Saks Fifth Avenue is undergoing a transition that will take it to the next level, and that means the storied retailer is aiming for an omnichannel approach to a consumer who is less able to afford high-end goods. This transition is good for the retailer because it’s good for the shopper.
Saks CEO Stephen Sadove calls the initiative “Project Evolution” and it includes a new customer loyalty program with a lower entry threshold, a seamless online experience and the second season of the “Fashion Star” TV show. Expanding the invitation and removing barriers to entry, means that Saks has more options.
What could be considered by some a more staid, older brand is also looking at a younger demographic by partnering with emerging labels and designers.
The retailer is also no longer reporting sales in physicals and e-commerce sales separately. “There’s so much integration between store and online sales that we can’t report the numbers separately, they just don’t make sense because we are moving inventory from one to another all the time,” says Sadove.
Like many other retailers, Saks’ core customer is changing. While a strong stock market typically augurs well for Saks, “it was a difficult luxury environment, toward the end of last year. For example, we saw a decrease in sales of jewelry priced $75,000 and higher. I think the underlying GDP will be healthy, but I do believe there will be a period of adjustment for high-end consumers. We know they will adjust just fine, but they are in the epicenter of tax changes and we can some uncertainty.”
As the Saks shopper evolves, along with the ways in Saks reports, the opportunities to identify benefits unfolds in infinite ways.
Read the full story at Media Post.
