Amazon changed the face of retail over the last 20 years but has failed miserably to make inroads in the luxury goods market. Now, it's trying something new. The online retailer has purchased a small stake in retailer Neiman Marcus and will reportedly provide data and logistics to Neiman and its new owner, Saks Fifth Avenue.
Yesterday, Saks Fifth Avenue and parent HBC announced the $2.65 billion acquisition of Neiman Marcus , putting the largest US luxury retailers under the same roof,"How do you future-proof a brand like Saks or Neimans or Bergdorf? You do that through technology," Saks CEO Marc Metrick toldAmazon has attempted to access the luxury retail market over the years, but the major brands want nothing to do with it.
Amazon has tried to break into bricks-and-motor retail with varying degrees of success. Its ownership of Whole Foods is one positive example, but its cashierless Go stores have With the acquisition of Neiman Marcus by Saks' parent HBC, Amazon is getting involved in an organization expected to do a combined $10 billion worth of annual sales. There's no word on the size of Amazon's investment, but it seems a relatively safe bet compared to the more radical brick-and-mortar experiments it's tried in the past.
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