Tracy Margolies

Thank you Inside Retail US for quoting International Association of Department Stores - IADS in their latest article on the Saks Fifth Avenue / Neiman Marcus Group mega merger (link in comments)! 🎯 On the global department stores stage, the US represent a very specific market (apart from its size), as most of the nationwide companies are public (maybe not for long anymore, as Nordstrom, for instance, is planning to go private). This means that they have to be transparent on their numbers, which are not-so-good for a wide variety of factors (the missed e-commerce train, the customers' disaffection for the malls where they are located, a low differentiation between each other, an ageing clientele, a wide variety of competing channels and formats, an oversupply of stores on a market with the highest number of retail sqm per capita...). The Saks Fifth Avenue merger with Neiman Marcus Group, orchestrated by Saks' owner, Hudson's Bay Company, is therefore not so surprising as the pie has shrunk over the past twenty years. 💥 It can be expected that this merger will be as much of a game-changer as the latest one that took place in 2005, when Federated (aka Macy's now) acquired May Department Stores for $17.2bn (for comparison, the current NM / SFA merger price tag is $2.65bn), ending a 20 year-long consolidation cycle that saw the disappearance of legendary US destination stores (such as Filene's, Kaufmann's, Marshall Field's, Foley's, the Bon Marché, Hecht's, Stern's...) which were rebranded Macy's or Bloomingdale's according to the locations. 🚚 The new entity created, Saks Global, aims at maximizing the synergies between the companies, since Neiman Marcus and Bergdorf Goodman (part of the Neiman Marcus group) are the undisputed leaders in luxury retail, while Saks Fifth Avenue has separated its stores from its e-commerce entity in 2021. However, while the leadership of the new company has been announced, the plans remain vague, since this merger remains to be approved by the Federal Trade Commission. Pro tip: more than layoffs and store closures, the location of the new offices will be the most interesting thing to watch. The reason is that Neiman Marcus and Saks Fifth Avenue are entirely different animals: the former, specialized in luxury, is one of the last operator in the US to operate in wholesale (which requires savoir-faire, ability to select, curate and sell) while Saks Fifth Avenue is concession-based, which is another job. The place where the bosses will gather will tell everything about the direction of the new entity: Dallas (NM's current headquarters) or NY (SFA)? Not convinced? Look at what happened to Boeing since they decided to leave Seattle for Chicago when they merged with McDonnell Douglas... Thank you Nicole Kirichanskaya for the cool article and what a pleasure to be quoted along the great Marie Driscoll, CFA!

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Key functions of the Saks.com, the Saks Fifth Avenue stores known as SFA, and Saks Off 5th companies are being merged under the Saks Global umbrella.⁠ ⁠ The strategy represents an effort to create efficiencies and will lead to what sources said were about 100 layoffs, or 1 percent of the staff, including the elimination of certain positions.⁠ ⁠ Legal, technology, operations, people, communications and finance teams from the three companies will be consolidated under the Saks Global corporate umbrella.⁠ ⁠ Read more here: https://lnkd.in/eFCWHy4e

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Barneys Plots a Bigger Comeback Thanks to Neiman-Saks Deal. Talks include Barneys-branded home goods, outerwear lines. Contingent on negotiations, close of Saks-Neiman deal https://lnkd.in/euFeFyzJ #tradeguard #receivableputoptions #arputs #receivableputs #tradereceivables #accountsreceivables

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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

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Nike ranks fourth on Depop and second on eBay with over 219,000 and 893,000 items, respectively. #Retail #TextileRetail #ApparelRetail #RetailNews #DailyNews #Nike #ApparelResources #ApparelIndustry #RetailIndustry #FashionBrand

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What if a single store visit could be your stepping stone to a big promotion? This isn't a hypothetical for some retail leaders; it's their resume. 🚀 Yolanda Vega Director of Stores (Southeast & Central US) at Zadig&Voltaire was once promoted after a remarkable store visit. Fun fact: So was I. With over two decades of retail leadership at brands like Gap, J.Crew, and Ralph Lauren, Yolanda has carved out a reputation for transforming store environments into stories of strategic vision and success. 🛍️ 🎯 In this week’s episode of FRONTLINE FRIDAYS, Yolanda and I dissect strategies and preparation techniques that ensure store leaders not only perform exceptionally during these visits — but also how directors can coach their teams to take ownership of their roles and become champions of their own stories. ✅ Click “ATTEND” in the link below to join us live on Friday or to receive the replay in your inbox. See you there! #RetailLeaders #RetailInnovators #RetailOperations #LeadershipTraining #StoreSuccess #RetailInnovatio

