What: Saks Global and Authentic Brands Group unveil plans to create a USD 9 billion luxury ecosystem through retail diversification, hospitality ventures, and strategic brand partnerships.

Why it is important: The partnership's ambitious transformation reflects a fundamental shift in luxury retail, where market control and operational efficiency combine with diversification into hospitality and entertainment to create a more resilient business model.

Saks Global and Authentic Brands Group are embarking on an ambitious strategy to transform luxury retail through a comprehensive ecosystem approach. The partnership, which controls 60% of US premium sales, aims to leverage their combined strengths to drive higher margins and shift power dynamics away from vendors towards retail. Their strategy includes streamlining the vendor matrix from 2,660 partners while implementing revised promotional calendars to enhance full-price selling. The venture's data strategy combines 250 million customer files with Amazon's analytical capabilities, enabling rapid market insights and improved decision-making. Beyond traditional retail, the group is expanding into hospitality with multiple development projects, including residential condos and hotels, while content creation represents 25% of ABG's business. This comprehensive approach aims to create a more integrated luxury experience, with projects already underway in the Middle East and Asia Pacific regions, demonstrating the global scope of their ambitions.

IADS Notes: The partnership's evolution marks a significant transformation in luxury retail strategy. Following October 2024's formation of Authentic Luxury Group, the venture has rapidly expanded its scope, building on December 2024's creation of a technology-driven luxury powerhouse through the Neiman Marcus merger. February 2025 saw the implementation of a comprehensive transformation plan, including significant vendor restructuring, while April 2025 brought the consolidation of commercial operations. The May 2025 announcement of hospitality projects demonstrates how this partnership is actively redefining luxury retail by creating a multi-faceted ecosystem that combines traditional retail expertise with innovative revenue streams and customer experiences.

Saks Global and Authentic seek to take control of luxury market