Sunday Scoop - Fashion Business News
Saks acquiring Neimans, Abercrombie's turnaround, the Influencer Manager, Fashion & Beauty Finds, driving sales without discounting and more.
Wow! July 4th Holiday Week was busy with Fashion Business News. Catch up before Monday. 🎆
Saks to buy Neiman Marcus (BG too) with help from Amazon & Salesforce
tl;dr1 Hudson Bay Company (HBC) is a holding company that owns Saks Fifth Avenue and they are buying Neiman Marcus Group (includes Bergdorf Goodman) for $2.65 billion with investing minority stakeholders Amazon and Salesforce.
The Details about the acquisition:
Deal Structure
Acquisition: Hudson Bay Company, Saks owner, is buying Neiman Marcus Group for $2.65 billion with investors Amazon and Salesforce taking a minority stake to help support and structure the technical operations.
The new entity will be Saks Global, with estimated $10 billion in annual sales
Leadership and the business
CEO: Marc Metrick (current Saks CEO) to lead Saks Global. Metrick joined the Saks training program in 1995 and has held several roles at Saks and HBC (Hudson Bay Company). He became Saks President in 2015 and took on the CEO role in 2020.
Industry Impact: Job security concerns (does this new larger company need 3 or 4 of everything? 3 to 4 buying offices, 3 to 4 marketing departments, etc.) Currently there is Saks, Saks Off Fifth, Neiman Marcus and Bergdorf Goodman.
Effects on smaller luxury vendors - if there is consolidation of brands or pushing small vendors for better terms/margin this could really impact the businesses. Also, will the group think across the brands become more aligned when led with one central strategy and corporate office?
Store Network: Potential consolidations where overlap exists. Does it make sense to have both Saks and Neiman Marcus anchors in one mall? Will regional teams combine and shrink?
Breaking down the numbers:
In a move that's set to redefine the landscape of luxury retail in the United States, Hudson's Bay Company (HBC), the owner of Saks Fifth Avenue, has announced a $2.65 billion deal to acquire the Neiman Marcus Group, which includes the iconic Bergdorf Goodman. This blockbuster merger, backed by tech giants Amazon and Salesforce as minority stakeholders, marks a pivotal moment in the evolution of high-end department stores.
Combined Brand Portfolio2: Saks Fifth Avenue (41 locations), Neiman Marcus (36 locations), Bergdorf Goodman (1 location, Mens’ and Womens’ across the street on 5th Ave in NYC), and Saks OFF 5th (over 100 discount locations). HBC also owns The Bay (an ecommerce Canadian retailer) and Hudson’s Bay (85 locations).
The Timing and Context: This deal comes at a critical juncture for traditional retail. With the rise of e-commerce and direct-to-consumer brands, department stores have been struggling to maintain relevance and profitability. The COVID-19 pandemic accelerated these challenges, pushing Neiman Marcus into bankruptcy in 2020. Now, as we emerge into a post-pandemic world, this merger represents a bold strategy and assumption that by doing this the brands/retailers will not just survive, but thrive in the new retail landscape.
Tech Giants Enter the Luxury Arena: While this could be interesting having Amazon and Salesforce as minority stakeholders, I’m not confident that with such large entities we’ll be able to see a ton of quick innovation and big risk taking. Ideally operationally things will get smoother. The way we could see a lot of innovation and risk taking is if they implement more of a test and learn philosophy and have teams focus on A/B testing and if something works roll it out in a larger way.
Opportunities for the new Saks Global:
Enhanced Digital Experience: With a larger portfolio I’d like to see more investment in AI capabilities (ex improve search functions on site and discovery for customers with YMAL3)
Expanded Reach: The combined entity could leverage its increased scale to improve operating efficiencies. What is also worth discussing here is how this larger entity could help in negotiating with large luxury brands - think LVMH, Kering etc. While the strength in the US fashion brands might already be there, the US department stores are lacking in negotiation opportunities and strategies with the larger European corporations.
Exclusive Collections: Greater buying power might lead to more exclusive designer collaborations and limited-edition products. There would need to be synergy across brands and this won’t make sense for places where Saks and NM pulls from the same customer base.
