History of Saks Fifth Avenue and Marketing Essay

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business founded in 1867 by Andrew Saks became Saks Fifth Avenue, one of the world's top luxury department stores, in 1924. Since then, the Saks brand has been associated with top quality fashion and design. It is now owned by Canadian firm Hudson Bay Company, which acquired Saks for the tune of $2.4 billion. While the decision to purchase the Saks department store and also that of competitor Lord & Taylor might have seemed "plucky" to some, the decision reflects current consumer shopping trends in that department stores can be valuable anchors for the brand (Klara, 2014). Online shopping through branded digital stores supplements but does not take the place of traditional browsing in brick-and-mortar establishments.

The world of fashion and merchandising has dramatically changed since Saks Fifth Avenue first set up shop in New York City. Emerging markets throughout the world are paying attention to the luxury sector, and Saks has done its best to make inroads around the world. Saks already has two stores open in Mexico City, as well as stores in wealthy Gulf nations like Bahrain, Saudi Arabia, and the United Arab Emirates ("Saks Fifth Avenue," n.d.). Its purchase by Hudson's Bay heralds a new era for the iconic department store chain. One of the ways Saks' top leaders are working to boost the brand is by differentiating itself further from its outlet store, Off Fifth. By channeling $1 billion into the flagship Saks stores and increasing the range of elite luxury goods including "$48,000 bags and $1,500 shoes," while ensuring the Off Fifth brands are correspondingly "devamped," (Bryant, 2014). This means that Saks wants to establish itself as a global luxury department store offering top elite brands, positioning itself well.

The current CMO is Mark Briggs, and he and current President Marigay McKee both hailed from Harrods, the mainstay British department store. When asked about Saks' new direction under the Hudson's Bay umbrella, Briggs claims that the classic name and "heritage" of the Saks brand will be combined with "something different and fresh," (cited by Klara, 2014).

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Displays are being renovated, lighting is being improved, and generally the presentation is going to be richer and flashier throughout Saks stores. The new Saks merchandise is set to be presented in a format like a "coffee table book" than a catalog, reflecting the direction of the store as being firmly and fully committed to the luxury sector. Saks has always been a well-curated department store, but under its new leadership, both the online and brick-and-mortar stores will be edited to reflect its new global sensibilities. One of the ways Saks is set to establish itself as a leading luxury provider is through the new personal shopping service (Klara, 2014). The personal shopping service and other service-oriented elements of Saks' new approach allow the elite consumer to minimize time spent shopping while maximizing the value of their spending.

Even while Saks appeals more to the elite luxury sector, the CMO and other leaders in the organization are working to please the more mid-range sector by offering incentives such as a SAKSFIRST loyalty card. Customers earn points and special benefits, and those benefits increase with "more substantial purchases," allowing Saks to distinguish between their more elite clientele and those in the mid-range sector (Loeb, 2013). Moreover, Saks is not only investing in improvements to its elite lines and in-store presentations. The company is also expanding Off Fifth stores and merchandise. Currently, there are more Off Fifth locations than there are Saks Fifth Avenue locations. This shows that Saks has developed a clear and cogent marketing strategy that allows the company to segregate its Off Fifth and budget-conscious consumers from its Saks Fifth Avenue clientele. Moreover, "Saks is growing nationally and internationally through strong Internet….....

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