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In August 2007, the [[United States Postal Service]] began an experimental program selling the plus [[zip code]] extension to businesses. The first company to do so was Saks Fifth Avenue, which received the zip code of 10022-SHOE (7463) for the eighth-floor shoe department in its flagship [[Fifth Avenue]] store.<ref name=zip>{{cite news| title=Saks department gets own ZIP code: 10022-SHOE| url=http://usatoday30.usatoday.com/news/offbeat/2007-05-24-saks-zip-code_N.htm| date=24 May 2007| work=[[USA Today]]| agency=[[Associated Press]]| accessdate=2014-05-21}}</ref>
In August 2007, the [[United States Postal Service]] began an experimental program selling the plus [[zip code]] extension to businesses. The first company to do so was Saks Fifth Avenue, which received the zip code of 10022-SHOE (7463) for the eighth-floor shoe department in its flagship [[Fifth Avenue]] store.<ref name=zip>{{cite news| title=Saks department gets own ZIP code: 10022-SHOE| url=http://usatoday30.usatoday.com/news/offbeat/2007-05-24-saks-zip-code_N.htm| date=24 May 2007| work=[[USA Today]]| agency=[[Associated Press]]| accessdate=2014-05-21}}</ref>


During the [[Great Recession|2007-2009 recession]], Saks Fifth Avenue had to close some stores and to cut prices and profit margins, thus according to Reuters "training shoppers to expect discounts. It took three years before it could start selling at closer to full price".<ref name="wahba-ho">{{cite news| title=Hudson's Bay CEO bets big on department stores with Saks buy| url=http://www.reuters.com/article/2013/07/29/us-hudsonsbay-saks-idUSBRE96S0DV20130729| last1=Wahba| first1=Phil| last2=Ho| first2=Solarina| work=[[Reuters]]| date=29 July 2013| accessdate=2014-05-21}}</ref> Since 2010 another 10 stores have closed or are scheduled to close, including Pittsburgh (despite local efforts to save it),<ref name=gough>{{cite news| last=Gough| first=Paul J.| title=Saks Fifth Avenue Downtown to close March 17|url=http://www.bizjournals.com/pittsburgh/news/2012/01/19/saks-fifth-avenue-to-close-march-17.html| accessdate=2014-05-21| work=[[Pittsburgh Business Times]]| date=19 January 2012}}</ref> [[Denver]],<ref name=moore>{{cite news| last=Moore| first=Paula| title=Saks Fifth Avenue's Denver store to close| url=http://www.bizjournals.com/denver/news/2011/01/05/saks.html?page=all| accessdate=2014-05-21|newspaper=[[American City Business Journals|Denver Business Journal]]| date=5 January 2011}}</ref> [[Charleston, South Carolina|Charleston]], [[South Carolina]], [[Stamford, Connecticut|Stamford]], [[Connecticut]], Austin, Dallas Willow Bend and [[Orlando, Florida|Orlando]] which closed in 2014.{{Update inline|date=September 2015}} Additionally, the company closed its location in [[Tampa, Florida|Tampa]], operated since 1996, in April 2013 and its last [[Dallas]] location in June 2013 to implement the "strategy of employing our resources in our most productive locations".<ref name=dallas>{{cite news| url=http://www.retailfacilitybusiness.com/the-latest-news/629-saks-fifth-avenue-to-close-store-in-dallas-retailer-news.html| title=Saks Fifth Avenue To Close Store in Dallas| work=Retailfacilitybusiness.com| date=4 February 2013| accessdate=2014-05-21}}</ref>
During the [[Great Recession|2007-2009 recession]], Saks Fifth Avenue had to close some stores and to cut prices and profit margins, thus according to Reuters "training shoppers to expect discounts. It took three years before it could start selling at closer to full price".<ref name="wahba-ho">{{cite news| title=Hudson's Bay CEO bets big on department stores with Saks buy| url=http://www.reuters.com/article/2013/07/29/us-hudsonsbay-saks-idUSBRE96S0DV20130729| last1=Wahba| first1=Phil| last2=Ho| first2=Solarina| work=[[Reuters]]| date=29 July 2013| accessdate=2014-05-21}}</ref> Since 2010, another 10 stores have closed or are scheduled to close, including Pittsburgh (despite local efforts to save it),<ref name=gough>{{cite news| last=Gough| first=Paul J.| title=Saks Fifth Avenue Downtown to close March 17|url=http://www.bizjournals.com/pittsburgh/news/2012/01/19/saks-fifth-avenue-to-close-march-17.html| accessdate=2014-05-21| work=[[Pittsburgh Business Times]]| date=19 January 2012}}</ref> [[Denver]],<ref name=moore>{{cite news| last=Moore| first=Paula| title=Saks Fifth Avenue's Denver store to close| url=http://www.bizjournals.com/denver/news/2011/01/05/saks.html?page=all| accessdate=2014-05-21|newspaper=[[American City Business Journals|Denver Business Journal]]| date=5 January 2011}}</ref> [[Charleston, South Carolina|Charleston]], [[South Carolina]], [[Stamford, Connecticut|Stamford]], [[Connecticut]], Austin, Dallas Willow Bend and [[Orlando, Florida|Orlando]] which closed in 2014.{{Update inline|date=September 2015}} Additionally, the company closed its location in [[Tampa, Florida|Tampa]], operated since 1996, in April 2013{{Cn|date = November 2015}} and its last [[Dallas]] location in June 2013 to implement the "strategy of employing our resources in our most productive locations"<ref name="dallas">{{cite news|url = http://www.retailfacilitybusiness.com/the-latest-news/629-saks-fifth-avenue-to-close-store-in-dallas-retailer-news.html|title = Saks Fifth Avenue To Close Store in Dallas|work = Retailfacilitybusiness.com|date = 4 February 2013|accessdate = 2014-05-21|archive-url = https://web.archive.org/web/20131029225202/http://www.retailfacilitybusiness.com/the-latest-news/629-saks-fifth-avenue-to-close-store-in-dallas-retailer-news.html|archive-date = 2013-10-29}}</ref>.


