After a years-long pursuit, and endless speculation, Richard Baker’s Hudson’s Bay Co. is said to have reached a definitive agreement to buySaks and Neiman’s have been in talks to merge many times over the years, but the latest negotiations began last summer. The Wall Street Journal on Wednesday reported details of the final agreement, which will still be subject to approval by the Federal Trade Commission, which has grown more assertive.
Secondly, there would be a sharing of data, best practices, management talent and a common customer base. Merging loyalty programs is a possibility. For example, using each retailer’s credit cards to shop could earn points valid at both Saks and Neiman’s. Or spending enough at either store could lead to access to invitation-only events at both Saks and Neiman’s.Third, there could be a greater differentiation between Saks and Neiman’s, and reduced overlap of merchandise, which is extensive.
Following conclusion of the deal, the Federal Trade Commission and the antitrust division of the Justice Department might be all over it, and possibly block it over concerns about the potential for HBC to raise prices, close stores, lay off workers and increase pressure on vendors.
While market experts say merging Saks and Neiman’s compounds both of their chances of long-term survival, both have been experiencing sluggish sales as consumers shift much of their spending to travel, dining out and other experiences. Whether that’s a permanent shift or not remains to be seen. Also, recently, there have been reports of, whereas Neiman’s appears to be paying in a timely fashion.
If a Saks-Neiman’s deal is consummated, “They’ll really go after the online business and explore the potential internationally,” Gould suggested.