Saks Fifth Avenue

Summary

Saks Fifth Avenue is a luxury department store chain headquartered in New York City, renowned for its high-end fashion, exclusive collaborations, and unparalleled customer service. Founded in 1924, it operates as part of Saks, a subsidiary of Hudson’s Bay Company (HBC). The retailer caters to affluent clientele with its extensive range of designer apparel, accessories, beauty products, and home goods. With flagship stores located in prominent cities such as New York and Beverly Hills, Saks Fifth Avenue is an iconic name in the global luxury retail sector.

History

Saks Fifth Avenue was established in 1924 by Horace Saks and Bernard Gimbel, two entrepreneurs with a shared vision of creating a sophisticated retail destination. Their flagship store opened at 611 Fifth Avenue in Manhattan, strategically located to attract New York’s affluent residents and visitors. Designed to deliver both luxury and innovation, the department store quickly gained a reputation for its exceptional merchandise and service.

By the 1930s, Saks Fifth Avenue had expanded its footprint beyond New York, with new stores opening in key cities such as Chicago and Beverly Hills. The retailer differentiated itself by offering exclusive designer collections and personal shopping services, which became a hallmark of the Saks experience.

Throughout its history, Saks Fifth Avenue has collaborated with some of the most iconic designers in the fashion industry. For instance, in the mid-20th century, it partnered with Christian Dior to showcase the “New Look” collection, which revolutionised women’s fashion. in 2023, per WWD, “Dior has transformed the 10-story facade of Saks’ New York flagship with a reimagined holiday window display and light show experience, along with installations in-store and a Dior pop-up on saks.com.” These collaborations help Saks cement its status as a trendsetter and tastemaker in the luxury market.

One of Saks’ most celebrated traditions is its annual holiday window display, launched in the 1920s. The extravagant and artistic window designs draw millions of visitors to its Manhattan flagship every year, contributing to its cultural significance in New York City. Per amNY, “This year marks the flagship store’s 100th anniversary, and the simple gold lighting around each section of the building highlighted its structural history and longstanding role as a New York City Christmas classic. A different fashion house took over each window, dressing mannequins in their own unique aesthetics, set against a winter wonderland-meets-disco backdrop.”

In 1998, Saks Fifth Avenue was acquired by Saks Incorporated, which expanded the brand’s presence across the United States. In recent years, Saks Fifth Avenue has embraced e-commerce by creating a dedicated online shopping platform, Saks.com. This digital evolution has allowed the brand to reach international customers and diversify its revenue streams, ensuring its relevance in a competitive retail environment. Saks has also implemented omnichannel strategies to integrate its physical stores with its digital platforms.

Saks Fifth Avenue partnered with the Council of Fashion Designers of America in 2022 to launch the New Wave program. The second year of The New Wave featured eight new-to-Saks brands including Claude Kameni, KEEYAHRI, Ludovic de Saint Sernin, Nalebe, SUNNI SUNNI, Undra Celeste, Who Decides War, and Zeynep Arcay. Six of these brands are Black-owned businesses. The designers were featured in a marketing campaign including digital channels and a dedicated window installation at the Saks flagship. Highlights include an onboarding bootcamp; cross-functional advisory sessions with Saks leaders; mentoring from industry experts; a roundtable discussion with James Harden, access to CFDA professional development, and  the opportunity to receive a $10,000 grant to support their business operations and growth.

HBC, parent company of Saks Fifth Avenue, entered into a definitive agreement to acquire Neiman Marcus Group, parent company of Neiman Marcus and Bergdorf Goodman, for a total enterprise value of $2.65 billion. At the close of the acquisition deal, 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.

“We’re thrilled to take this step in bringing together these iconic luxury names, Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman,” said Richard Baker, HBC Executive Chairman and CEO. “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, with technological advancements creating new opportunities to redefine the customer experience, and we look forward to unlocking significant value for our customers, brand partners and employees.”

In the most recent news, the US luxury department store  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.

Vision

Saks Fifth Avenue’s vision involves redefining luxury retail by combining exceptional customer experience with a curated selection of the world’s most coveted fashion and lifestyle brands. As a cornerstone of the luxury market, Saks strives to create an ambience where timeless sophistication meets contemporary innovation. This vision drives the department store to constantly elevate its offerings, ensuring that every interaction with customers—whether in-store or online—reflects the highest standards of quality and exclusivity.

At the heart of Saks Fifth Avenue’s vision is its commitment to fostering a sense of community and inspiration among its clientele. The department store envisions itself as more than just a retailer; it seeks to be a destination where fashion, art, and culture intersect. This commitment is evident in their efforts to host exclusive events, collaborations with iconic fashion designers, and initiatives that celebrate creativity and diversity. Saks continually strives to offer its customers a unique and memorable experience, ensuring that each visit to its stores or website feels like an invitation to explore a world of elevated style.

