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Amazon Just Invested in the $2.65 Billion Merger of 2 Luxury Retail Giants — But There's a Huge Potential Challenge Ahead Department stores are on the decline, but the acquisition could restore some control.

By Amanda Breen Edited by Jessica Thomas

Key Takeaways

  • Saks Fifth Avenue and Neiman Marcus will merge to form Saks Global in a $2.65 billion deal.
  • Amazon is serving as an investor to "innovate on behalf of customers and brands partners."

Saks Fifth Avenue and Neiman Marcus are merging to create a luxury retail network — and Amazon has a stake in the deal, too.

Saks owner HBC announced the $2.65 billion acquisition and new retail powerhouse known as Saks Global in a press release on Thursday.

Saks Global combines the two department giants, discount store Saks Off 5th and high-end retailer Bergdorf Goodman, which Neiman Marcus owns.

Related: LVMH Acquired Tiffany & Co. for $15.8 Billion — And Now They're Going After This Iconic Brand

Amazon will serve as an investor in Saks Global to "innovate on behalf of customers and brands partners," per the release.

The long-speculated merger grants the combined entity greater bargaining power with luxury brands like LVMH, which have turned to direct-to-consumer sales amid declining interest in department stores, CNN reported.

"This is an exciting time in luxury retail, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees," Richard Baker, HBC executive chairman and CEO, said in a statement.

The announcement also brings a reshuffle in executive roles, with's CEO Marc Metrick stepping up as CEO of Saks Global. Ian Putnam will manage the group's property and investments division, with both reporting to Baker, the newly appointed executive chairman.

Related: Neiman Marcus Is Eyeing the Sale of Iconic Retailer Bergdorf Goodman, According to a New Report

However, regulatory scrutiny looms as a potential challenge. In April, the Federal Trade Commission blocked Tapestry, which owns Coach, from acquiring Michael Kors' parent company, Capri.

Amanda Breen

Entrepreneur Staff

Senior Features Writer

Amanda Breen is a senior features writer at She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

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