The purpose of this project was to select a US textile and apparel company and understand its globalization.

1. Marissa Pawlak
FDM 442
May 4th, 2012

2. Corporate
Headquarters

3. 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

4. History of Saks Inc
 Saks Inc., formerly Proffitt's, 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 Proffitt's
chain, with close to 30 stores; the 50-store Younkers chain;
Carson Pirie Scott, with more than 30 stores; the 40-store
Herberger's chain; 40 specialty department stores called
Parisian; the smaller chains Boston Store and Bergner's.
 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 Proffitt's, 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.

5. 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, Bergner's, Younkers, Herberger's, 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

6. Stephen Sadove
-Chairman and Chief Executive Officer
-He formerly was Senior Vice President of
Bristol-Myers Squibb Company and then joined the
management team of Saks Incorporated as Vice
Chairman.
-In May 2007, Sadove was named to his current
post of Chairman and Chief Executive Officer.
-Prior to joining the Company, Sadove built a
distinguished marketing and consumer products
career spanning over 25 years.
-Between 1975 and 1991, Sadove held various
positions of increasing responsibility with General
Foods USA, including Executive Vice President and
General Manager of the Desserts Division.
- He has been recognized several times as one of
the top three CEOs for Best Investor Relations in
both retailing and department stores.

7. 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 children's
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.

8. 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

9. 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

10. 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

11. Store Atmosphere

12. 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

13. Other Information
-Saks Inc. is one of the country's premier retail
enterprises, operating 354 stores in 39 states, with
over $6.5 billion in annual revenues and 55,000
associates .
-During a devoted shopping weekend in October, Saks
Fifth Avenue and Saks Fifth Avenue OFF 5TH stores
nationwide and saks.com donate a percentage of
sales to women’s cancer research and treatment
organizations throughout the country.
-Notable launches at Saks Fifth Avenue included
Estée Lauder’s cosmetics line in the 1940s, America’s
first Dior Boutique in the 1970s and Donna Karan’s
debut collection in the 1980s.
-In 2008, Saks Inc decided to reopen several of
their stores using the new “luxury-in-a-loft” format.
This new store design introduced an elevated
standard for the luxury industry, offering a
brighter, more inviting customer shopping experience

14. 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.

15. Mexico City Stores

16. Saks Inc Competitors
-Saks’ prime competitors include Neiman Marcus Inc(privately held), Nordstrom
Inc, Bloomingdale’s, and Barney’s (privately held), all of which offer comparable
merchandise 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 luxurious
store image that it makes them a strong company and consumers like that they are both
involved in couture and commercial fashion.
-Saks Inc competes primarily on the basis of fashion, quality and service, which depends on
their ability to anticipate and respond to changing consumer demands in a timely
manner, maintain brand recognition, price product appropriately, ensure product
availability, and effectively present their products at retail.

17. Promotions

18. Success
-Saks Inc. has also won various types of awards
including:
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 of
times for their main store, Saks Fifth Avenue.
-Saks Fifth Avenue was awarded by the Women’s
Jewelry Association for the Award of Excellence for
having the best jewelry selection.
-They were also recognized for being one of the top
100 retailers of the year 2011.
-Due to Saks Fifth Avenue’s success in stores

19. 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.

20. References
 http://www.4-traders.com/SAKS-
INC-14406/financials/
 http://finance.yahoo.com/q/co?s=SK
S+Competitors
 http://www.fundinguniverse.com/com
pany-histories/Saks-Inc-company-
History.html
 https://www.saksincorporated.com/