Improved Loyalty Programs: A unified loyalty program across all brands could offer unparalleled perks for high-spending customers.
Challenges for a larger department store group:
Cultural Integration: Merging the distinct cultures of Saks, Neiman Marcus, and Bergdorf Goodman without losing their unique identities. Of course this begs the question, or does this matter? Do Saks & NM merge?
Vendor Relationships: Balancing increased bargaining power with maintaining positive relationships with luxury brands and smaller designers.
Job Security: Potential workforce reductions as operations are streamlined.
Regulatory Hurdles: Navigating FTC scrutiny and potential antitrust concerns.
What's Next for the acquisition:
Regulatory Review: The deal faces FTC approval, which could take several months.
Integration Planning: Expect announcements on leadership structure and potential store closures or rebrands.
Tech Rollout: Watch for new digital initiatives leveraging Amazon and Salesforce's expertise.
Brand Positioning: How will Saks Global differentiate its various brands in the market?
Fashion Week Buzz: The merger's impact on New York Fashion Week and designer relationships will be watched.
For Consumers:
Potentially more compelling reasons to shop at these stores, with enhanced experiences and loyalty perks.
Possible concerns about reduced competition and its impact on prices and variety. I honestly don’t think a merger means less competition in price points but do think it could impact too much inventory available in the marketplace. We could see these stores buying less once the merger happens as they could move inventory around easier with the technology support from Amazon and Salesforce to rely on inventory buys that are more conservative.
For Industry Insiders:
A watershed moment signaling the future direction of luxury retail.
Opportunities and challenges for brands in negotiating with this new retail powerhouse.
Potential shifts in fashion week dynamics and buying patterns.
As this deal unfolds, it will undoubtedly spark conversations about the future of luxury retail, the role of technology in high-end shopping, and the evolving relationship between retailers, brands, and consumers. Whether this merger becomes a model for retail success or a cautionary tale remains to be seen, but one thing is certain: the luxury retail landscape will never be the same and it is getting smaller and smaller. What is the relevance of department stores going forward?
Resources if you want to read and learn more:
From WSJ “Saks Owner to Buy Neiman Marcus, With Help From Amazon”
From Business of Fashion “Can Saks, Neiman Marcus and Amazon Save the American Department Store?”
From WWD “A Deal at Last: Assessing the Future for ‘Saks Global’”
From Vogue Business “The Saks-Neiman Marcus mega-deal and Amazon’s underground path to luxury”
Abercrombie’s Turn Around
The Abercrombie turn-around, led by CEO Fran Horowitz, is an important study that all mall brands and retailers targeting Gen Z and Millennials are studying.
Chantal Fernandez wrote for The Cut “The Unbranding of Abercrombie The Problematic Mall Brand Pulled Off the Most Exciting Makeover in American Retail. How?”
Smart that the url for The Cut article includes “wedding guest dresses bridesmaids” for SEO discovery and keyword inclusion) as Abercrombie’s wedding guest dress strategy is one of the key wins for the retailer.
The “Purpose” is also on the e-commerce site’s main navigation (generally this is buried at the bottom of the site in the footer for retailers) with a quote from Horowitz
“We lead with purpose in all we do. That’s who we are now. That’s Abercrombie today.”
They leaned into fantastic Pride styles when many retailers abandoned this year.
I love that their late summer/pre-fall transition is the “Scandi-cool” theme and has pieces like this (which I would totally wear) and this.
Fernandez (and Sherman’s) book comes out this fall on Victoria’s Secret. Could an Abercrombie book be next?
Fashion Industry News
As a competitor to larger department stores, Business of Fashion has an interesting article about multi-brand retailers that are larger boutiques and many have multiple locations (ex. Elyse Walker) “The Stores Defining a New Era of Multi-Brand Retail” by Cathaleen Chen. Substacker
is quoted in the article. In the East Bay of California I love McMullen as Sherri McMullen has an excellent eye, nurtures up-and-coming talent and the edit is always excellent.Imran Amed was on the Masters of Scale Podcast talking about the challenges in the fashion industry and hurdles needed to improve the business. Amed gave a great overview and really appreciate his thoughts - I always do.
