Saks Global and Authentic Brands Group Form Joint Venture to Boost Luxury Brands
Key Takeaways:
•Saks Global and Authentic Brands Group (ABG) Collaboration: A new joint venture titled Authentic Luxury Group will focus on expanding luxury and accessible luxury brands like Barneys New York, Judith Leiber Couture, Hervé Léger, and Vince.
•Strategic Licensing and Distribution: The venture will promote brand growth through multiple sectors, including fashion, retail, hospitality, real estate, digital, art, and travel.
•Global Expansion Potential: The partnership aims to expand brands into key markets such as the Middle East, China, and Korea, leveraging Saks Global and ABG’s established networks.
•Focus on Growth: Authentic Luxury Group is targeting the creation of a multi-billion-dollar platform within five years, developing existing brands into full lifestyle offerings.
•Future Developments: The venture will focus on luxury distribution within department stores and digital platforms, with potential future involvement of Saks Off 5th and ABG’s art business, Iconic Images.
Saks Global and Authentic Brands Group (ABG) have announced the creation of a joint venture called Authentic Luxury Group, aimed at expanding luxury and accessible luxury brands. The collaboration will focus on renowned names such as Barneys New York, Judith Leiber Couture, Hervé Léger, and Vince, with the goal of driving growth through strategic licensing agreements and diverse distribution channels.
The joint venture plans to promote its portfolio through fashion, retail, hospitality, real estate, art, and travel sectors, offering a comprehensive platform for brand development. Richard Baker, executive chairman of Saks Global, highlighted the unique nature of the collaboration, describing it as “a luxury version of Authentic Brands, half owned by Saks Global and half owned by Authentic Brands.”
While plans for reopening the iconic Barneys Madison Avenue flagship have been ruled out, Baker mentioned potential growth for Barneys and Saks stores in key international markets like the Middle East, China, and Korea, utilizing ABG’s extensive global network. This is expected to enhance the reach of Barney-branded products across various categories.
The partnership between Saks and ABG has its roots in 2019, when ABG acquired Barneys New York, leading to the launch of a Barneys shop within Saks Fifth Avenue’s Manhattan flagship. With plans underway to grow the newly formed Authentic Luxury Group, the joint venture will focus on expanding brands such as Judith Leiber, Hervé Léger, and Vince into global lifestyle offerings.
Jamie Salter, CEO of ABG, expressed optimism about the venture, stating that the collaboration with Saks Global is set to create a multi-billion-dollar platform within the next five years. He also noted the opportunity to expand luxury categories for Barneys and other brands, utilizing Saks’ retail support to explore new avenues for growth.
As part of the partnership’s broader vision, the venture will continue to advance Saks Off 5th and explore potential new developments, including future options for Bergdorf Goodman. Authentic Luxury Group will also integrate ABG’s art business, Iconic Images, into its strategy, contributing to the company’s expansion into new markets.