Saks Fifth Avenue might be under new management by the end of the year as Hudson’s Bay Co. (HBC), a Toronto-based company that also owns Lord & Taylor, put in a bid to buy the luxury retailer to tune of $2.9 billion.
While the deal has yet to be finalized, HBC chairman and chief executive officer Richard Baker already has big plans to build the retailer back up by investing into its real estate and converting a few Hudson’s Bay in Canada stores into Saks, which recently added Christian Louboutin to its shoe department. “We plan on spending a lot of money renovating Saks stores, making the Saks business more luxurious, more exciting, and as compelling as we can. You know we have history with Lord & Taylor and Hudson’s Bay of doing exactly that,” Baker told Women’s Wear Daily. “We will hit the ground running once we close the deal, which will be in three to six months.”
Canadians will rejoice, as the retailer will have it’s own native e-commerce site as it’s already the country with the brand’s largest international ship-to market. “We have a fantastic opportunity to grow Saks in Canada with full-line, Off 5th, and Internet,” Baker said. “The Internet business will have returns at Hudson’s Bay stores all across the country. In Canada, there is no luxury retailer that has an Internet site.”
This all comes in as competitor Neiman Marcus is eyeing an initial public offering and Nordstrom looks to push into Canada, HBC’s home base, WWD reports. If all goes as planned, HBC would own 2 flagships within blocks of one another in the Big Apple. We’ll have to wait and see as the deal goes through, but Fifth Avenue is in for a shakeup!