Saks Fifth Avenue parent company HBC said on Thursday The company will acquire the Neiman Marcus Group in a $2.65 billion deal and merge the 2 renowned retailers.

The merger will create Saks Global, which is able to include Saks Fifth Avenue, Saks OFF 5TH, the Neiman Marcus department store chain of the identical name, and Bergdorf Goodman.

“We are very excited to take this step and bring these iconic luxury brands together,” HBC CEO Richard Baker said in an announcement. “For years, many in the industry have anticipated this transaction and the benefits it would bring to customers, partners and employees.”

“This is an exciting time in luxury retail,” Baker added, pointing to technological advances that would “redefine” the shopper experience. He was one in all several executives from the 2 corporations who indicated that technology could be a spotlight going forward.

As a part of the deal, Saks.com CEO Marc Metrick will assume the role of CEO for the Saks Global business. Ian Putnam, president and CEO of HBC Properties and Investments, will turn into CEO of Saks Global's real estate and investment business. Both will report back to Baker, who will function executive chairman of Saks Global.

Geoffroy van Raemdonck, CEO of the Neiman Marcus Group, called the partnership a “proactive decision in an evolving retail landscape.”

The deal comes amid a turbulent period for traditional brick-and-mortar retailers within the wake of the e-commerce boom, a strain exacerbated by post-pandemic demand for experiences that prompted consumers to spend on restaurants or travel quite than on goods that they had purchased during lockdown.

The department store segment specifically is struggling to draw younger customers amid a general decline in spending on non-essential consumer goods.