A Wren Says

Investors are eyeing a deal that could put Neiman Marcus and Saks Fifth Avenue under the same ownership group. If you want to read more about that deal, you can do so with this WWD article. I am just here to speculate. If this deal goes through, what will it mean for the luxury shopping landscape?

I’ll put it this way. Imagine if someone came along and bought both Target and WalMart. What ripple affects would that have? Think of everything you know about the differences in approaches between the two stores, how you have a preference for one over the other, and how you have built an idea of the two in your mind. Now imagine they were bought up and now became sister stores. That’d be wild right? Yes, I am aware that they are completely different types of stores from the luxury brands, but follow me on this example.

Target and WalMart are the two major big box stores in the shopping landscape. Likewise, Saks and Neiman’s are the major players when it comes to the US luxury department stores. Putting the two under the same roof could have major implications for the so many aspects of the luxury landscape.

As a shopper, what would a de factor merger mean for the shopping experience? Would the brands maintain their distinct identities, even though the are under the same roof? What if one of those brands starts to falter? From a business perspective, would this make it easier to get into more doors? Or would things get more complicated? Is this move that is good for the industry overall, or just those who have their hands at the deal table? And what out all of the recent work Neiman Marcus did to improve the diversity of its workforce? Will all of that be wiped away?

At this point we have seen multiple online luxury retailers falter. The Nordstrom family is trying to take their company back private. And here is yet another possible change. This deal is not yet done, but I already wonder what it will mean for American luxury’s future.