Here is story from the Wall Street Journal..it says it is about land as much as anything else ( real estate values being what they are on Fifth Avenue)
Hudson's Bay to Buy Saks for $2.4 Billion
Deal Is Likely to Be as Much About Real Estate as Fashion
Hudson's Bay agreed to pay $16 in cash per Saks SKS +0.28% share—a 4.5% premium to the retailer's $15.31 Friday closing price.
The acquisition of Saks caps a seven-year run of deal-making for Hudson's Bay Chief Executive Richard Baker, a longtime real-estate investor. He plunged into the apparel business in the middle of the last decade with the acquisition of Lord & Taylor and a chain of department stores in Canada.
The deal not only adds a high-end luxury chain to his collection of brands but also gives him a lot of real-estate options, including a trophy property on Manhattan's Fifth Avenue.
As of the end of its last quarter, Saks operated 42 Saks Fifth Avenue stores and 66 outlet stores. Deborah Weinswig, a Citigroup Inc. analyst, valued the fleet of stores at $1.5 billion, including $805 million for the flagship New York location.
Saks, for instance, still has a number of stores in unprofitable locations. By swapping Saks Fifth Avenue stores in lower-end malls for the more moderately priced Lord & Taylor, Mr. Baker could alleviate Saks's real-estate problems at little cost, a person familiar with his plans said.
Mr. Baker also could expand the Saks chain to Canada without signing expensive new leases by putting it into Hudson's Bay real estate, this person added.
Saks's shares have climbed nearly 46% so far this year, largely on speculation that it could be bought. That increase has given it a market capitalization of more than $2.2 billion.
Sales at Saks have yet to fully recover from the deep swoon they took during the recession, and profits have been uneven. Saks posted net income of $63 million in the year that ended Feb. 2 on $3.15 billion in sales. Its sales increased from a year earlier but its earnings declined.
Hudson's Bay was advised by Bank of America Merrill Lynch, with financial advice by RBC Capital Markets. Goldman Sachs, Morgan Stanley and Guggenheim Securities advised Saks.
—Suzanne Kapner contributed to this article. Write to Sharon Terlep at firstname.lastname@example.org and Serena Ng at email@example.com
Let's see what the reviews of Saks have been like from Yelp or some other source....Well, it seems like there is always a sour apple or two for every place, no matter how high its general reputation is..
Saks Fifth Avenue
226 reviews Rating Details
- Nearest Transit Station:
- 5 Av/53 St (E, M)47 - 50 Sts - Rockefeller Ctr (B, D, F, M)51 St (4, 6, 6X)
- Mon-Sat 10 am - 8 pmSun 12 pm - 7 pm
- Price Range:
- Accepts Credit Cards:
- Wheelchair Accessible:
226 reviews for Saks Fifth Avenue
Review Highlights What's this?
226 reviews in English
Review from Jonathan S.I have mixed feelings about Saks Fifth Avenue. I am a platinum SaksFirst cardholder. Most sales associates, only when they find out do they start giving me their full attention. I understand earning commission is important, but it's a little frustrating sometimes for me as a loyal customer.
I am only giving 5 stars because of two amazing sales associates: Lawrence from Burberry Men's and Jennifer from Burberry Women's. They've been serving myself, my mom, and my aunt since the very beginning when we first started shopping at Saks. Now we always go to them for everything because they deserve our business. They should both be promoted because of their top-notch customer service.
Review from Arlene M.Once upon a time my city had a Saks. I loved to go there when I was on my lunch hour. Regrettably they closed and sent their merchandise to a competitor.
I visited thisparticular store one time to make a fragrance purchase. I explained that Saks only carried this particular scent and the man was urging me to buy other scents that I knew were back home. I literally had to call that store to prove he was wrong! I made my one purchase and left.
Since they do have unique items at holiday time I will visit them online but I doubt I will ever visit them again.
Review from Rowena Y.This review is for their Bridal salon.
One day during my lunch break, I happened to pass by Saks and the window display was full of gorgeous, couture looking wedding gowns. I am not a celebrity or a fashion model of any kind so couture wedding dresses never crossed my mind. But there was one that I was truly fascinated and obsessed with. It was a dress by Monique Llhullier, mermaid style with cap-sleeves. It's not a typical ball-gown with layers and layers of tulle and organza. It was rather simple but elegant with intricate beading and design. The silhouette looked amazing (at least on the mannequin).
