Neiman Marcus Group scraps Farfetch partnership for e-commerce revamp

Neiman Marcus Group announced on Wednesday its decision to sever ties with Farfetch. 

Neiman Marcus Group said it will no longer proceed with plans to transition the Bergdorf Goodman website and app onto Farfetch Platform Solutions (FPS). The luxury department store chain has also opted out of joining Farfetch’s marketplace. 

The partnership between Neiman Marcus Group and Farfetch was initially forged in 2022 when the luxury e-tailer made a substantial $200 million investment in the department store chain. As part of the agreement, Bergdorf Goodman, a subsidiary of Neiman Marcus Group, was slated to enhance its own e-commerce experience by leveraging Farfetch’s software.

However, Neiman Marcus Group has now decided to pursue an independent path in developing its e-commerce technology, opting not to integrate Farfetch’s software.

The decision follows the completion of South Korean e-commerce giant Coupang’s acquisition of Farfetch’s assets, including FPS. Financially troubled Farfetch received a $500 million rescue from Coupang, last month.

Despite this shift, Farfetch is expected to maintain its status as a minority investor in Neiman Marcus Group, with the department store chain directing its original capital injection towards internal e-commerce advancements.