- wrote “Checking in on Ganni's ambitious sustainability strategy” and it is a super in-depth piece covering Ganni’s focus on sustainability in their business model. The brand wrote a new book “The Ganni Playbook.”
I also really enjoyed this longer interview between Lauren Sherman from Puck News Line Sheet on Fashion People with the CEO of Ganni Nicolaj Reffstrup. They discuss all parts of the Ganni business, from launch, responsible design, managing the business and financial decisions in growing the brand.
Melissa Ventosa Martin is the founder of the company Old Stone Trade and focused on designing and creating expertly crafted and detailed American designs. Marisa Meltzer writes for the NYTimes about these details and pieces Martin is creating and partnering with crafters and designers. The ecommerce site also does a wonderful job of sharing the stories of the makers etc. Content is well done.
Manager to the Influencers
Lane Florsheim covered Influencers and the Entrepreneur and Founder behind Ponte Firm Shana Davis-Ross for the WSJ in “Shiny Blowouts, Chic Fashion and West Village Reservations. These Insta-Perfect Lives Are Managed by One Woman.” (gift link to read behind paywall) and I found this interesting for a few reasons:
First, the article linked to all the influencers on TikTok. They are also on Instagram but this article focused on the TikTok angle. Really makes me wonder how we are going to come out of the whole TikTok ban situation. Likely means that the focus and revenue the influencers are driving are stronger on TikTok vs Instagram or other platforms.
Second, how much the media world is continuing to change. Ad dollars and brand partnerships that were going to celebrities, magazines and commercials before are now going to influencers. There is less friction to convert if an influencer you connect with provides a link and you can check out in 1-3 clicks. Vs a commercial you have to watch and then consider buying next store visit or going to the website. Until that changes the ad spend and partnerships will continue to focus on this new world.
Third, how much more influencers can grow their business when they work with a manager to help target key partners and negotiate on their behalf.
Finally, there are certain age demographics that have leaned into this because the “talent” is already online and going after this as a career. There are certainly more opportunities for others to still grow a business and career in this space. We still have so much further to go.
🛍️ Quick note: I write a lot (too much good stuff to share!) so if you’re reading via email only, you may need to click through to the web version or read on the Substack app. I promise it will be worth it. 🛍️
Fashion & Beauty Finds
For Fall preview I’m noticing a lot of pajama inspired silk tops with contrast trim. This from Asceno and I love this (machine washable) version from Negative with these matching pants.
Flore Flore are a fashion favorite t-shirt and tank for good reason. Super impressive quality. I found this tank and this banded cuff long sleeve as exclusives to Moda Operandi. Popular black and white contrasting trim trend continuing.
Added a few great belts to my belt edit. Love this new eyelet embellished Toteme and gorgeous organic buckle from Gabriela Hearst. If you are looking for a great belt do not miss Déhanche’s 30% off sale for July 4th. I love the Hollyhock design from the brand. Both classic and edgy at the same time.
Remember the Bruno Interior sweater from LY? I expect this Leset sweater to make a statement this fall.
The Chloé wedge sandals have arrived at Moda Operandi. It’s a summer sandal you can easily transition into fall.
This Savette Pochette in navy leather has lovely lacing details and would work for a casual or dressed-up look.
Dries jackets at Moda - OMG! The sleeves, these dark details, this EVERYTHING!
Jacquemus x Nike launching soon and looking very cool. I would expect nothing less from this collab and smart timing leading into the Olympics and Jacquemus is nailing marketing content.
Jenna Lyons shared with the NYTimes Style Magazine her beauty favorites in a very Into The Gloss manner. I agree with many of her favorites and use this flush balm (I have a couple shades), the Laneige sleeping lip mask, the Merit Solo Shadow (I like Nelson for a smoky eye) and the Biologique Recherche Lotion P50 (I was using daily, but now I use 1-2 days a week when I don’t use a retinol. I use with these reusable bamboo rounds.) She really makes the case for the LMYA laser and the results on the website are impressive (see here.)
