The owner of Saks will pay $2.65 billion to purchase luxury shop Neiman Marcus

The parent company of Saks Fifth Avenue said on Thursday that it has reached a $2.65 billion agreement to acquire rival luxury store Neiman Marcus.

The parent company, HBC, announced that Saks Fifth Avenue, Neiman Marcus, and other high-end retail and real estate holdings will be merged into Saks Global.

during a boom in luxury retail during the COVID-19 epidemic, high borrowing prices are forcing customers to cut back on their spending, which is why luxury merchants are facing declining demand at the time the deal was announced.

The CEO of Saks’ online division, Marc Metrick, will lead the merged enterprise.

According to the businesses, Saks Global will also get investments from Salesforce, a provider of customer relationship software, and online retailer Amazon.com.

Neiman Marcus is renowned for carrying high-end merchandise such as purses, shoes, gowns, and other items.

Neiman Marcus Group’s financial advisers in the transaction were J.P. Morgan and Lazard.