Amazon’s market cap surpasses $2 trillion for the first time
Amazon.com Inc.’s market value topped $2 trillion for the first time in afternoon trading Wednesday.
Scripps News
The parent company of Saks Fifth Avenue, in partnership with Amazon, will buy rival department store chain Neiman Marcus in a deal valued at $2.65 billion.
Richard Baker, CEO and Chairman of HBC, Tell The New York Times said the company “does not plan to close any stores or digital businesses or reduce services in any way,” even though the chains operate in many of the same markets.
Part of the appeal, Baker said, was the personal connection. “Customers love going into the store,” he said. “They love touching the product and spending time with personal shoppers.”
Neiman Marcus’ sales force was also attractive. “People have forgotten how important people are. When you sell luxury products, you need beautiful stores, beautiful salespeople, and trust from customers.”
The deal was first reported by The Wall Street Journal.
The two companies have been in negotiations for months and have explored the deal several times in recent years, the newspaper said. The merger is likely to face regulatory scrutiny as the Federal Trade Commission takes a closer look at consolidation in the fashion retail business.
The combined company would have annual sales of about $10 billion, people familiar with the deal said.
Amazon will take a minority stake in the new company and provide technology and logistics expertise, the Wall Street Journal reported. The new company will be called Saks Global. The other minority shareholder is Salesforce, the newspaper said.
HBC, the holding company that owns Sak’s and Hudson’s Bay, is financing the deal with $2 billion raised from existing investors, the Wall Street Journal reported. HBC did not respond to a request for comment.
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The newspaper also reported that Mark Metrick, CEO of SAC’s e-commerce business, will run the two merged companies.
Betty Lynn Fisher is a consumer reporter for USA TODAY. Reach her at [email protected] Or follow her on X, Facebook or Instagram @blinfisher. Sign up for The Daily Money free newsletter, which will include consumer news on Fridays,
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