Brand management companies Authentic Brands Group and Saks Global have developed a new joint venture called Authentic Luxury Group (ALG) that aims to “redefine and expand the modern luxury experience.”
The Saks Global entity, which includes Saks Fifth Avenue and Saks Off Fifth brands, was created in parallel with parent company HBC’s recent acquisition of luxury retailer Neiman Marcus Group. After the deal with Neiman closes, Authentic will take a minority stake in Saks Global. Amazon is also investing in a new combined entity.
Authentic and Saks Global’s new joint venture will focus on Authentic’s luxury and accessible luxury brands, including Barneys New York, Judith Leiber Couture, Hervé Leger and Vince. ALG will build on the partners’ existing collaboration on the Barneys brand, which saw Barneys return to brick-and-mortar stores after its 2019 bankruptcy with a location in the Saks NYC flagship store.
“The creation of ALG builds on our long-standing successful collaboration with Saks, based on our original licensing agreement for Barneys New York,” said Jamie Salter, founder, chairman and CEO of Authentic, in a statement. It represents,” he said. “ALG will further nurture our brands by building on our complementary strengths and creating a multifaceted environment that reaches a broader audience through a wide range of services and experiences. Our shared commitment to our vision allows us to be at the forefront of modern luxury.”
Starting with Barneys
ALG will serve as an “incubator for brand growth” through new licensing agreements and distribution channels across fashion, retail, digital, hospitality, real estate, art and travel. To accomplish this, the partners will leverage Authentic’s expertise in brand licensing, as well as Saks Global’s e-commerce experience and store fleet.
Barneys New York will be ALG’s initial focus and the benchmark for the expansion of other brands in ALG’s roster. For example, ALG plans to expand other brands into lifestyle categories, similar to what it did with Barneys New York Residences, a luxury vacation rental property that opened in Tulum, Mexico, earlier this year. The group is considering forming similar real estate partnerships in the future to develop more branded luxury homes, condominiums and hotels. Barneys’ additional plans also include a stronger presence at Saks Fifth Avenue, enhanced retail stores and a dedicated e-commerce platform.
“ALG allows us to further enhance our services to luxury consumers,” Richard Baker, executive chairman of Saks Global, said in a statement. “We always strive to use our platform to provide huge opportunities for both established and emerging brands to expand their reach in the luxury fashion space, and this new platform does just that. Masu.”