As of 2013, the New York flagship store generated around 20% of annual sales at $1 billion, with other stores being less profitable according to analysts.<ref name="wahba-ho" />
As of 2013, the New York flagship store generated around 20% of annual sales at $1 billion, with other stores being less profitable according to analysts.<ref name="wahba-ho" />

Revision as of 23:02, 14 November 2015

This article is about the chain of department stores. For its former parent company, see Saks, Inc.
Saks Fifth Avenue
Company typeSubsidiary
IndustryRetail
Founded1898 (1898)
FounderAndrew Saks
Headquarters
New York City, New York
,
U.S.
Number of locations
Saks Fifth Avenue: 39[1][2]
Saks Off 5th: 110[3]
OwnerHudson's Bay Company
ParentSaks, Inc.
SubsidiariesSaks Off Fifth
Websitesaksfifthavenue.com

Saks Fifth Avenue is an American department store chain owned by the Canadian retailer, Hudson's Bay Company. Its flagship store and corporate headquarters are located on Fifth Avenue in Midtown Manhattan, New York City.[5][6] Competitors in the US have historically included Bergdorf Goodman, Neiman Marcus, Bloomingdale's, and its sister Lord & Taylor.

History

The 1996–2007 logo
Flagship store in Manhattan, New York

Saks Fifth Avenue is the successor of a business founded by Andrew Saks in 1867 and incorporated in New York in 1902 as Saks & Company. Saks died in 1912, and in 1923 Saks & Co. merged with Gimbel Brothers, Inc., which was owned by a cousin of Horace Saks,[7] Bernard Gimbel, operating as a separate autonomous subsidiary. On September 15, 1924, Horace Saks and Bernard Gimbel opened Saks Fifth Avenue in New York City, with a full-block avenue frontage south of St Patrick's Cathedral, facing Rockefeller Center. The architects were Starrett & van Vleck, who developed a reticent, genteel Anglophile classicizing facade similar to their Gimbels Department Store in Pittsburgh (1914).

When Bernard's brother, Adam Gimbel, became president of Saks Fifth Avenue in 1926 after Bernard's sudden passing, the company assumed national aspirations, opening its branch that year in Palm Beach, Florida, as a seasonal resort store, followed by a second resort store in Southampton, New York, in 1928. The first full-line year-round Saks store opened in Chicago, in 1929, followed by another resort store in Miami Beach, Florida. In 1938, Saks expanded to the West Coast, opening in Beverly Hills, California. By the end of the 1930s, Saks Fifth Avenue had a total of 10 stores, including resort locations such as Sun Valley, Idaho, Mount Stowe, and Newport, Rhode Island. More full-line stores followed with Detroit, Michigan, in 1940 and Pittsburgh, Pennsylvania, in 1949. In Downtown Pittsburgh, the company moved to its own freestanding location approximately one block from its former home on the fourth floor in the downtown Gimbel's flagship. The San Francisco location opened in 1952. More expansion followed from the 1960s through the 1990s including the Midwest, and the South, particularly in Texas.

