NMG is the largest omnichannel luxury retailer in the U.S. and parent to Neiman Marcus and Bergodorf Goodman. Farfetch is a global platform for the luxury fashion industry that sells products from over 700 boutiques and brands from around the world. Under terms of the deal, both Bergdorf Goodman and Neiman Marcus will join the Farfetch Marketplace as a partner, adding participating brands in key global geographies. The partnership will initially focus on re-platforming the Bergdorf Goodman website and mobile app to expand its global capabilities and services.
Farfetch is also making a minority equity investment of up to $200 million in NMG, joining existing investors including PIMCO, Davidson Kempner Capital Management and Sixth Street. NMG plans to use the funding to accelerate its growth and innovation through technology and digital investments.
“I believe the U.S. luxury market is at a pivotal point,” José Neves,Farfetch founder, chairman and CEO, said in a statement. “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.”