Corporate Headquarters Saks Incorporated Location: 12 East 49th St. New York, NY 10017 NAICS Codes include: -NAICS 452111- Department Stores -NAICS 453998- Store Retailers -NAICS 454113- Mail-Order Houses Publicly Owned Company
History of Saks Inc Saks Inc., formerly Proffitts, Inc., is one of the largest operators of department stores in the United States. Horace Saks and Bernard Gimbel opened the first Saks Fifth Avenue in 1924 in Manhattan, New York. In the past, Beside from its namesake Saks Fifth Avenue stores, the company also use to run the Proffitts chain, with close to 30 stores; the 50-store Younkers chain; Carson Pirie Scott, with more than 30 stores; the 40-store Herbergers chain; 40 specialty department stores called Parisian; the smaller chains Boston Store and Bergners. The company also has a mail-order and e-business division. This handles two catalogs, Folio and Bullock & Jones, and sells over the Internet at www.saks.com. As Proffitts, Inc., the company grew from a small chain of Tennessee retailers into a complex of department store chains with markets across much of the Southeast and Midwest.
History of Saks Inc The company acquired Saks Holdings in 1998, and changed its name that year. By 2005, Saks Incorporated began to seek a narrower focus towards the luxury-oriented retail synonymous with its Saks Fifth Avenue stores. The decision resulted in a July 2005 sale of its combined 47 Proffitt’s andMcRae’s stores to Belk for approximately $622 million. On October 31 that same year, Saks announced that it was selling the 142 stores within its Northern Department Store Group, including Carson Pirie Scott, Bergners, Younkers, Herbergers, and Boston Store to Bon-Ton Stores, Inc., for $1.1 billion. On August 2, 2006, Saks Incorporated announced that it had agreed to sell its upscale 38 Parisian stores, along with two regional distribution centers and Birmingham corporate headquarters to Belk, which rebranded them under their own name in the third quarter of 2007. Saks Inc distribution channel includes full price retail
Stephen Sadove-Chairman and Chief Executive Officer-He formerly was Senior Vice President ofBristol-Myers Squibb Company and then joined themanagement team of Saks Incorporated as ViceChairman.-In May 2007, Sadove was named to his currentpost of Chairman and Chief Executive Officer.-Prior to joining the Company, Sadove built adistinguished marketing and consumer productscareer spanning over 25 years.-Between 1975 and 1991, Sadove held variouspositions of increasing responsibility with GeneralFoods USA, including Executive Vice President andGeneral Manager of the Desserts Division.- He has been recognized several times as one ofthe top three CEOs for Best Investor Relations inboth retailing and department stores.
Products Saks offers the luxury designer collections for men and women, as well as accessories, cosmetics and gifts, all supported by highly personalized customer relationships. Saks expanded it’s product selection by now offering childrens clothing as well as house wares. With modern energy and great fashion authority, Saks Inc stores pays tribute to — and continues to enhance — a rich legacy of exceptional style and service. Their brands include: Alexander McQueen, Badgley Mischka, Chanel, Christian Louboutin, Dior, Ella Moss, Jason Wu, Missoni, Oscar de la Renta, Rebecca Minkoff, Stella McCartney, Vale ntino, YSL, and many more.
Saks Fifth Avenue -46 stores in United States -5 stores outside US, including two in Mexico, one in Dubai, one in Saudi Arabia, one in Bahrain -Founded in 1898 by Andrew Saks -NAICS Code: 452111
Off 5th -61 stores across the country total -Premier source of luxurious designer clothing and accessories at a discount price -First store opened in 1990 in Franklin Mills, PA -NAICS Code: 453998 Store
Saks Direct -First launched in 2000 -Offer many online exclusives that are not available in stores -Have daily promotions (free shipping, certain percentage off, BOGO, etc.) -Recently introduced “FashionFix” -NAICS Code: 454113 Mail-Order
Annual Report -Since 2002, Saks Incorporated stock prices have risen to an average of $15-$20 per share until in 2009 when the recession hit, Sak’s stock prices fell to below $5 a share -Since the economic crash in 2009, Saks Inc. stock prices have continued to rise leveling out at around $10 per share for the last fiscal year. -Sak’s sales have continued to increase since 2009 and are projected to steadily increase over the next three years. -Saks Inc operating profit
Other Information-Saks Inc. is one of the countrys premier retailenterprises, operating 354 stores in 39 states, withover $6.5 billion in annual revenues and 55,000associates .-During a devoted shopping weekend in October, SaksFifth Avenue and Saks Fifth Avenue OFF 5TH storesnationwide and saks.com donate a percentage ofsales to women’s cancer research and treatmentorganizations throughout the country.-Notable launches at Saks Fifth Avenue includedEstée Lauder’s cosmetics line in the 1940s, America’sfirst Dior Boutique in the 1970s and Donna Karan’sdebut collection in the 1980s.-In 2008, Saks Inc decided to reopen several oftheir stores using the new “luxury-in-a-loft” format.This new store design introduced an elevatedstandard for the luxury industry, offering abrighter, more inviting customer shopping experience