BATUS Inc. acquired Gimbel Bros., Inc. and its Saks Fifth Avenue subsidiary in 1973 as part of its diversification strategy. In 1990, BATUS sold Saks to Investcorp S.A., which took Saks public in 1996 as Saks Holdings, Inc. In 1998, Proffitt's, Inc. the parent company of Proffitt's and other department stores, acquired Saks Holdings Inc. Upon completing the acquisition, Proffitt's, Inc. changed its name to Saks, Inc.

In 2005, vendors filed against Saks alleging unlawful chargebacks. The U.S. Securities and Exchange Commission (SEC) investigated the complaint for years, and according to the New York Times "exposed a tangle of illicit tactics that let Saks ... keep money it owed to clothing makers", inflating Saks' yearly earnings up to 43% and abusively collecting around $30 million from suppliers over seven years.[8] Saks settled with the SEC in 2007, after firing three or more executives involved in the fraudulent activities.[9][8]

Since 2000 Saks has opened international locations in Saudi Arabia, United Arab Emirates, Bahrain, Kazakhstan, and Mexico City.[10]

In August 2007, the United States Postal Service began an experimental program selling the plus zip code extension to businesses. The first company to do so was Saks Fifth Avenue, which received the zip code of 10022-SHOE (7463) for the eighth-floor shoe department in its flagship Fifth Avenue store.[11]

During the 2007-2009 recession, Saks Fifth Avenue had to close some stores and to cut prices and profit margins, thus according to Reuters "training shoppers to expect discounts. It took three years before it could start selling at closer to full price".[12] Since 2010, another 10 stores have closed or are scheduled to close, including Pittsburgh (despite local efforts to save it),[13] Denver,[14] Charleston, South Carolina, Stamford, Connecticut, Austin, Dallas Willow Bend and Orlando which closed in 2014.[needs update] Additionally, the company closed its location in Tampa, operated since 1996, in April 2013[citation needed] and its last Dallas location in June 2013 to implement the "strategy of employing our resources in our most productive locations"[15].

As of 2013, the New York flagship store generated around 20% of annual sales at $1 billion, with other stores being less profitable according to analysts.[12]

On July 29, 2013, the Hudson's Bay Company (HBC), owner of the competing chain Lord & Taylor, announced it would acquire Saks Fifth Avenue's parent company for US$2.9 billion.[16] Plans called for up to seven Saks Fifth Avenues to open in major Canadian markets, using either existing Hudson's Bay locations or new construction. Expansion into Canada was expected to challenge Canadian Holt Renfrew chain and compete with Nordstrom's expansion into Canada, which began in summer 2014 with the opening of a Nordstrom store in Calgary. In January 2014, HBC announced the first Saks store in Canada would occupy 150,000 sq ft (14,000 m2) in its flagship Queen Street building in downtown Toronto. The store will open in autumn 2015[needs update] with a second Toronto area location in the Sherway Gardens shopping center opening in spring 2016. Earlier, the company announced it would convert its location in the Hudson's Bay Centre at Bloor and Yonge Streets to Saks Fifth Avenue to make it part of the upscale Yorkville shopping district.[17]

On January 6, 2014, Marigay McKee, previously Chief Merchant at Harrods, became president of Saks Fifth Avenue.[18][19] She stepped down 15 months later on April 2, 2015, and was replaced by Marc Metrick, a former executive at Saks’s parent company, Hudson’s Bay.[4]

2014 transgender discrimination controversy

In 2014 Saks fired transgender employee Leyth Jamal after she was "belittled by coworkers, forced to use the men's room and repeatedly referred to by male pronouns (he and him)".[20][21] After Jamal submitted a lawsuit for unfair dismissal, the company stated in a motion to dismiss that "it is well settled that transsexuals are not protected by Title VII."[20][21][22] In a court filing, the United States Department of Justice rebuked Saks' argument, stating that "discrimination against an individual based on gender identity is discrimination because of sex."[23] The company was removed from the Human Rights Campaign's list of "allies" during the controversy.[20][21][22] The lawsuit was later settled amicably without disclosing the terms of the settlement.[23]

