The parent of Saks Fifth Avenue, in a partnership with Amazon, will buy rival department store chain Neiman Marcus in a $2.65 billion deal.

Richard Baker, CEO and chairman of HBC, told The New York Times said the company was “not planning on closing any stores or digital businesses or reducing services in any way,” even though the chains operate in many of the same markets.

Stores will continue under respective brands

In a press release provided to USA TODAY, HBC said upon close of the transaction, “HBC will establish Saks Global, a combination of world-class luxury retail and real estate assets, including Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus and Bergdorf Goodman, each of which will continue operations under their respective brands.”

Part of the appeal for the deal was the in-person touch, Baker told the New York Times. “Customers love to go to a store,” he said. “They love to touch a product and spend time with their personal shoppers.”

Also attractive was Neiman Marcus’ sales force. “People have forgotten how important people are. When selling luxury products, you need beautiful stores and salespeople customers trust,” he said.

The deal was first reported by the Wall Street Journal.

Both chains have been negotiating for months and have explored the deal several times in recent years, the paper said. The combination will likely face regulatory scrutiny as the Federal Trade Commission takes a harder look at consolidation in fashion retail.

People familiar with the transaction said the combined company would have about $10 billion in annual sales.

Will Neiman Marcus giftcards still be good?

It is unclear if Neiman Marcus giftcards will still be useable after the transaction is complete. USA TODAY sent a message to HBC asking about giftcards.

Shelley Hunter, a consumer gift card industry expert, told USA TODAY that consumers might want to use their gift cards now.

“The fate of existing gift cards can vary in retail acquisitions, but it’s not typical for new store owners to honor the old store’s gift cards,” said Hunter, who operates www.giftcardsyoucantrust.com.

“Customers who wait for liquidation sales, thinking they’ll get more value, often find that the merchandise is picked over or the gift cards are no longer honored,” she said. “It’s always smart to use gift cards as soon as possible, but it’s even more critical in situations like this.”

Amazon to take minority stake, provide technology expertise

Amazon will take a minority stake in the new company and will provide technology and logistical expertise, the Wall Street Journal said. Another minority shareholder is Salesforce, the paper said.

HBC, a holding company which owns Sak’s and Hudson’s Bay, is financing the deal with $2 billion it raised from existing investors, the Wall Street Journal said

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The paper also reported that Marc Metrick, the chief executive of Sak’s e-commerce business, will run the combined companies.

Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@USATODAY.com or follow her on X, Facebook or Instagram @blinfisher. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays,here.