According to Wall Street Journal, Saks is about to embark on a pretty risky sales strategy. The new management is reporting that $250 million has been earmarked for upgrades to the Fifth Avenue flagship, including revamping a 30,000-square foot lower-level hair salon and storage space into another retail floor that would be stocked with (even more) expensive products—like the $48,000 Louis Vuitton crocodile handbags they recently received.
Meanwhile, parent company Hudson's Bay Co. is going to make the Saks Off Fifth outlet stores "look a little more unkempt." Wait, what?
Apparently, they're following the tactic of other department-store based discount chains. "Our outlet stores look too much like department stores," according to Baker. "Nordstrom Rack is a mess, and customers love it."
While Saks Off Fifth has yet to establish a location in the five boroughs, its competitors have been stepping up their NYC game—Nordstrom Rack has two planned locations in Brooklyn's Fulton Mall and Flushing's Shops at Skyview Center, in addition to their Union Square spot, and Neiman Marcus Last Call is headed to Downtown Brooklyn.
However, we may not have to wait long. In addition to the messification of existing Off Fifth stores, Baker plans to at least double the number of off-price locations around the United States (there's currently 71).
It sounds like a mess already. I don't like to shopping in a messy environments. How about you guys?
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