Saks Fifth Ave Essay
Saks Fifth Avenue Saks Fifth Avenue is a department store chain that specializes in upscale merchandise that usually caters to higher income individuals, mostly well-to-do women between the ages of 35 and 55, while at the same time, still being able to offer high-end merchandise at better prices then smaller boutique type stores. Which is the very first reason why I chose this company because it allows a college student like I enjoy luxury merchandise at a reasonable price and it also has been making changes to attract young middle- class shoppers?
SFA is near the top of the line in fashion; selling apparel, cosmetics, jewelry, and shoes from top designers such as Burberry, Chanel, and Prada, as well as Saks’ own private label merchandise. The retail specialty store, Saks Fifth Avenue, has stood as a symbol of American wealth and prestige for most of the twentieth century. The firm was founded in 1902 when Andrew Saks, a street peddler from Philadelphia, opened Saks & Company, a men’s clothing shop in Washington, D. C. Saks soon expanded his store operations to Richmond, Virginia, Indianapolis, and New York City.
For his New York store, he began providing high-end retail market by providing high quality merchandise and offering first-class service. After Saks became president after his father’s death in 1912, Saks made a promise to become the premiere specialty store for New York society. Saks buyers such the globe for unique and fashionable merchandise in order to build the store’s reputation. With the shift of New York retail uptown during the 1910s, it became apparent to Saks that for the company to continue its fashionable reputation, it needed a more prestigious address than its present location on34th Street near Herald Square.
Horace Saks agreed to merge his retail store chain with Gimbel Brothers department store, which operated stores in Philadelphia; Madison, Wisconsin; and New York. Saks’ old Herald Square store site was leased to Gimbels and combined with their existing store nearby. On September 15, 1924, Horace Saks and Bernard Gimbel opened Saks Fifth Avenue, making it the largest department store in the world at that time. As business boomed, a cousin of Horace Gimbel, Adam, became his new partner.
Soon after Horace died suddenly of septic poisoning in 1925, Adam took over. Adam Gimbel got the credit for building the store’s vision and turning it into the national chain store it is. One of Adam Gimbel’s first acts was to redecorate the flagship store in the Art Moderne style, featured at the 1925 Paris Exposition. Gimbel also broke up the department store into a series of specialty salons, to focus on his clients in a more intimate setting. He filled Saks Fifth Avenue with exclusive merchandise from Europe and the U.
S. and established small boutiques that made custom men’s shirts and ladies’ made-to-order dresses. He built the dominant fine shoe business and believed in a large stock, even in difficult economic times, so customers could have a large range of choices. He opened the company’s first Resort store in Palm Beach, Florida, becoming the first specialty store to expand nationally. Both chains prospered, with Gimbel’s and Saks & Company supplying all income levels, while Saks Fifth Avenue appealed to the well-heeled.
By 1969, the year Adam retired; there were 28 Saks Fifth Avenue stores in 16 states. By 1978 the number of stores reached 30, and in 2004 there were 63 including the off 5th outlet stores. At the beginning of the 21st century, Saks Fifth Avenue faced a number of internal and external challenges to its survival. In 1973 the U. S. British American Tobacco (B. A. T. ) offered to purchase Gimbel Bros. As the company was experiencing financial problems, it was really something to think about.
They renovated the Fifth Avenue store in 1978, closed the Gimbel chain in 1986, and planned a $300 million expansion the following year. Saks Fifth Avenue was sold in 1990 for $1. 6 billion. Bahrain-based Investcorp was an international investment group that also owned Gucci Group and Tiffany & Co. Phillip B. Miller, formerly of Neiman Marcus from 1977-83 was named CEO of Saks Fifth Avenue. The first Saks Fifth Avenue outlet store opened in Franklin Mills, Pennsylvania, in 1992. In late 1994, Saks opened four former I. Magnin stores in Beverly Hills, Carmel, San Diego and Phoenix.
In August 1995 when Saks opened in West Beverly Hills, Saks Fifth Avenue became Beverly Hills’ largest specialty store, with 260,000 combined square feet between the expanded and renovated Saks East and new Saks West, which houses all men’s categories, plus women’s special sizes. In August 1997, the company opened a new men’s store in San Francisco on Post Street, creating more women’s designer selling space in the current San Francisco location. In 1998, Saks Holdings, and Profit’s, merged, taking the company name of Saks Incorporated.
In 2000 Saks opened up Saks. com, offering in-store categories, as well as exclusive products which have really increased Saks business. Today it is known for its outstanding selling services and merchandise offerings. To receive the best of European and American designers for men and women, visit one of its 53 stores servicing customers in 25 states. I believe that Saks will only improve for the years to come because its outstanding services will only get better and so will its prices, since there new goal is to also cater to the working class.
In 2007, the shoe department of Saks got its own zip code, 10022-SHOE. The department received the new code after the United States Postal Service began selling vanity ZIP codes to businesses. The move marked the first time the Postal Service used letters in a zip code, and the first time a single floor in a building received its own code. Saks Fifth Ave currently holds an approximate of 15,000 employees. The CEO, In January 2002, Stephen I. Sadove, formerly Senior Vice President of Bristol-Myers Squibb Company, joined the management team of Saks Incorporated as Vice Chairman.
