Big things are happening in the corporate fashion world right now. Private equity firm Kohlberg Kravis Roberts (KKR) is making moves to acquire two luxury department stores: New York-based Sak's Fifth Avenue and privately owned Neiman Marcus. Though no deal has been made yet, the acquisition of these two companies could prove very fruitful for both stores and the equity firm.
The idea is that Saks' Fifth Ave and Neiman Marcus would continue to sell out of their own buildings, keeping up the face of two competing stores, but the back end would merge, thus cutting costs and competition for both of them.
Additionally, Sak's has serious footholds in New York and Palm Beach, whereas Neiman Marcus is known to do well in Texas, so a merger could help expand both companies' reach within the U.S., and possibly further.
Part of this acquisition would be to look at the possibility of spreading these stores into the untouched European market. There is nothing that points to this merger doing anything for a European expansion, but the musings on Wall Street point to the possibility.
We at myDROBE love these stores, and anything that'll let 'em prosper, we support. We'll be sitting back, eagerly waiting for the next phase of luxury department stores.
With Style,
Your MyDROBE Team
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