio: stores, product, teams, culture, etc." Jeff Sward "This is a far from obvious solution to what ails these two retailers and this tier of the market. Sure, they will save a couple of nickels in some back office efficiencies and a couple more nickels in “negotiating power” (maybe). Neither of those press release favorites will move the needle significantly."

Thanks to The Business of Fashion for including my thoughts in this article on the potential acquisition of Neiman Marcus by the parent of Saks Fifth Avenue. The merger of the two companies will create some benefits, but it still leaves lots of questions as to their future place in the luxury retail sector. In my view, corporate dealmaking is always exciting and generates a lot of promises. However, the real challenge is actually delivering on those promises. More in the article: https://lnkd.in/eny9tJzC #retail #retailnews #luxury #departmentstores #fashion #apparel

Saks Global Completes Neiman Marcus Acquisition The luxury retail world just got a major shake-up. Saks Global has finalized its $2.7 billion acquisition of Neiman Marcus Group,

Saks will now have Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue, and Saks OFF 5TH in its portfolio. Under the agreement, first reported this summer, Saks will acquire 36 Neiman Marcus stores across key states like California, Texas, Florida, Illinois, and New York. The acquisition was funded with equity contributions from major players like Amazon, Salesforce, and Authentic Brands Group (known for Reebok, Forever 21, and Billabong). According to Bloomberg, the move aims to boost profitability by leveraging stronger vendor relationships and reducing supply chain costs.