// Farfetch is taking a stake in Neiman Marcus Group as part of a broader strategic partnership
// The online retailer joins Neiman Marcus’ existing investors, which include Pimco, Davidson Kempner Capital Management and Sixth Street
Online luxury fashion retailer Farfetch will invest up to $200 million in US retail giant Neiman Marcus Group (NMG), which owns Neiman Marcus and Bergdorf Goodman, in a strategic partnership to develop the high-end department store’s online business.
Farfetch’s stake in the business will build on the online platform’s Luxury New Retail vision and advances NMG’s “pioneering strategy to revolutionise integrated luxury retail.”
As part of the partnership, Farfetch will be re-platforming the New York-based department store Bergdorf Goodman’s website and mobile app, to expand its global capabilities and services.
Both Bergdorf Goodman and Neiman Marcus will join the Farfetch Marketplace as partners.
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The move comes as luxury groups rush to meet strong demand for high-end fashion and accessories in the US, which emerged as the key market for the sector last year.
Farfetch founder and CEO José Neves said “I believe the US luxury market is at a pivotal point.”
The online marketplace will take a minority equity stake, and NMG said it will use the proceeds to “further accelerate growth and innovation through investments in technology and digital capabilities.”
NMG Group chief executive Geoffroy van Raemdonck said the new deal would accelerate the group’s ecommerce strategy, “creating a seamless customer experience”.
“José and the entire Farfetch team have built a best-in-class technology platform and are the ideal partner to help us grow Bergdorf Goodman to be an even stronger global digital luxury retailer.
“Farfetch’s investment demonstrates their confidence in our omnichannel strategy, and we look forward to partnering with Farfetch to continue revolutionising the luxury customer experience and delivering value to all our stakeholders.”
The expansion of Bergdorf Goodman’s ecommerce business into markets abroad could take place in a “matter of months”, Geoffroy van Raemdonck added.
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