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Tuesday, July 30, 2013

History of Saks Fifth Avenue--now being sold to Hudson's Bay

Saks Fifth Avenue-- a legendary store that also incorporates a salon and spa and a men's store as well as its famous high end shopping for women-- has been around for a while in New York and I thought it only fitting to delve a little into its history...

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Saks Fifth Avenue
Type Subsidiary
Industry Retail
Founded 1898
Founder(s) Andrew Saks
Headquarters New York City, New York, U.S.
Number of locations Saks Fifth Avenue: 43
OFF 5TH: 65
(February 2013)[1]
Products Clothing, footwear, designer handbags, bedding, furniture, jewelry, beauty products, and housewares
Owner(s) Saks, Inc.
Parent Hudson's Bay Company
Subsidiaries Saks Fifth Avenue OFF 5TH
Website saksfifthavenue.com
Saks Fifth Avenue is an upscale department store chain owned by American multinational corporation Saks, Inc., which operates the flagship store and corporate headquarters in Midtown Manhattan, New York City.[2][3] It competes with high-end specialty stores in the Upper East Side of Manhattan, notably Bergdorf Goodman, Barneys New York, and Bloomingdale's; it also competes with luxury retailers Neiman Marcus and Lord & Taylor.

History

The 1996-2007 Logo
Saks Fifth Avenue is the successor of a business founded by Andrew Saks in 1867 and incorporated in New York in 1902 as Saks & Company. Andrew died in 1912 and in 1923, Saks & Co. merged with Gimbel Brothers, Inc., operating as a separate autonomous subsidiary. On September 15, 1924, Horace Saks and Bernard Gimbel opened Saks Fifth Avenue in New York City.

When Bernard's brother, Adam Gimbel, became President of Saks Fifth Avenue in 1926 after Bernard's sudden passing, the company took on national aspirations, opening its very first branch store that year in the city of Palm Beach, Florida, as a seasonal resort store, followed by a second resort store in Southampton, New York, in 1928. The first full-line year-round Saks store was opened in Chicago, in 1929, followed by another resort store in Miami Beach, Florida. In 1938, Saks expanded to the West Coast, opening in Beverly Hills, California, California. By the end of the 1930s, Saks Fifth Avenue had a total of 10 stores, including resort locations such as Sun Valley, Mount Stowe, and Newport. More full-line stores followed with Detroit, Michigan, in 1940 and Pittsburgh, Pennsylvania, in 1949. In Downtown Pittsburgh, the company moved to its own freestanding location approximately one block from its former home on the fourth floor in the downtown Gimbel's flagship. The San Francisco location opened in 1952. More expansion followed from the 1960s through the 1990s including the Midwest, and the South, particularly in Texas.

BATUS Inc. acquired Gimbel Bros., Inc. and its Saks Fifth Avenue subsidiary in 1973 as part of its diversification strategy. In 1990, BATUS sold Saks to Investcorp S.A., which after investing in the company and weathering the early 1990s recession took Saks public in 1996 as Saks Holdings, Inc. In 1998, Saks Holdings Inc. was acquired by Proffitt's, Inc., then the parent company of Proffitt's among other department stores. Upon closing of the acquisition, Proffitt's, Inc. changed its name to Saks Incorporated.

In 2005, vendors filed against Saks alleging unlawful chargebacks. The SEC formally investigated the complaint and Saks settled with the SEC in 2007.[4]

In August 2007, the United States Postal Service began an experimental program selling the plus zip code extension to businesses. The first company to do this was Saks Fifth Avenue which received the zip code of 10022-SHOE for the eighth floor shoe department in its flagship Fifth Avenue store.[5] Today, the New York flagship store accounts for a significant amount of the entire chain's annual revenue.

Since 2000, Saks has closed a number of locations, including White Plains, Garden City, and Southampton in New York, as well as other suburban, and "downtown" locations around the country. The focus has been to have a smaller number of stores in each key market, and thus make those stores destinations within their respective markets. Los Angeles, San Francisco, and Chicago each only have one Saks Fifth Avenue Store in each respective metropolitan area. Saks closed its 60 year-old downtown Pittsburgh location on March 17, 2012.[6] Additionally, the Company closed its Westshore Center location in Tampa, Florida, operated since 1996, in April 2013 and the Dallas location in June 2013 to implement the "strategy of employing our resources in our most productive locations".[7]
On July 29, 2013, the Hudson's Bay Company (owners of the competing chain Lord & Taylor) announced it would acquire Saks Fifth Avenue's parent company for $2.9 billion.[8]

International

The chain's strategy for international expansion focuses on underserved luxury markets. Its first international location, operated under license by SFAE, opened in Riyadh, Saudi Arabia, courting the wealth of the oil-rich Middle East. Other locations now include the United Arab Emirates, Bahrain, and two stores in Mexico City. In January 2009, the company opened a second location in Saudi Arabia, in the city of Jeddah.[9] and coming soon opening in Puerto Rico in Plaza Internacional. The opening of this store and grand mall is estimated in late 2012.[dated info]
North America Asia
Atlanta, Georgia
Bal Harbour, Florida
Beverly Hills, California
Birmingham, Alabama
Boca Raton, Florida
Boston, Massachusetts
Chicago, Illinois
Cincinnati, Ohio
Cleveland, Ohio
Columbus, Ohio
Costa Mesa, California
Fort Myers, Florida
Greenwich, Connecticut
Hackensack, New Jersey
Houston, Texas
Huntington Station, New York
Indianapolis, Indiana
Las Vegas, Nevada
McLean, Virginia
Miami, Florida
Minneapolis, Minnesota
Naples, Florida
Nashville, Tennessee
New Orleans, Louisiana
New York City, New York
Orlando, Florida
Palm Beach, Florida
Palm Beach Gardens, Florida
Palm Desert, California
Philadelphia, Pennsylvania
Phoenix, Arizona
Raleigh, North Carolina
Richmond, Virginia
San Antonio, Texas
San Francisco, California
Santa Barbara, California
Sarasota, Florida
Short Hills, New Jersey
St. Louis, Missouri
Stamford, Connecticut
Syracuse, New York
Troy, Michigan
Tulsa, Oklahoma
Washington, D.C.
Almaty
Mexico City, Polanco[10]
Mexico City, Santa Fe[10]
Future Locations
Riyadh
Manama
Dubai

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