US luxury department store Saks Fifth Avenue establishes a franchise agreement in India with the country’s retail giant, Reliance Retail.
Saks Fifth Avenue New York
US luxury department store Saks Fifth Avenue has signed a franchising agreement with Reliance Industries Limited to open Saks Fifth Avenue and Saks Off 5th stores in India. This was announced in parent company Reliance Industries’ third-quarter financial report.
Per the report, “We also signed the India franchise for Saks Fifth Avenue to target the super luxury segment. In addition, the IPs that we own, right we want, we have stakes in a lot of designer brands. We are taking them global. So, for instance, Rahul Mishra and AKOK by Anamika Khanna, we are taking them to us through our partnerships with Saks, where they will be present in the iconic Saks New York store.” However, details of the Saks Fifth Avenue and Reliance Retail agreement were not disclosed.
Per WWD: ‘“We are very excited about our partnership with Reliance,” Richard Baker, Executive Chairman, Saks Global, told WWD. “Over the next 20 years there is a tremendous opportunity to grow luxury businesses and brands in India.” About establishing the Saks brand in India, “There is not a better partner than Reliance,” Baker said.’
Reliance Industries Limited shapes India’s fashion retail
Reliance Industries Limited (RIL), through its retail arm Reliance Retail Ventures Limited (RRVL), has established a strong presence in the Indian fashion and lifestyle market by bringing several renowned global fashion brands to the country. The company has forged strategic partnerships, collaborations, and franchise agreements with international labels, enabling them to expand into the burgeoning Indian retail space.
Among the most prominent luxury fashion brands are Emporio Armani, Giorgio Armani, Bottega Veneta, Canali, Balenciaga Bally, Jimmy Choo, Michael Kors, Tumi, Tiffany, Valentino, Versace, Zegna, Tory Burch, Salvatore Ferragamo and Burberry. The company also partnered with Marks and Spencer, Superdry, Hugo Boss, Diesel, Dune, Muji, hunkemoller, Ralph Lauren, Tod’s, Brooks Brothers and Kate Spade to cater to younger, fashion-conscious audiences.
By continually introducing global fashion brands, Reliance Retail plays a pivotal role in shaping India’s retail landscape, catering to the growing aspirations of the fashion-conscious Indian. Ranked amongst the fastest growing retailers in the world and 53rd in the list of Top Global Retailers, its guiding philosophy is rooted in enabling inclusion, growth and building sustainable societal value for millions of Indians. Per the official website, Reliance Retail reported a turnover of INR 306,786 crore for the financial year 2023-24.
Parent company Reliance industries Limited showed a steady quarter in its financial report. “A recap of the quarter gone by, we saw revenue at about $744 million, or about INR 6370 crores, which is a slight upside from the previous quarter of around 2.5 percent. EBITDA came in at about INR 5,565 crores, again, about more than 5% increase quarter on quarter. EBITDA margins were very healthy, it grew by almost 240 basis points to 87.4%.”
Saks Fifth Avenue remains steadfast and resilient
Saks Fifth Avenue is the leading name in luxury shopping. Since 1924, the brand has delivered one-of-a-kind shopping experiences, featuring a curated assortment of fashion and highly personalised customer service. The unique approach combines an emphasis on the digital customer experience with a strong connection to a network of 41 extraordinary stores across North America for seamless, all-channel shopping.
Few know that the luxury department store was the brainchild of Horace Saks and Bernard Gimbel, who operated independent retail stores on New York’s 34th Street at Herald Square in the early 1900s. Their dream was to construct a specialty store that would become synonymous with fashionable, gracious living. The combined finances of these families led to the purchase of a site between 49th and 50th Streets on upper Fifth Avenue, and the opening of its founders’ “dream store” on September 15, 1924.
Its reputation as a cornerstone of American retail was solidified during the mid-20th century, as it expanded its presence with stores in other major cities across the United States.
Over the years, Saks Fifth Avenue underwent several acquisitions, which played a key role in shaping its growth in a competitive retail landscape. In 1973, it was acquired by BATUS Inc., a subsidiary of British American Tobacco. Under BATUS, Saks experienced significant expansion but eventually sold to Investcorp in 1990. Another pivotal moment came in 1998, when Proffitt’s, Inc. (later renamed Saks Incorporated) acquired the retailer, merging it into a conglomerate of department stores. The most notable acquisition occurred in 2013 when Canada’s Hudson’s Bay Company purchased Saks Fifth Avenue for a reported $2.9 billion, a move that brought the retailer into a global portfolio of luxury brands.
Today, Saks Fifth Avenue continues to adapt to the evolving retail environment while preserving its legacy as a leader in luxury fashion. Under the stewardship of HBC, Saks has embraced digital transformation, launching Saks.com as a separate e-commerce entity in 2021 to enhance its online presence. Despite challenges in the retail industry, Saks remains a cultural and fashion institution, known for its iconic window displays, exclusive collections, and dedication to serving a discerning clientele. Its acquisitions have not only ensured the brand’s survival but also strengthened its ability to innovate while remaining true to its roots.
Jasmeen Dugal is Associate Editor at FashionABC, contributing her insights on fashion, technology, and sustainability. She brings with herself more than two decades of editorial experience, working for national newspapers and luxury magazines in India.
Jasmeen Dugal has worked with exchange4media as a senior writer contributing articles on the country’s advertising and marketing movements, and then with Condenast India as Net Editor where she helmed Vogue India’s official website in terms of design, layout and daily content. Besides this, she is also an entrepreneur running her own luxury portal, Explosivefashion, which highlights the latest in luxury fashion and hospitality.
