Luxury fashion platform Farfetch is investing in US retailer Neiman Marcus Group (NMG) as part of a new global strategic partnership between the two companies.
Farfetch said it plans to take a minority stake in Neiman Marcus for up to $200 million, joining existing investors including Pimco, Davidson Kempner Capital Management and Sixth Street.
“I believe the US luxury market is at a pivotal point,” said José Neves, Farfetch’s founder, chairman and CEO. He said that while the US is proving to be “an enduring source of growth for the luxury industry,” the companies are need to “significantly improve their digital skills” in order to remain competitive.
“This partnership is about revolutionizing the luxury landscape globally, both online and offline, by combining NMG’s iconic presence in the US with Farfetch’s vision and technology for the new luxury retail industry,” said Neves.
Farfetch and Neiman Marcus announce partnership
Neiman Marcus Group will use the investment to further accelerate growth and innovation through investments in technology and digital capabilities.
Additionally, as part of the partnership, the group will use Farfetch Platform Solutions (FPS) to power the Bergdorf Goodman brand’s website and mobile app. The luxury department store, the off-price retailer Lastcall and the interior brand Horchow also belong to the Neiman Marcus Group.
“[Neves] and the entire Farfetch team have built a world-class technology platform and are the ideal partner to help us transform Bergdorf Goodman into an even stronger global digital luxury retailer,” said Geoffroy van Raemdonck, CEO of Neiman Marcus Group. ” Farfetch’s investment demonstrates confidence in our omnichannel strategy and we look forward to working with Farfetch to continue revolutionizing the luxury customer experience and delivering value to all of our stakeholders.”
This translated post previously appeared on FashionUnited.uk.