Globalization & Its Partner On September 18th, 2006, retailer Saks Incorporated sent out a press release to the Wall Street Journal announcing Saks Fifth Avenue’s planned expansion into Mexico. The store would be located in Santa Fe Shopping Center in Mexico City. Saks Inc entered into a license agreement with “Operadora de Tiendas Internacionales .” They are a completely owned associate of “Grupo Sanborns. Grupo Sanborns is a top retailer in Mexico best known for its chain of 150 Sanborns department stores. Grupo Sanborns also operates more than 75 Mix-up music stores and nearly 55 Sears Roebuck de México locations, as well as cafes and coffee shops Grupo Sanborns will completely own and control the functions of the stores under the license agreement with Saks Fifth Avenue Saks Incorporated already operates prosperous licensed stores in Riyadh, Saudi Arabia and Dubai, U.A.E. The Saks Fifth Avenue store opened in mid September 2007 in the Santa Fe Shopping Center, which is an upscale development in Mexico City that is the third largest and most integrated shopping centers in Latin America. Besides for being the third largest shopping center, Sante Fe Shopping Center was the selected location for the new Saks Fifth Avenue store also because of the already high end luxurious stores it resides Grupo Sanborns wanted to bring an exclusive, top-notch selection of luxury brands and experiences to Mexico City and to meeting the fashion lifestyle needs of this increasing and significant marketplace Stephen Sadove once mentioned about opening another store in Mexico and significantly Saks Fifth Avenue store in Mexico was beyond successful Therefore, on October 21st, 2010, Saks Incorporated announced it has expanded its presence in Mexico City by opening its second licensed Saks Fifth Avenue store in Plaza Carso of Mexico City.
Saks Inc Competitors-Saks’ prime competitors include Neiman Marcus Inc(privately held), NordstromInc, Bloomingdale’s, and Barney’s (privately held), all of which offer comparablemerchandise and cater to a customer demographic that earns roughly $175,000 to$200,000 a year.-Saks Inc greatly differentiates from their competitors.-They are so well known for their designer brands they carry as well as their luxuriousstore image that it makes them a strong company and consumers like that they are bothinvolved in couture and commercial fashion.-Saks Inc competes primarily on the basis of fashion, quality and service, which depends ontheir ability to anticipate and respond to changing consumer demands in a timelymanner, maintain brand recognition, price product appropriately, ensure productavailability, and effectively present their products at retail.
Success-Saks Inc. has also won various types of awardsincluding: Fashion Group International Superstar Award in 2011 2011 Teradata EPIC Award 2011 Outlet Retail Chain Award for best marketing of their outlet OFF 5th 2011 Gold RACIE Award Recognized as the “Top Innovator” in Apparel magazine’s May 2011 issue-Saks Inc. has also been recognized multiple oftimes for their main store, Saks Fifth Avenue.-Saks Fifth Avenue was awarded by the Women’sJewelry Association for the Award of Excellence forhaving the best jewelry selection.-They were also recognized for being one of the top100 retailers of the year 2011.-Due to Saks Fifth Avenue’s success in stores
Company Outlook To conclude, Saks Incorporated will continue to be successful just as they are now. As previously stated, Saks Inc income statement and stocks show that their sales will continue increase without any type of downfalls due to the poor economy. On April 5th, 2012, Saks Inc. sent a press release out to The Wall Street Journal that their sales totaled $276.5 million for the five weeks ended March 31, 2012 compared to $260.2 million for the five weeks ended April 2, 2011, a 6.3% increase. These statistical facts here prove how successful Saks Inc. is becoming year by year. Ever since the weakening economic environment in early 2009, Saks Incorporated came up various economical ideas in order to bypass the poor market. Some ideas included creating new ways for distribution to reduce costs, revising exclusions on coupons and sales promotions, including more Friends and Family sales events throughout the year rather than just the fall and spring season, and many more. They continually set a high standard for fashion they are highly recognizable in the fashion industry, and have created numerous ways in order to reduce distribution costs. Men and women all over the world love Saks Inc stores and all that they have to offer and are willing to pay the high prices for their high quality products.