What a fun fashion styling trick! Use your clip-on earrings (which we learned are having a moment from this Marie Claire piece) to style the straps on your tank top.
Continuing with the ear accessorizing trend, WSJ published an article on multiple ear piercings trending. YES! Proud owner of six which apparently puts me right between Charlize Theron and Beyoncé. I started with tiny studs (like this, and this) went on to mini hoops that are tiny enough for me to stack with and now I’ve been playing with these cool round cut lab-grown sapphires* and such a fun statement when I stack the 2 and the 3 carats. Finally, for multiple holes I love this looped style.
Split Rings - but not Tiffany & Co.
Split Rings - after sharing details about the new Elsa Peretti Tiffany & Co. split ring earlier this week I’m noticing the trend other places too. The phenomenon is the "Baader-Meinhof Phenomenon" or "Frequency Illusion."4 Here are a few I’ve discovered just this week:
I’ve been wearing this* on my pinky and to say I’m obsessed is an understatement. It is edgy but also classic. You can also wear on other fingers but I love it on my pinky and I can also stack with my wedding and anniversary band on my ring finger for a more stacked look. Love it.
this gold and diamond version from Stone and Strand is a new delivery at Net and she’s simple and beautiful.
personalization is a fun way to play with a split ring - on Ariel Gordon’s ring you can select two different birthstones to signify loved ones or a modern take on a best friend ring.
This Bisjoux ring on Etsy has great reviews, is brass so it is well priced and the organic shape is on trend.
How to drive sales WITHOUT discounts
Brands and retailers are increasingly seeking alternatives to discounts for driving sales. While price cuts offer quick revenue boosts, they can erode profit margins and brand value. Let's explore some creative promotional strategies retailers are using to attract customers and boost sales without slashing prices.
GWP5 : Historically I think of this with cosmetics. Spend $50 at the Clinique counter buying the 3 step routine and get a travel pouch filled with a lipstick, eyeshadow palette, fragrance sample and mini Dramatically Different Moisturizer. Now we are seeing this applied on a bigger scale. The one that is tempting me this weekend is the MZ Wallace spend $300 and get a Small Accordion Cosmetic bag (it’s really cute and retails for $95.)
Included in this, are Loyalty programs and what is often referred to as “merch.” How I’ll describe “merch” in this example is a product that doesn’t necessarily fit in with your current category/categories but has your name on it. Think of Glossier stickers, sweatshirts, baseball hats and water bottles. They could sell these items or give them away with a threshold purchase. Here are a few examples:
Glossier - currently as I write this, there is a Glossier Balm Dotcom Quintet where you also receive a free sticker sheet. You are able to select which 5 you want and then the sticker sheet is the added treat.
Merit - the tote you receive on your first purchase on the DTC website. Currently they have the new Tove bag which you receive if you spend $100. The evening set helps you meet this threshold and you are able to select your own shades of their popular flush balm, day glow and signature lip (for a statement lip I love Vermillion!)
Versed - also founded by Katherine Power (she founded Merit too and you can read all about my Brand Crush on KP and her brands here) you receive the viral bubble headband. The only way to earn this headband is (at the time of writing this send) to spend $50 on Versed products and you will receive free shipping at $40 and the headband is automatically added to your cart for $0.00. I recommend trying this I love the cleansing balm, this and a new lip oil.
YSE Beauty - this week launched Le Tote which you receive the cute striped tote free when you spend over $125. Retailers are able to get a sharp price point on a product and buy driving up the order to $125 it is worth it to throw in the extra item.
Wondering where brands find these cool products? Sometimes they develop in house and sometimes they partner with agencies. Twelvenyc is one agency that I think does incredibly cool products for GWPs, launches and special events.
Limited Edition - offering a product for a limited time drives urgency and if it is a product customers love and want, you can drive revenue without offering a discount. When Jones Road Beauty offers the mini Miracle Balms this drives sales without discounting product. They are generally offered only twice a year for a limited time. Currently Clinique launched limited edition products in their long-time popular (and viral) Black Honey. Extending from the Almost Lipstick in Black Honey they added a few other SKUs.
