Saks Fifth Avenue parent HBC said on Thursday it will acquire Neiman Marcus Group in a $2.65 billion deal combining the storied retailers.

The combination will establish Saks Global, which will include Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus’ namesake department store chain and Bergdorf Goodman.

“We’re thrilled to take this step in bringing together these iconic luxury names,” HBC CEO Richard Baker. said in a statement. “For years, many in the industry have anticipated this transaction and the benefits it would drive for customers, partners and employees.”

“This is an exciting time in luxury retail,” Baker added, citing technological advancements that can “redefine” the customer experience. He was one of several executives between the two companies pointing to technology as a point of focus going forward.

As part of the deal, Saks.com CEO Marc Metrick will take the chief executive role for the Saks Global business. Ian Putnam, president and CEO of HBC Properties and Investments, will become CEO of Saks Global’s property and investments business. Both will report to Baker, who will serve as executive chairman at Saks Global.

Neiman Marcus Group CEO Geoffroy van Raemdonck called the partnership a “proactive choice in an evolving retail landscape.”

The deal comes amid what’s been a turbulent period for traditional brick-and-mortar retail in the wake of the ecommerce boom. That strain was exacerbated by post-pandemic demand for experiences, which pushed consumers to shell out for restaurants or travel instead of goods they stocked up on during lockdown.

The department store segment in particular has struggled to attract younger shoppers amid a broader pullback in discretionary spending.