Luxury retailers Saks Fifth Avenue and Neiman Marcus have suffered double-digit sales declines since their blockbuster merger last year — while downmarket rivals Bloomingdales and Nordstrom have seen sales surge, according to a report.
The $2.7 billion merger six months ago, which also included Bergdorf Goodman, created the largest luxury retailer in the world. But the new powerhouse, known as Saks Global, has struggled to squeeze growth out of the posh department stores during a global slowdown in luxury spending, Bloomberg reported on Monday.
Saks Fifth Avenue sales fell 16% during the first quarter ended in April compared to a year ago, while Neiman Marcus and Bergdorf Goodman dropped 10%, according to Bloomberg Second Measure data, which looks at debit and credit card purchases.
Saks Fifth Avenue and Neiman Marcus are more exposed to the high-end luxury downturn than Bloomingdales and Nordstrom, the company said. Stephen Yang Saks