Neiman Marcus Group (NMG) abandoned plans to use Farfetch to update its online store and app, the company confirmed. As a result, the apparel retailer will no longer join Farfetch’s marketplace.
NMG is the parent company of Neiman Marcus, Bergdorf Goodman, Last Call and Horchow.
“NMG is well positioned with exceptional technology, talent, and resources to further invest in and expand our digital and ecommerce capabilities,” a Neiman Marcus representative told Women’s Wear Daily. “Our focus remains on continuing to deliver a differentiated luxury experience across all facets of our integrated retail model, and to position our business for sustainable, profitable growth. We appreciate Farfetch, which continues to be a minority investor in NMG.”
Neiman Marcus ranks No. 72 in the Top 1000. The Digital Commerce 360 database ranks North America’s leading online retailers by their web sales. Farfetch is No. 30 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the top 100 online marketplaces by gross merchandise value.
Neiman Marcus and Farfetch
The department store first announced a partnership with Farfetch in 2022. Farfetch, a luxury fashion online marketplace based in the U.K., invested $200 million in Neiman Marcus. That made Farfetch a minority investor in Neiman Marcus, which it remains today.
As part of the agreement, Bergdorf Goodman planned to replatform its website and mobile app using Farfetch Platform Solutions. Both Bergdorf Goodman and Neiman Marcus agreed to join Farfetch marketplace as partners and expand to new global markets, they said in a joint press release at the time.
“We continue to partner closely with thousands of brands and boutiques around the world to provide an elevated online luxury experience for millions of customers,” a Farfetch spokesperson said a statement regarding the end of the partnership.
Farfetch’s acquisition
NMG and Farfetch ended their relationship just days after Coupang completed its acquisition of Farfetch. Farfetch faced potential bankruptcy and agreed to be taken private by the South Korean ecommerce platform. The deal consisted of $500 million in bridge loans through a partnership with the investment firm Greenoaks Capital Partners.
Coupang ranks No. 12 in the Global Online Marketplaces Database. It operates the largest online marketplace in South Korea.
“Farfetch is a landmark of the luxury landscape and has been a transformative force in demonstrating that online luxury is the future of luxury retail,” said Bom Kim, founder and CEO of Coupang. “Farfetch will rededicate itself to providing the most elevated experience for the world’s most exclusive brands, while pursuing steady and thoughtful growth as a private company. We also see tremendous opportunities to redefine the customer experience for luxury clients everywhere.”
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