  • Former his and hers Saks Fifth Avenue stores face each other on the Magnificent Mile in Chicago. The men's department relocated to the main building in 2014.
    Former his and hers Saks Fifth Avenue stores face each other on the Magnificent Mile in Chicago. The men's department relocated to the main building in 2014.
  • Saks Fifth Avenue in Santa Fe Mall in Mexico City.
    Saks Fifth Avenue in Santa Fe Mall in Mexico City.
  • Saks at the North Star Mall in San Antonio, Texas
    Saks at the North Star Mall in San Antonio, Texas

See also

References

  1. ^ Merrick, Amy (2013-07-30). "The End of Saks As We Knew It". The New Yorker. Retrieved 2015-11-09.
  2. ^ "Official About Us page". Saks Fifth Avenue. Retrieved 2015-11-09.
  3. ^ http://www.wsj.com/articles/lord-taylor-jumps-into-discount-game-1445812325
  4. ^ a b President of Saks Steps Down. The New York Times. Retrieved on April 3, 2015.
  5. ^ "Store Locations and Events". Saks Inc. Retrieved 2014-05-21.
  6. ^ "About Us". Saks Fifth Avenue. Retrieved 2014-05-21.
  7. ^ Block, Maxine; Rothe, Anna Herthe; Candee, Marjorie Dent (1951). Current Biography Yearbook. H. W. Wilson Co. p. 173.
  8. ^ a b Barbaro, Michael (2007-09-06). "Saks Settles With S.E.C. on Overpayments". The New York Times. ISSN 0362-4331. Retrieved 2015-09-21.
  9. ^ "Saks Inc. Settles Financial Reporting and Related Charges by SEC" (Press release). Securities and Exchange Commission. 5 September 2007. Retrieved 2014-05-21.
  10. ^ "Sak's Fifth Avenue International Locations | Saks website". saks.com. Retrieved 2015-09-12.
  11. ^ "Saks department gets own ZIP code: 10022-SHOE". USA Today. Associated Press. 24 May 2007. Retrieved 2014-05-21.
  12. ^ a b Wahba, Phil; Ho, Solarina (29 July 2013). "Hudson's Bay CEO bets big on department stores with Saks buy". Reuters. Retrieved 2014-05-21.
  13. ^ Gough, Paul J. (19 January 2012). "Saks Fifth Avenue Downtown to close March 17". Pittsburgh Business Times. Retrieved 2014-05-21.
  14. ^ Moore, Paula (5 January 2011). "Saks Fifth Avenue's Denver store to close". Denver Business Journal. Retrieved 2014-05-21.
  15. ^ "Saks Fifth Avenue To Close Store in Dallas". Retailfacilitybusiness.com. 4 February 2013. Archived from the original on 2013-10-29. Retrieved 2014-05-21.
  16. ^ Lewis, Michael (29 July 2013). "Hudson's Bay rolls the dice on Saks". Toronto Star. Retrieved 2014-05-21.
  17. ^ Strauss, Marina (27 January 2014). "Tycoon shows his real estate savvy with sale of Hudson's Bay store". The Globe and Mail. Retrieved 2014-05-27.
  18. ^ Diderich, Joelle (22 January 2014). "Fashion Crowd Toasts Richard Baker in Paris". Women's Wear Daily. Retrieved 2014-05-21.
  19. ^ "Saks Fifth Avenue Appoints Mark Briggs Chief Marketing Officer" (Press release). Hudson's Bay Company. 19 December 2013. Retrieved 2014-05-21.
  20. ^ a b c Steinmetz, Katy (2015-01-12). "How the Lawsuit Between Saks and a Transgender Employee Might Shake Out". Time. Retrieved 2015-01-13.
  21. ^ a b c Hoffman, Meredith (2015-01-13). "Saks Is Fighting to Discriminate Against a Transgender Ex-Employee". Vice News. Retrieved 2015-01-13.
  22. ^ a b Reilly, Nicholas (2015-01-09). "New York department store Saks 'defends discrimination against transgender staff'". Metro. Retrieved 2015-01-13.
  23. ^ a b Zillman, Claire (2015-03-05). "Saks settles discrimination suit with transgender employee, after sparking outrage". Fortune. Retrieved 2015-10-08.
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