Neiman Marcus Ends Partnership With Farfetch
Neiman Marcus Group on Wednesday announced it has abandoned plans to use Farfetch’s e-commerce software to revamp the luxury department store’s online storefront and app. The luxury department store chain will also not join Farfetch’s marketplace.
Neiman Marcus Group first entered an agreement with Farfetch in 2022, when the luxury e-tailer invested $200 million in the department store chain. As part of that deal, Bergdorf Goodman was supposed to update its own e-commerce experience to use Farfetch’s software, Farfetch Platform Solutions, which provides online shopping tools for companies like Harrods, Chanel, and Thom Browne.
Farfetch will remain a minority investor in Neiman Marcus Group, as the department store chain continues investing its original capital injection into building its own e-commerce technology, according to a person familiar with the matter.
Total Retail's Take: This news comes a week after South Korean e-commerce giant Coupang completed its acquisition of Farfetch’s assets, which seemingly led to a re-evaluation of the Neiman Marcus partnership. Regarding Neiman Marcus, it's opting to keep its website and app in-house, preferring to control the experience of its luxury shoppers vs. cede control to the online marketplace Farfetch. The financial challenges of Farfetch likely weighed into this decision for Neiman Marcus Group.