Affinity products - designing a product that helps promote other products to drive the sale. My favorite of these recently is the Rhode iPhone case to hold the lip gloss. The iPhone case is so cool that it drives the sale of this item and the other product. Of course the trick to this is to design really cool products. Always the goal but this takes a special touch. Sam Sonntag designed the Rhode product.
Customization and Personalization - if a product offers free monograming or styling services this can be a way to “promote” a product without any discounting. At the time of writing this send, Leatherology is doing a free embossing with purchase. You can select a fantastic cross-body like this and add your initials. This limited time event will help drive sales.
In the next two weeks we have two major sales that do include discounts. Nordstrom Anniversary Sale is July 15-August 4th. Influencer Cardmembers are able to shop starting July 11th, clearly to seed inventory so they can share with their community. Amazon Prime Day is July 16 - July 17. Both are major off-price events. Both retailers start teasing early. Nordstrom changes the app color from white to yellow, new Hero images on the Homepage and allows you to preview and build your wishlist with new items at discounts - much of the products bought just for the Anniversary Sale. Amazon starts promoting with new site Hero images and special marketing tape on the boxes in the week or so leading up to the event. Customers are well aware of what is coming up! Other retailers either take advantage of a discount shopper by holding events around the same time or don’t bother with promotions and purposely hold their events earlier or later in the season.
Substacks to Scroll
One of the many gems of Substack - discovering new pieces to read from the Substack voices I love!! So here is what I saw you recommend this week and oh my, it is so good!
- was a great read on Miu Miu and creativity that I discovered via a post from .
- has amazing taste, style and joy in dressing. I saw she recommended “The Monthly Wardrobe Report & June Scrapbook” and it is a great read with plenty of style inspiration from Harriet Hadfield and those that are inspiring her (and now inspiring me too!)
For
’s “Outfit ideas to get you through summer! (PT. 1)” wrote “This was so much fun to scroll through. Jalil’s style is like a Pandora’s box of exciting ideas.” And if anyone knows anything about exciting ideas in dressing it is Leandra! So I trust her on this one and you should too.- mentioned ’s “And just like that ... it's July!” with so many fun beauty finds!
I discovered
when from strongly recommended and I agree. Great content!- led me to read “(Long) Weekend Recs #54: Real-Life Travel Tips from Two Busy Moms” because one of my favorite reads is how people pack and what they travel with. also interviewed for and it is another great read.
And one I recommend: from
all about finding the right bra from the experts at Melmira. I highly recommend getting professionally fitted for a bra - especially if you aren’t happy with what is in your drawer now.
Enjoy your Sunday Scoop. xx
Sarah Shapiro
What’s Next
July I’m feeling sporty with the Olympics (maybe that is an easter egg, and announcing that is certainly not how you are supposed to do that) and I’m already excited for Fall trends. But I’ll keep us squarely in summer for a bit longer. I’m not rushing to Labor Day…let’s enjoy July!
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FYI: I use affiliate links where applicable which means I may get a small commission from things you buy (at no cost to you.) Thank you for supporting my work and trusting me. Love that we can enjoy Fashion & Retail together in this space.
Items marked with * have been kindly gifted by brands. Thoughts, selections, and reviews are my own.
tl;dr = Too Long Didn’t Read. aka your Cliff Notes
I personally pulled this information from online resources. I’m sure locations are opening and closing and this could be inaccurate. FYI
YMAL = You Might Also Like - seeing improved recommendations
"Baader-Meinhof Phenomenon" or "Frequency Illusion” is a cognitive bias where, after noticing something for the first time, there is a tendency to notice it more often, leading to the belief that it has increased in frequency.
GWP = Gift With Purchase
I am so grateful for your kind words, and love even more that now you know Harry, whom I know from Anna of The Wardrobe Edit. This is the best community. And I can't BELIEVE how much work and value goes in to each of your posts! XO
The wrap ring you purchased is beautiful. I like one pair of earrings on at a time. I like 17mm studs or around that size. Have you tried the Uniqlo supima cotton t shirts? They are beautiful and the price is outstanding.