By Teerasak @Adobe Stock

The parent of Saks Fifth Avenue sealed a $2.65 billion deal to buy rival Neiman Marcus, creating a powerhouse in luxury retailing that seeks to hang on to wealthy shoppers—all with a little help from AMZN 1.26%increase; green up pointing triangle.

The department-store chains had been negotiating for months and had explored a combination several times over the years. Both have struggled as some consumers spent less on pricey goods and fashion brands opened their own flagship stores.

The boards of both closely held companies approved the transaction, which they announced Thursday. The Wall Street Journal first reported Wednesday on the deal.

The combined company will have about $10 billion in annual sales and more than 150 locations, including Saks Fifth Avenue, Saks OFF 5th, Neiman Marcus and Bergdorf Goodman. […]

HBC has a history of investing in the companies it buys. It spent more than $500 million renovating Saks stores over the past five years as well as an additional $500 million upgrading its technology and digital footprint.

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