Farfetch Invests $200M in Neiman Marcus Group
Farfetch has made a new investment in Neiman Marcus Group (NMG), reports Yahoo. The U.K.-based online shopping platform inked a new minority common equity investment of up to $200 million in NMG on Tuesday, joining existing investors including PIMCO, Davidson Kempner Capital Management, and Sixth Street.
According to Farfetch, the investment in NMG will be used to further accelerate growth and innovation in the Texas-based retailer’s technology and digital capabilities. The company’s initial focus will be on re-platforming the Bergdorf Goodman website and mobile app in order to “expand its global capabilities and services,” the retailer said. Both Bergdorf Goodman and Neiman Marcus will also join the Farfetch Marketplace as a partner, the retailer added.
Total Retail's Take: Farfetch's new global strategic partnership with NMG "is about revolutionizing the luxury landscape globally, both online and offline, by combining NMG’s iconic presence in the U.S. and Farfetch’s Luxury New Retail vision and technology,” said Farfetch Founder, Chairman and CEO José Neves. Although a surprise move, it's one that potentially makes sense for both businesses. The online luxury platform will lend its technology to the department store group while hoping to gain stronger market share in the U.S. NMG's Bergdorf Goodman brand will receive a digital boost as it aims to attract younger consumers with omnichannel services and seamless customer experience.
“By leveraging the technology and expertise of Farfetch, we will further advance our integrated strategy to expand our reach and services to customers globally, bringing our one-of-a-kind iconic New York fashion brand to customers worldwide,” said Darcy Penick, president of Bergdorf Goodman. Completion of the global strategic partnership and investment is expected by the third quarter of 2022.
Kristina Stidham is the digital content director at Total Retail and sister brands Women in Retail Leadership Circle and Women Leading Travel & Hospitality at NAPCO Media. She is passionate about digital media and handles video, podcast and virtual event production for all brands. You can often find her at WIRLC, TR, WLT&H or industry events with her camera and podcasting equipment—or at home on Zoom—recording interviews with thought leaders and business executives.
Kristina holds a B.A. in Media Studies and Production from the Temple University Klein College of Media and Communication in Philadelphia. Go Owls! When she's not in the office, she loves to go on long walks, sing around the house, hangout with her family and two pet guinea pigs, and travel to new places.