So I kept gawking at the mannequin and I'm sure if there was a store camera outside, I probably looked like a potential thief and ready to break through the glass. What's that phrase..instead of something borrowed, it's something stolen? Ha! Anyhow, my heart went with it and decided to book an appointment with the Saks Bridal salon located on the 5th floor. I told them I just wanted to try that dress on but for whatever reason, the consultant said the dress will be on display for the remainder of the following week so I only have a limited number of days that I can try it on before it gets stored away. I figure at most, it would probably take me 20 minutes to try it on so I booked whatever was available.
On appointment day, I dragged my mom with me. In my mind, I wasn't sure if this was "the dress" but in case it was, I wanted to get at least my mom's approval. So I met with a consultant and she brought out the dress I wanted to try on. When they say don't judge a book by its cover, it's so darn true. So it turned out that the ML dress looked really weird on me. Let's just say I just don't quite have the body type and height of a mannequin. The consultant knew it wasn't me so she graciously brought out eight other dresses for me to try on. I have to say I definitely love 2 of the 8 dresses she brought out. One was all alencon lace (forget the designer) and the other one was mermaid organza by Vera Wang. I originally preferred gowns with lace but did not expect the Vera Wang one to really pull it off. I was completely overwhelmed with how beautiful the gowns were. At the same time, the consultant was also very helpful and wasn't pushy either. She made me and mom feel really relax and had lots of fun. But to be honest, the dresses were still out of my budget range. I figure if I can't find "the dress" anywhere else, I would be willing to spill the extra buck on either the alencon dress or the Vera Wang. On the plus side, depending on the designer gown that participates in the program, you can open a new Saks account and receive a $400 gift card and a 10% discount on bridesmaid dresses, suits, and mother-of-the-bride dresses. The gift card is a nice perk. I would definitely use it for a veil or some nice bridal shoes. But we shall see. Overall, the service is great. Even though it's a high end place, they don't act snobbish and are genuinely honest with you. They treat each customer privately so there's no interference with other customers. I have to say it was a lot better experience than at Kleinfield.
Review from Katrina W.I mean it's Saks. The Saks Fifth Avenue. The Flagship store! What can you say? The service is ALWAYS impecable. They bend over backwards to accomodate any and everything. They are MUCH better than Neiman Marcus and Norstrom customer service. Saks is my go to. Especially the 8th floor! 10022 - shoe! Literally HEAVEN ON EARTH.
Review from Max R.So I dropped in here to look around. With NYC - the service is bar none. Next thing I know I'm in the Louis Vuitton store. A certain 'someone' in my life always wanted one of their bags. So I bought one. Lucky for me ... I could use the ten Benjamins I spent on Mother's Day now that I'm living in the city.Listed in: The Yelp 100 Challenge
Review from John A.The sales we're almost overwhelming for my wife (and my card) and the amount of clothing on offer was amazing. The huge letdown was the sales offered on the men's collections, which was approximately 10-20% of the woman's. the service throughout the store was very good and we really enjoyed the layout of the small boutiques.
Review from LightChick M.I've always loved Saks so am completely biased.
Some of their outlet stores are amazing too, especially the one in Petaluma.
They have everything from hip clothes to couture and everything in between. When shopping here, I know I am walking out with both quality and fashion.
The hidden lingerie department tucked away at the top is well worth the effort finding. And believe me, I do not venture far out of my way for ordinary stuff, so for me to take train, plane and automobile to get upstairs, you know it's worth it.
Valerie up there is excellent beyond compare. This is now my absolute go to place for lingerie shopping. And, they have an excellent sexy bra selection for those of us who are well endowed. Usually, the only other place is in LA where the Playmates shop, but the quality of the Saks under garments are much better.
A fun fact - up in lingerie, they have an extensive silk caftan selection and it was almost like being in a costume museum looking at the detailing and prints. Think Elizabeth Taylor in those old photos with her diamonds dripping and a caftan flowing in the wind on a patio overlooking the Mediterranean. Fun!
Review from K F.On a recent business trip to NYC, I stopped into Saks to buy my first new suit in about ten years. I knew little of what would be the right fit/style, etc. I was greeted by David who helped me find the perfect suit. Along the way, he never pressured and never seemed impatient. In the end, I picked up a beautiful suit, and found it delivered just one day after returning to CA.
I will stop in again on my next trip to NYC. Hopefully David will be working.