Farfetch invests up to $200m in Neiman Marcus in ‘pivotal point’ for US luxury market

Farfetch will make a minority investment of up to $200m in Neiman Marcus, joining existing investors such as PIMCO, Davidson Kempner Capital Management and Sixth Street.

Neiman Marcus said the cash injection from Farfetch would be used to “further accelerate growth and innovation through investments in technology and digital capabilities.”

As part of this strategic partnership, Neiman Marcus will use Farfetch’s suite of technology to re-platform the Bergdorf Goodman website and app. This will enable Bergdorf Goodman to offer its ranges to online shoppers internationally, integrated with its New York flagship store.

Both Bergdorf Goodman and Neiman Marcus will also join Farfetch’s online marketplace.

Farfetch founder, chair and CEO José Neves said: “I believe the U.S. luxury market is at a pivotal point.

“While 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.”

Neiman Marcus Group chief executive Geoffrey van Raemdonck added: “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.”