British-Portuguese online fashion retailer Farfetch has entered a strategic partnership with omnichannel luxury retailer Neiman Marcus Group (NMG).
As part of this partnership, Farfetch will make a minority common equity investment of up to $200m in NMG.
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NMG will use the proceeds from the investment to expedite its growth and innovation through investments in technology and digital capabilities.
The company owns the Neiman Marcus and Bergdorf Goodman brands among others.
Under the agreement, NMG will use Farfetch Platform Solutions (FPS) to re-platform the Bergdorf Goodman website and mobile app.
The brand will launch its digital customer experience and offering to customers worldwide by integrating with the New York City flagship.
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By GlobalDataNeiman Marcus will also use certain FPS modules, including foundational international services.
In addition, Neiman Marcus and Bergdorf Goodman will partner with Farfetch’s digital marketplace to add brands in key markets worldwide.
Farfetch founder, chairman and CEO José Neves said: “I greatly admire the Neiman Marcus Group, for its distinguished role in our industry both with Neiman Marcus and Bergdorf Goodman, and also for its stellar management team, including Geoffroy and Darcy.
“We share the same unwavering vision for the future of luxury, with the customer at the centre of all we do.
“This partnership is about revolutionising the luxury landscape globally, both online and offline, by combining NMG’s iconic presence in the US and Farfetch’s Luxury New Retail vision and technology.”
The strategic partnership and investment are scheduled to close in the third quarter of this year subject to customary closing conditions being met.
Farfetch will join existing NMG investors, including PIMCO, Davidson Kempner Capital Management and Sixth Street.
Earlier this year, the company revealed plans to buy US-based luxury beauty retailer Violet Grey for an undisclosed sum.
