Saks’ Post

While the luxury market continues to navigate a downward spiral by trying to branch out, Macy's has chosen to take the opposite route by placing all its bets on its more premium counterparts by developing new strategies. In February, Macy’s announced it would be closing around 150 stores across the U.S. by 2027 as part of its restructuring plan after reporting concerning earnings that reflected little to no growth. Macy's executives said they would turn their focus to the company's more profitable brands, as their premium assortment has proven to be more resilient, which is why this latest development is an important yet viable extra investment that the company is willing to make for the sake of its future growth. More: https://trib.al/cZkbpeG

🚨🚨🚨Breaking News: Luxury retail in the United States continues to consolidate. International brands have more power than ever before. While the acquisition of Neiman Marcus and Bergdorf Goodman by the parent company of Saks Fifth Avenue is sure to streamline operations, one must wonder how much more homogeneous the stores and their offerings will become. Ultimately, the need for personalization and individualization will become more important than ever. This is a key benefit to working with private consultants who are skilled in the practice of image-making.

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

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

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

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 News, the move aims to boost profitability by leveraging stronger vendor relationships and reducing supply chain costs.

💭 Where Does Michael Kors Go from Here? With Tapestry's $8.5 billion deal to acquire Capri Holdings falling through, the future of Michael Kors is at a pivotal juncture. CEO John Idol’s strategy to reignite growth focuses on bringing back customer-favorite products at more accessible prices, balancing trendiness with affordability, and re-entering the wholesale space after a pullback. This begs the question: can Michael Kors reclaim its dominance while resonating with today’s value-conscious shopper? The brand’s challenge lies in reversing declining sales while competing against strong market players like Coach, who’ve successfully modernized and captured younger consumers. Capri’s fortunes rest heavily on Michael Kors’ success—it makes up 70% of their net sales. Idol admits past efforts at elevating the brand and focusing on trendy, high-priced items missed the mark, distancing core customers and not quite connecting with new ones. Now, as they pivot back, is it too late, or can this recalibrated strategy steer the ship toward growth? 🔎 I’d love to hear your thoughts: Will more affordable, classic products bring back loyal customers? Can the brand strike a balance between trendsetting and accessibility in a crowded market? What does this pivot mean for Capri's overall market position, especially with Jimmy Choo and Versace in the mix? Let's discuss where Michael Kors could go from here and whether this strategy could genuinely change its fortunes. #FashionIndustry #RetailStrategy #MichaelKors #CapriHoldings #LuxuryFashion #BusinessTurnaround #Leadership #BusinessStrategy #Innovation #FashionBusiness #RetailSuccess #GlobalMarkets #LuxuryBranding #MarketTrends #RetailInsights #CustomerEngagement #FashionIndustryNews #ConsumerBehavior #LuxuryFashion

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,

Burberry's recent leadership transition and strategic reevaluation underscore a crucial lesson: ambitious transformations can falter, necessitating swift pivots to adapt. In an interview with Glossy, my colleague Tricia Logan reflected on Burberry's ambitious efforts under CEO Jonathan Akeroyd, acknowledging that their grand plans had not delivered the expected outcomes. However, amidst these challenges, the experience serves as a reminder that while bold innovation carries risks, it remains indispensable for long-term success. #FashionIndustry #BusinessStrategy #transformation #layoffs

$M Macy’s Q3 - The "First 50" strategy advances🏬 EPS: $0.04 (Est. $0.03) Revenue: $4.74B (Est. $4.72B) “We are encouraged by the consistent sales growth in our Macy's First 50 locations and the strong performance of Bloomingdale's and Bluemercury" - Tony Spring, CEO 📉-6% #Macys #StockMarket #InvestmentManagement