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Consolidation of the department store retail sector continues. This round at the premium level. Expect continued overall declines in a retail segment that is in dire need of real transformation to remain relevant long term. More of the same won’t cut it. #retail #departmentstores #wholesale #ecommerce

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One day after EssilorLuxottica announced its deal to acquire Supreme from VF Corporation, Meta, Facebook's owner, is in talks to acquire a stake of about 5% in the eyewear company. Based on recent market value, a roughly 5% stake could be valued at around $5 billion, a relatively small for Meta, given its market value of around $1.2 trillion. EssilorLuxottica makes Meta's Ray Ban smart glasses and sales of the glasses have exceeded expectations. The devices, an important part of Meta’s hardware strategy, allow users to take photos and listen to music with the frames of their glasses, among other features. Maintaining ties with Luxottica is crucial for the success of smart glasses devices and the company’s ambitions to build the so-called metaverse, which is a term used to describe people interacting in a 3-D version of the internet simultaneously. A third generation of Ray-Ban Meta glasses, expected to include a small screen display, is expected to be ready for consumers in time for the 2025 holiday season. The allure of Luxottica’s Ray-Ban brand is important to the success of a tech device that users are expected to wear on their faces. Luxottica’s ownership of LensCrafters, the prescription-eyewear retailer, also plays a key role in selling the Ray-Ban Meta to users who require prescription lenses. The two companies began working together several years ago for the release of the first generation Ray-Ban Stories smart glasses, which went on sale in 2021. The initial device struggled to catch on with consumers, and among the glasses that were sold, only 10% of the Ray-Ban Stories were actively used by their purchasers. The second-generation Ray-Ban Meta glasses went on sale in September and have done significantly better than their predecessors. The Ray-Ban Meta glasses operate more quickly and have better cameras than their predecessor. The Ray-Ban Meta also includes nascent generative #AI technology that allows users to ask the device for information about the things in front of them, such as the breed of a cat. The Ray-Ban Meta glasses have proven popular for users who want to shoot hands-free videos of their children playing and first-person videos of themselves while going on roller coasters or riding bikes. Meta hasn’t said how well the Ray-Ban Meta glasses have sold, but CEO Mark Zuckerberg said in April that the device was doing well and that a market for that type of device was developing sooner than he would have expected. Meta sells its own devices to employees at a discount, and offers the Ray-Ban Meta glasses at a 15% discount with a limit of 3 pairs per employee. The new glasses have proven so popular internally that some employees have tried to get extra pairs from their colleagues after hitting the 3-pair limit. #strategy #technology #smartdevice https://lnkd.in/ePwG-bSc?

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In this Expert Analysis #3E's Cassidy Spencer stitches together the details of the Fashion Environmental Accountability Act, a.k.a. the New York Fashion Act. What does the Met Gala have to do with supply chain best practices for sustainability? Read our blog to find out: #supplychain #nycfashion #NewYorkFashionAct

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Is the Neiman Marcus Group acquisition by Saks Fifth Avenue a Luxury Shopping game-changer? Saks Fifth Avenue's parent company, Hudson's Bay Company, is acquiring Neiman Marcus Group for an impressive $2.65 billion! This landmark deal, partially funded by Amazon, along with Rhône Capital and Insight Partners, is set to reshape luxury retail. For those who love #luxury shopping, this is a game-changer. Combining forces means expanded market reach and streamlined operations, enhancing our shopping experiences. With technological advancements redefining retail, this #merger promises exciting innovations. The inclusion of valuable U.S. real estate assets, worth approximately $7 billion, adds a significant financial boost. #Amazon's involvement is particularly intriguing. As an e-commerce leader, Amazon's participation signals a strategic move to strengthen its luxury retail presence. I’m excited to see potential collaborations combining Amazon's tech prowess with Saks and Neiman Marcus's retail expertise. HBC plans to establish Saks Global, encompassing Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman, with each brand operating independently. Additionally, HBC’s Canadian business will be spun off as a standalone entity, focusing on different markets. The luxury retail sector is entering a transformative phase, and I'm eager to see how this deal unfolds and impacts our shopping experiences. What do you think? Will this acquisition bring more luxury and innovation to our shopping experiences, or do you foresee challenges ahead? Share your thoughts in the comments! ⬇ #RetailNews #LuxuryRetail #BusinessAcquisition #acquisition #SaksFifthAvenue #NeimanMarcus #Innovation #CustomerExperience

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'Talent is the multiplier. The more energy and attention you invest in it, the greater the yield.' - Marcus Buckingham #fashionheaveninc #luxuryretail #luxuryfashion #fashionrecruitment #executivesearch #fashionjobs #globalsearch #fashionindustry #careercoaching #fashioncareer

