Farfetch takes stake in Neiman Marcus Group to fuel online growth
Neiman Marcus Group is looking to accelerate its online growth via a partnership.
Online luxury platform Farfetch Ltd. will make an investment of up to $200 million in NMG, with the U.S. retailer using the proceeds “to further accelerate growth and innovation through investments in technology and digital capabilities.” The investment is part of a wider strategic partnership that will include Neiman Marcus and Bergdorf Goodman joining the Farfetch Marketplace as partners.
The initial focus of the agreement will be on re-platforming the Bergdorf Goodman website and mobile application to expand its global capabilities and services. NMG 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, the two companies stated.
Additionally, Neiman Marcus is committed to using select FPS modules, including foundational international services.
“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,” said José Neves, Farfetch founder, chairman and CEO. “We share the same unwavering vision for the future of luxury, with the customer at the center of all we do.”
In making its investment, Farfetch joins existing NMG investors including PIMCO, Davidson Kempner Capital Management, and Sixth Street.
“We are thrilled to be partnering with Farfetch to accelerate our e-commerce strategy, creating a seamless customer experience,” said Geoffroy van Raemdonck, CEO of Neiman Marcus Group. “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.”
Launched in 2008, Farfetch began as an e-commerce marketplace for luxury boutiques around the world. Today, its marketplace connects customers in over 190 countries and territories with items from more than 50 countries and more than 1,400 of the world’s best brands, boutiques and department stores.
Farfetch’s additional businesses include Browns and Stadium Goods, which offer luxury products to consumers, and New Guards Group, a platform for the development of global fashion brands. In January, the company announced it was acquiring upscale, cult-fave beauty retailer Violet Grey. The acquisition comes ahead of the launch of beauty on the Farfetch marketplace.
“Our partnership with Neiman Marcus Group is another example of how FPS has become a preeminent digital partner for the luxury fashion industry,” said Kelly Kowal, chief platform officer at Farfetch. “This is a significant digital transformation opportunity that will allow us to unlock massive value for Neiman Marcus Group, its shareholders and its customers, who will now be able to shop from wherever they are in the world.”
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The completion of the global strategic partnership and investment is expected by the third quarter of 2022.
J.P. Morgan is serving as exclusive financial advisor 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.