Sadove is a graduate of Hamilton College and holds an MBA from Harvard Business School. He currently serves on many civic boards, including Harvard Business School Club of New York, Northern Westchester Hospital Foundation, Hamilton College, A Better Chance, and Hazelden New York. Saks management skills contains of unlimited challenges and responsibilities for talented individuals with management potential, which we clearly see that Sadove has with his 25 years of experience in marketing and consumer product career.
Over the years Saks has made many changes in its management team by adding Ronald L. Frasch President and Chief Merchandising Officer Michael Brizel Executive Vice President and General Counsel Jennifer de Winter Executive Vice President of Stores Christine A. Morena Executive Vice President of Human Resources Michael Rodgers Executive Vice President of Service Operations and Chief Information Officer Kevin Wills Executive Vice President and Chief Financial Officer Denise Incandela President, Saks Direct and Group Senior Vice President of Saks Fifth Avenue Robert T.
Wallstrom President, Saks Fifth Avenue OFF 5TH and Group Senior Vice President of Saks Fifth Avenue. Saks operates through departmental stores and malls. The company now owns stores as Saks Fifth Avenue (SFA), Off Fifth and Club Libby Lu (CLL). The company also owns 190 department stores. Saks Fifth Avenue operates as the anchor store. It deals with luxury, premium, and discounted products. There are 54 Saks Fifth Avenue stores located in US. The store acquires merchandise from both well known vendors and new and emerging designers and because of its luxury products; Saks has to fallow the US GAAP.
At Saks Incorporated, it is their culture to help and improve the communities that makes Saks possible. Saks stores focus individual attention on service causes across the country. These causes include women’s cancer research and treatment, St. Jude’s Children’s Research Hospital, charity: water, the American Cancer Society, the American Heart Association, the United Cerebral Palsy Foundation, Habitat for Humanity, the Juvenile Diabetes Foundation, the Make-a-Wish Foundation and many more. Customer service is what Saks Fifth Avenue stands for; they really cater to their customer’s wants and needs.
Saks customer service offer, coat and package check, gift cards, complimentary package delivery to local NYC hotels, hotel, theater, airline, and restaurant reservations, local messenger service, taxi and limo service, Saks Fifth Avenue also features wardrobe consulting for men and women, studio services, and the Elizabeth Arden Red Door Salon and Spa. Saks is also one of the first retailers to adopt a higher efficiency halogen lamp which reduced energy consumption by 10% without reducing light output or lamp life.
Now, they are moving to the latest generation of high-efficiency fluorescent lighting and exploring new technologies that may allow us to produce our own electricity and further reduce our energy consumption. The crazy thing is that it does not stop there, there service to their employees is fantastic, their benefit package includes Full medical, dental and vision coverage, a 401K retirement savings plan, life insurance, an employee stock purchase plan, an employee discount of 40% off plus double sale, as well as paid vacations and holidays.
Over the past years, the Neiman Marcus Group has been at the top of the market for luxury goods, turning the business of selling expensive handbags, shoes, jewelry, cosmetics and gifts, and Chanel suits into a fine art. Now, its closest rival, Saks Fifth Avenue, which for years has been at rock bottom by poor management, is trying to make a comeback, setting the stage for a battle that will rock the fashion world. Saks is in the retail market industry.
Its top competitors are Barney’s New York, Bergdorf Goodman, Bloomingdale’s, and Neiman Marcus. Saks is really getting ahead of the game by first correcting its problems from the lawsuit filed in 2008 alleging that several of the nation’s largest department stores and fashion designers have repeatedly engaged in false advertising and mislabeling of fur garments. Saks will now impose a strict new garment labeling practices for all 53 of its Saks Fifth Avenue retail stores, its outlet Saks off Fifth stores and its online marketplace.
Additionally, the retailer will change its advertising policies and endorse federal legislation to close a loophole that now allows many fur-trimmed items to be sold without informing consumers whether and what kind of fur those products contain. Even though Saks is making progress, it is still at the bottom in the department store industry with the lowest relative performance in sales this year, it ranked first with the loss of 1. 78%.
Now is the time to invest in a stock for Saks because it is only $9. 10 for one its percentage to change is only 2. 94% and its volume is 3,242,597 people. Even more reason to invest, is that Saks is expanding its stores with store sizes ranging from less than 20,000 sq. feet in small market locations, such as Carmel, California to over 250,000 sq. feet in its two stores located Saks Fifth Avenue has 63 stores located in 24 states, the District of Columbia and in Saudi Arabia.
Saks Fifth Avenue has one or more stores in Alabama, Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Louisiana, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, Nevada, New York, (where their flagship store is located),Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Texas, and Virginia. California leads with stores in 12 locations, followed closely by Florida with stores 11 locations. Riyadh is home to Saks Fifth Avenue’s Middle East presence.
Future store openings are slated for opening early next year include stores in Raleigh and Charlotte, North Carolina, Plano, and Texas. Works Cited “About Us | Our History. ” Saks Incorporated. Web. 15 June 2010. . “Saks Is Among the Companies in the Department Stores Industry with the Lowest Relative Performance (SKS, DDS, JCP, M, JWN). ” Select Sector SPDRs. Web. 15 June 2010. . Seeker, Job. “Saks Fifth Avenue Employment. ” HubPages. Web. 13 June 2010. . “Saks Fifth Avenue Enterprises Announces Management Changes. ” Business Wire. Business Wire. 2001. HighBeam Research. 14 Jun. 2010 .