Luxury fashion platform Farfetch Limited has partnered with Neiman Marcus Group (NMG) with an initial focus on re-platforming the Bergdorf Goodman website and mobile application to expand its global capabilities and services. As part of its commitment to the partnership and NMG’s long-term success, Farfetch will make a minority common equity investment of up to $200 million in NMG, joining existing investors including PIMCO, Davidson Kempner Capital Management, and Sixth Street. NMG will use the proceeds to further accelerate growth and innovation through investments in technology and digital capabilities.
Farfetch has invested for many years in its Luxury New Retail vision through its differentiated global technology platform. Neiman Marcus and Bergdorf Goodman have pioneered and continued to redefine luxury retailing in the United States, with exclusive products, an omnichannel offering and a team of more than 3,000 talented selling associates, which enable NMG to have an unmatched relationship with the luxury-obsessed customer.
Through this agreement, NMG will utilize Farfetch Platform Solutions (FPS) 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. Additionally, Neiman Marcus is committed to using select FPS modules, including foundational international services. Both Bergdorf Goodman and Neiman Marcus will join the Farfetch Marketplace as a partner, adding participating brands in key global geographies.
“I believe the U.S. luxury market is at a pivotal point,” said José Neves, Farfetch Founder, Chairman and CEO. “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.”
“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. Farfetch’s investment demonstrates their confidence in our omnichannel strategy, and we look forward to partnering with Farfetch to continue revolutionizing the luxury customer experience and delivering value to all our stakeholders.”
“By leveraging the technology and expertise of Farfetch, we will further advance our integrated strategy to expand our reach and services to customers globally, bringing our one-of-a-kind iconic New York fashion brand to customers worldwide,” said Darcy Penick, President of Bergdorf Goodman. “This is an incredible opportunity to amplify our brand, further embed the Bergdorf Goodman experience across online and in-store and continue our investments to further establish Bergdorf Goodman as a digital luxury leader on a global scale.”
Completion of the global strategic partnership and investment is expected by the third quarter of 2022, subject to the satisfaction of customary closing conditions.