Looking to the future, Saks Fifth Avenue envisions expanding its influence by embracing sustainability and innovation in the luxury space. The brand is focused on promoting ethical practices within its supply chain, offering eco-conscious products, and aligning itself with the values of socially and environmentally conscious consumers. By combining tradition with forward-thinking practices, Saks aims to remain relevant in an ever-changing world while staying true to its core identity as a leader in the luxury market. Additionally, the retailer is focused on leveraging technology to elevate its shopping experience. From personalised AI-driven recommendations to augmented reality fitting rooms, Saks strives to combine the traditional luxury with the convenience of modern innovation.

Mission Statement

Saks Fifth Avenue’s mission is to inspire and empower its customers through curated collections, exceptional service, and memorable shopping experiences. The brand is dedicated to delivering a seamless blend of luxury and innovation, ensuring that every interaction reflects its values of quality and sophistication. Saks is also committed to cultivating long-term relationships with its customers. By prioritising trust, authenticity, and unparalleled service, the company aims to create a lasting impact on the lives of those it serves.

Products and Services

Saks Fifth Avenue offers a wide range of products, including designer apparel for men, women, and children, luxury accessories, premium beauty products, fine jewellery, and elegant home goods. The retailer is known for its curated collections that feature both established and emerging designers. In addition to its merchandise, Saks provides bespoke services such as personal shopping, custom tailoring, and virtual styling consultations. These offerings enhance the overall shopping experience, enabling customers to enjoy a tailored approach to luxury retail.

Awards and Recognition

Over the years, Saks Fifth Avenue has received numerous accolades for its contributions to fashion and retail. The retailer has been recognised as a leading luxury department store in publications such as Forbes, Vogue, and Women’s Wear Daily. Additionally, its flagship store on Fifth Avenue is frequently featured in lists of the world’s most iconic shopping destinations. Saks’ holiday window displays have also earned critical acclaim, solidifying its reputation as a cultural landmark in New York City.

Key Team

Marc Metrick – Chief Executive Officer
Tracy Margolies – Chief Merchandising Officer
Sebastian Gunningham – Chairman of the Board
Brandon Krieg – Chief Financial Officer
Paula Price – Independent Board Member
Sarah Dorsett – Chief Marketing Officer
David Schwartz – Chief Digital Officer

References

1. President of Saks Steps Down. The New York Times. 
2. “Saks Fifth Avenue Opens Its 40th Store in Sarasota, FL”. Saks POV. 
3. “Lord & Taylor Jumps Into Discount Game”. The Wall Street Journal. 
4. “Saks Global Inks $2.7 Billion Acquisition Of Neiman Marcus In Amazon-Backed Deal”. Forbes. 
5. “Store Locations and Events”. Saks Inc. 
6. “About Us”. Saks Fifth Avenue. 
7. “Saks Global Inks $2.7 Billion Acquisition Of Neiman Marcus In Amazon-Backed Deal”. Forbes. 
8. “Saks Fifth Avenue Stores and Website Split into Separate Companies”. www.wwd.com.
9. “Nordstrom Rack vet to lead Saks Off 5th”. Retail Dive.
10. “Up to 20 Saks Off 5th stores to close”. Chain Store Age.
11. “Mauranna G. Lynn Is Engaged To Christopher Andrew Saks”. The New York Times. 
12. “Now Forty Years Old: Saks Firm to Celebrate Anniversary This Week: History in the Making: House Has Kept Pace with Washington’s Growth: From Johnson’s Time to Now: Souvenir Booklet Distribution the Feature of Quiet and Dignified Birthday Celebrations”. Washington Evening Star.
13. “Saks & Company Open New Store To Public To-day”. New York Herald Tribune. 
14. “Eileen Denari Ludwig — S.F. civic leader”. San Francisco Chronicle. 
15. “Saks Appeal (box “Saks in Texas”)”. Fort Worth Star-Telegram. 
16.  “Saks Quits Galleria”. South Florida Sun Sentinel
17.  “THIRTY AND THRIVING Naples’ go-to shopping center celebrates 30 years, with new legacy retailers and renovated storefronts”. Gulfshore Life. 
18.  “Store adapts to need”. News-Press (Fort Myers, Florida).
19. “Rivals say Saks will be good for business”. The Orlando Sentinel. 
20. “With Gilt, Hudson’s Bay Company Bets Big on Off-Price”. The Business of Fashion.