Farfetch to invest up to $200 million in Neiman Marcus
Online luxury fashion retail platform Farfetch said it will invest up to $200 million in Neiman Marcus Group, part of an effort to give the storied department store chain a digital makeover.
Why It Matters: A number of other department stores including Macy’s have been under pressure to shore up their e-commerce operations or spin off the more profitable segment.
Context: Neiman Marcus, which also owns Bergdorf Goodman, plans to move Bergdorf's website and mobile application onto a new platform using Farfetch’s technology.
- Neiman is hoping the digital refresh will help its brands reach younger consumers and expand internationally.
- The department store will also use Farfetch’s international services.
- Bergdorf Goodman and Neiman's namesake brand will join Farfetch’s digital marketplace where it will sell its products.
What They’re Saying: “This is an incredible opportunity to amplify our brand, further embed the Bergdorf Goodman experience across online and in-store, and continue our investments to further establish Bergdorf Goodman as a digital luxury leader on a global scale,” Bergdorf Goodman President Darcy Penick said.
- Neiman declined to comment on valuation or on a future sale or IPO of the business.
Details: The investments will give Farfetch a minority stake in Neiman Marcus.
- Farfetch joins existing investors PIMCO and Sixth Street Partners.