LONDON — Farfetch is taking a stake in Neiman Marcus Group as part of a broader strategic partnership that will see Bergdorf Goodman and Neiman Marcus join the Farfetch platform, both companies confirmed on Tuesday.
Farfetch said the partnership builds on Farfetch’s Luxury New Retail vision and advances NMG’s “pioneering strategy to revolutionize integrated luxury retail.”
The initial focus will be on re-platforming the Bergdorf Goodman website and mobile application to expand its global capabilities and services.
Farfetch said it will make a minority common equity investment of up to $200 million in NMG, joining existing investors including PIMCO, Davidson Kempner Capital Management and Sixth Street.
NMG said it will use the proceeds to “further accelerate growth and innovation through investments in technology and digital capabilities.”
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As part of the deal, NMG said it will use Farfetch Platform Solutions to re-platform the Bergdorf Goodman website and mobile application. As a result, Bergdorf Goodman will introduce its digital customer experience and curated offering to customers globally, integrating seamlessly with the iconic New York City flagship.
Both Bergdorf Goodman and Neiman Marcus will join the Farfetch Marketplace as a partner, adding participating brands in key global geographies.
“I believe the U.S. luxury market is at a pivotal point,” said José Neves, Farfetch founder, chairman and CEO.
“While 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.”
Geoffroy van Raemdonck, CEO of NMG Group, said the new deal would accelerate the group’s e-commerce 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 revolutionizing the luxury customer experience and delivering value to all our stakeholders.”
The completion of the global strategic partnership and investment is expected by the third quarter of 2022, subject to the satisfaction of customary closing conditions.
J.P. Morgan is serving as exclusive financial adviser to NMG, and Kirkland & Ellis LLP and Norton Rose Fulbright LLP are serving as legal counsel. Bryan Cave Leighton Paisner and Taylor Wessing LLP are serving as legal counsel to Farfetch.