Brand management firm Authentic Brands Group and Saks Global have developed a new joint venture called Authentic Luxury Group (ALG) that is aimed at “redefining and expanding the modern luxury experience.”
The Saks Global entity — which encompasses the Saks Fifth Avenue and Saks Off 5th brands — was created in tandem with parent company HBC’s recent acquisition of fellow luxury retailer Neiman Marcus Group. Following the closing of the Neiman deal, Authentic will make a minority investment in Saks Global. Amazon also has invested in the new combined entity.
Authentic and Saks Global’s new joint venture will center on Authentic’s luxury and accessible luxury brands, which include Barneys New York, Judith Leiber Couture, Hervé Léger and Vince. ALG will build on the partners’ existing collaboration for the Barneys brand, which saw Barneys return to brick-and-mortar following its 2019 bankruptcy via an installation at the Saks NYC flagship.
“The creation of ALG represents years of successful collaboration under our initial licensing agreement with Saks for Barneys New York,” said Jamie Salter, Founder, Chairman and CEO of Authentic in a statement. “Building on our complementary strengths, ALG will further cultivate our brands by creating a multifaceted environment that reaches a broader audience through a wide range of offerings and experiences. Our shared commitment to excellence and strategic vision positions us at the forefront of modern luxury.”
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Beginning with Barneys
ALG will serve as “an incubator for brand growth” through new licensing agreements and distribution channels that will span fashion, retail, digital, hospitality, real estate, art and travel. To accomplish this, the partners plan to leverage Authentic’s expertise in brand licensing alongside Saks Global’s ecommerce experience and store fleet.
Barneys New York will be ALG’s first focus and will set the tenor for the expansion of other brands in the ALG roster. For example, ALG plans to extend its other brands into lifestyle categories, similar to what it has done with the Barneys New York Residences, a set of high-end vacation rentals that opened in Tulum, Mexico earlier this year. The group will now look to create similar real estate partnerships in order to develop more branded luxury residences, condominiums and hotels. Additional plans for Barneys also include an enhanced presence at Saks Fifth Avenue, a strengthened retail footprint and a dedicated ecommerce platform.
“With ALG, we are able to further our efforts to serve the full continuum of luxury consumers,” said Richard Baker, Executive Chairman of Saks Global in a statement. “We always strive to use our platform to give both established and emerging brands greater opportunities to extend their reach in luxury fashion, and this new platform will do just that.”
