Farfetch has closed on a new investment in Neiman Marcus Group (NMG).
The UK-based online shopping platform has closed a new minority common equity investment of $200 million in NMG on Tuesday, joining existing investors including PIMCO, Davidson Kempner Capital Management, and Sixth Street.
The investment was initially announced in April and was subject to the satisfaction of customary closing conditions. Following completion of the agreements, NMG is no longer a related party of Farfetch.
“We are pleased to share the successful closing of the investment by Farfetch in NMG and now that the commercial agreements are final, we are excited to transition to realizing the important benefits of this partnership,” said NMG CEO Geoffroy van Raemdonck in a statement. “Farfetch’s investment demonstrates its confidence in our omnichannel strategy, and we look forward to partnering with them to continue revolutionizing the luxury customer experience and delivering value to all our stakeholders.”
Farfetch previously announced that its investment in NMG would 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.
NMG said it will utilize the Farfetch Platform Solutions (FPS) technology to re-platform Bergdorfs, which will “seamlessly integrate” with the retailer’s iconic New York City flagship. Both Bergdorf Goodman and Neiman Marcus will also join the Farfetch Marketplace as a partner, the retailer added.
“I believe the U.S. luxury market is at a pivotal point,” said José Neves, Farfetch founder, chairman and CEO, in a statement. “Whilst the U.S. is proving to be a long-lasting source of growth for the luxury industry, fueled by younger generations who are highly engaged with the category, businesses will have to significantly upgrade their digital capabilities – powering both online and offline customer journeys – to meet these new customer expectations and stay ahead in what is going to be a competitive space in the coming years.”
Neves added that he “greatly admires” the Neiman Marcus Group and shares its vision for the future of luxury. “This partnership 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,” Neves concluded.
“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,” van Raemdonck stated in April. “Farfetch’s investment demonstrates their confidence in our omnichannel strategy, and we look forward to partnering with Farfetch to continue revolutionizing the luxury customer experience and delivering value to all our stakeholders.”
I believe the U.S. luxury market is at a pivotal point, said Bergdorf Goodman promoted two female executives as it continues to invest in its online and in-store experience. The New York City luxury retailer said on Friday that it has promoted Cheryl Han to SVP of BergdorfGoodman.com and customer strategy, while Melissa Xides was promoted to SVP of Bergdorf Goodman stores and brand operations.