Verified Document

History Of Saks Fifth Avenue And Marketing Essay

¶ … 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,...

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 sales," (Loeb, 2013).…

Sources used in this document:
References

Bryant, Kenzie, 2014. "Saks' New Strategy: Make the Saks Off 5th Outlet 'A Mess.'" Racked. Retrieved online: http://www.racked.com/2014/1/31/7621235/saks-new-strategy-make-the-saks-off-fifth-outlet-a-mess

Klara, Robert, 2014. "Saks Fifth Avenue CMO Mark Bridges Explains Sweeping Changes." AdWeek. 4 Sept, 2014. Retrieved online: http://www.adweek.com/news/advertising-branding/saks-fifth-avenue-cmo-mark-briggs-explains-sweeping-changes-159883

Loeb, Walter, 2013. "Good News: Saks Fifth Avenue is No Longer Elitist." Forbes. 4 March, 2013. Retrieved online: http://www.forbes.com/sites/walterloeb/2013/03/04/saks-5th-avenue-no-longer-elitist/

"Saks Fifth Avenue," n.d. Business of Fashion. Retrieved online: http://www.businessoffashion.com/community/companies/saks-fifth-avenue
Cite this Document:
Copy Bibliography Citation

Related Documents

Fashion Designer Monique Lhuillier Fashion
Words: 1912 Length: 6 Document Type: Research Paper

She added jackets, some with full profiles, some, like the gold lace one Angelina Jolie was once photographed in, featured ae sleeves, and collarless short jacket. It was the kind of item someone could wear in a very formal setting or at a cocktail party, paired with a tank and jeans. One tailored wedding gown was paired with a frothy shrug. Her designs never displayed excess, and were always balanced.

Urban Outfitters Case Study Urban Outfitters Has
Words: 1592 Length: 4 Document Type: Case Study

Urban Outfitters Case Study Urban Outfitters has defined a highly differentiated and unique shopping experience, supported by the eclectic and highly varied store layouts and merchandise strategy. This approach to retailing appeals to the individuality and uniqueness every consumer also sees in themselves, allowing the consumers to define themselves by what they like. INA actuality, Urban Outfitters is more aligned to key marketing concepts and strategies than its much larger and

Dockers Is a Levi Strauss Brand That
Words: 1086 Length: 4 Document Type: Essay

Dockers is a Levi Strauss brand that was initially launched in 1986. Throughout the 1990s Dockers rode a wave of success as business casual gained acceptance in the workplace, and khakis became the pants of choice in mens casual wear. Dockers was at the forefront of the business casual movement and its brand became synonymous with khakis. Such success spurred brand expansion; in 1998 Dockers launched a line of clothing

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now