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🌟 Exciting News from Saks: Embracing Growth and Innovation 🌟 Saks and Neiman Marcus are joining forces to create Saks Global! As Marc Metrick, CEO of Saks, mentioned recently to WWD, their focus remains on what they can control amidst regulatory processes. The strategy is clear: to drive growth and enhance customer experiences. Named "Saks Global," this new entity reflects their commitment to leveraging technology and real estate assets to redefine luxury retail. While discussions about international expansion are underway, their immediate priority is strengthening the brand presence in North America. "We understand the importance of financial stability and responsibility. Rest assured, the merger's financing will not affect day-to-day operations or vendor relationships. Our goal is to maintain transparency and uphold our commitments to partners." say Mark to WWD. This merger marks a significant step forward for Saks Global in the Luxury Retail journey. As they look forward to continuing to provide exceptional experiences for their customers and creating new opportunities for their brand partners. Now I wonder, after this exciting merger, how will Saks Global redefine luxury retail and elevate customer experiences in the years to come? Stay tuned for more updates as we navigate this exciting chapter together! 🚀 #SaksGlobal #LuxuryRetail #Innovation #GrowthStrategy

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Last week, Anne had to travel a little further than usual to go to the office 🇺🇸 Since ebp Global, whom we are a proud part of, has become a member of the American Apparel & Footwear Association (AAFA), we now have the opportunity to participate in their events and conferences. So, along with Keith and Nanda from ebp, she went to the AAFA Global Supply Chain & Trade Conference in Portland, Oregon. There were a bunch of different speakers and topics covered. While on the topic of sustainability, one speaker mentioned that in his company they have decided that the best way to be compliant in the USA is to meet EU regulations. There are two reasons for this: One, different states are doing different things, and two, they are mostly copying the EU. Very interesting to consider, we think! 💡 Check out the picture to see some of the other topics on the agenda ⬇ #GlobalSupplyChainandTrade #Sustainability #EUGreenDeal

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Let's delve into the latest fashion movements, emerging styles, and shifts in consumer preferences that have shaped the apparel industry in the first quarter! Read more on our blog: https://lnkd.in/eWKwtexE

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What time do you wake up in the morning? CEOs and top execs from leading footwear brands tell us what time they start their days.

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Guess appoints Andrew Rosen as CEO of Rag & Bone. The appointment comes nearly two months after Guess Inc. and WHP Global will complete the acquisition of the New York-based brand. In February, Guess and WHP Global announced a final deal to acquire Rag & Bone, which was completed in April. Under the terms of the agreement, Guess paid more than $57 million for the purchase, in addition to contributions from WHP Global, according to a press release. OptimaRetail.eu: Experts in worldwide #Retail #maintenance and #repairs - SMART FACILITY MANAGEMENT  #RetailInnovation #FutureTrends #OptimaRetail #facilityManagement #PreventiveMaintenance #ReactiveMaintenance #NewsOptimaRetail #NewsRetail #OptimaRetail

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With the big announcement of the Saks takeover of Neiman Marcus, news that activist investors have upped their bid for Macy's flew under the radar. This week, Arkhouse and Brigade Capital Management increased their offer by around $300 million. This values the stock they don’t already own at $6.9 billion. Putting more money on the table automatically makes the bid more attractive. However, it does not necessarily make it right for the long-term health of Macy’s. Arkhouse and Brigade are focused on real estate. They want to monetize Macy’s property to generate a return. This essentially means selling off stores and then charging Macy’s rent on the shops it continues to operate. We have seen this story play out many times before, and it rarely ends happily for retailers or brands. Take Red Lobster as the latest example. After being bought by private equity, a sale of real estate generated $1.5 billion; but it ended up costing the chain $200 million a year in rent – effectively pushing it into bankruptcy. The tragedy of all this is that it comes just as Macy’s, for the first time in a long time, has recognized the problems in its retail operation and is working to remedy them. CEO Tony Spring has set out a plan for renewal and is executing with speed. There is still a lot to do, but in my view that strategy should be given the time and chance to succeed. At the end of the day, Macy’s can be run as a retailer and built up. Or it can be used as an ATM to generate some short-term cash and torn down. Only one of these paths leads Macy’s into the future.  #retail #retailnews #departmentstores #corporatedeals #realestate

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Rumors: Saks Fifth Avenue could be in talk with Neiman Marcus Group for a takeover. In this regards Saks’ flagship location in Manhattan (valued at 3.62Bn USD) could serve as a collateral to raise financial resources. Neiman CEO Geoffroy van Raemdonck firmly rejected such possibility: "no need” to sell the business. Both firms are leading retailers in United States for jewellery and luxury goods. #jewelry #jewellery #luxury https://lnkd.in/dP46VnM3

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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

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