Farfetch has just announced that it will invest $200 million in Neiman Marcus Group (NMG), as part of a strategic partnership to support digital growth and innovation projects for the luxury brand group. The completion of this strategic partnership is targeted for the third quarter of 2022.
“I believe the U.S. luxury market is at a pivotal point,” says José Neves, founder and CEO of Farfetch. “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,” insists the CEO of the Portuguese-British unicorn.
The CEO says he shares the “the same unwavering vision for the future of luxury” with Neiman Marcus Group, adding that 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.”
“We are thrilled to be partnering with Farfetch to accelerate our e-commerce strategy, creating a seamless customer experience,” stresses Geoffroy van Raemdonck, CEO of Neiman Marcus Group, in a statement. “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.”
Under the partnership, Farfetch Platform Solutions (FPS) will reshape and power the website and mobile application of Bergdorf Goodman, an NMG-owned brand; and Neiman Marcus is committed to using selected FPS modules, including foundational international services.
Farfetch will also make up to $200 million minority investment in NMG to support digital growth and innovation initiatives, joining shareholders PIMCO, Davidson Kempner Capital Management and Sixth Street, among others. The completion of the global strategic partnership and investment is expected by the third quarter of 2022.