What Does the Saks-Neiman’s $2.65 Billion Deal Mean for the Beauty Business?

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Saks' parent company Hudson’s Bay Co. reached an agreement to acquire the Neiman Marcus Group for $2.65 billion.

as Saks Global. Amazon was also revealed as a surprise investor in the deal, which is pending approval by the Federal Trade Commission.category,” said Edgar Huber, chief executive officer of Nest. “Saks has consistently proven over the last couple of years that they invest in the quality of their stores, have launched innovative retail-, hospitality-, shared workspace concepts, have modernized merchandising strategies and the assortment mix.

Revive Skin Care CEO Elana Drell-Szyfer told WWD that only time will tell how the deal impacts luxury beauty as the two businesses have a very different approach when it comes to beauty. Drell-Szyfer added that for a luxury beauty brand that is not in Ulta Beauty or Sephora, this also means there are now fewer points of distribution.

“It may give Neiman’s a greater viability, and Saks a greater viability to be under one roof or under one company, but from a brand standpoint, the ability to negotiate, the ability to create a different, unique offer to a customer it’s a bit of a challenge,” she said. “However, having said that, all the smart people I know in this world who worked in the space say to me, we really can’t justify that many luxury department stores in this country anymore.

 

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