Saks’ Online CEO, Marc Metrick, asserts that Amazon’s tech expertise will be crucial for the merger of Saks Fifth Avenue and Neiman Marcus. The $2.65 billion deal is set to create a robust entity aimed at tackling the retail sector’s woes.

Amazon and Salesforce will acquire minority stakes in the new company, leveraging their strengths in customer data analysis and logistics to enhance online personalization and shopping convenience. “You future-proof brands like Saks or Neimans through technology,” Metrick emphasized. Their advanced analytics and improved logistics are expected to offer customers a superior shopping experience.

Saks and Neiman Marcus bring a wealth of luxury retail knowledge, retaining their deep-rooted customer relationships and physical stores, essential in the luxury ecosystem. Hudson’s Bay Co., the owner of Saks, expects the merger to strengthen bargaining power with vendors, cut down supply-chain costs, and elevate the brand’s digital capabilities.

Despite potential antitrust scrutiny by the Federal Trade Commission, Metrick remains optimistic, focusing on growth rather than shrinking operations. The merger aims to retain Neiman Marcus and Bergdorf Goodman brands, valuing their historical significance and customer loyalty.

As US department stores struggle, this merger, guided by Amazon and Salesforce’s technological prowess, may symbolize a new era in retail.