British-Portuguese online fashion retailer Farfetch has closed a $200m common equity minority investment in US-based integrated luxury retailer Neiman Marcus Group (NMG).
The investment comes after Farfetch entered a strategic partnership with NMG earlier this year.
NMG will use the investment to expedite its growth plans and innovation by boosting its technology and digital capabilities.
In addition to the minority investment, Farfetch and NMG have held talks for a commercial agreement, under which Farfetch Platform Solutions (FPS) will re-platform the website and mobile application of NMG’s subsidiary Bergdorf Goodman.
Bergdorf Goodman will then launch its digital customer experience and curated offering to customers worldwide.
NMG’s namesake brand, Neiman Marcus, will also adopt certain FPS modules, including foundational international services.
Both businesses will join the Farfetch Marketplace as a partner, which will add participating brands in key locations worldwide.
Neiman Marcus and Bergdorf Goodman offer exclusive products across multiple channels, employing more than 3,000 associates.
NMG CEO Geoffroy van Raemdonck said: “We are pleased to share the successful closing of the investment by Farfetch in NMG and now that the commercial agreements are final, we are excited to transition to realising the important benefits of this partnership.
“Farfetch’s investment demonstrates its confidence in our omnichannel strategy, and we look forward to partnering with them to continue revolutionising the luxury customer experience and delivering value to all our stakeholders.”
Farfetch distributes items from more than 1,400 brands, boutiques and department stores to customers in more than 190 countries and territories.
In January this year, the company revealed plans to purchase US-based luxury beauty retailer Violet Grey for an undisclosed sum.
Last month, Farfetch reported that its revenue for the first quarter of the fiscal year 2022 (FY22) increased by 6.1% year-over-year to $514.8m, driven by a 9.3% growth in its digital platform revenue.