The e-commerce giant is among the players investing in the $2.65 billion deal that will have Richard Baker’s HBC buyand meld it with Saks into a new organization called Saks Global. Cloud-based commerce company Salesforce also plans to invest as the transaction closes. Investigation Into Tourist's Killing at Fashion Island Continues Following Three Arrests
“Are they managing it as part of an investment portfolio like a VC fund or a PE fund would, or are they going to manage it as if this is a strategic partner where they’re going to codevelop opportunities?” Portell said. “There is an argument to be made that Amazon is propping up a sizable competitor in the department store space just to keep the space viable,” Portell said.
“The luxury consumer is an incredibly important segment of the consumer base that Amazon has an underrepresentation in,” Portell said. “Affluent consumers have buying power, have less price sensitivity, have more advanced tech acceptance. They are an incredibly appealing consumer for any retailer, and it’s a difficult one to break into because the brand value is so important.
With a market capitalization topping $2 trillion and cash on hand of more than $73 billion, Amazon does not need Saks or Neiman Marcus or, really, fashion.