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Saks Fifth Avenue

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Saks Fifth Avenue
Company typePrivate
IndustryRetail
Founded1867; 159 years ago (1867)
FounderAndrew Saks
Headquarters
New York City
,
United States
Area served
United States, Middle East, Canada (until 2025), Mexico (franchise until 2023)
ProductsLuxury goods, clothing, footwear, accessories, cosmetics
OwnerSaks Global (since 2024)
ParentSaks Global (independent since 2024)
Websitewww.saksfifthavenue.com

Saks Fifth Avenue (commonly referred to as Saks) is a prestigious American luxury department store chain established in 1867 by Andrew Saks. The inaugural location was launched in Washington, D.C.’s F Street shopping area, later extending its presence to Manhattan with the opening of its Herald Square outlet in 1902. In 1923, Saks became part of the Gimbels department store network and experienced nationwide growth under this ownership, including the debut of its iconic flagship store on Fifth Avenue in 1924. Ownership shifted when Brown & Williamson acquired both Gimbels and Saks in 1973, followed by a transfer to its affiliate Batus Inc. in 1980. Although Gimbels ceased operations in 1987, Saks was sold to Investcorp three years later. That same year marked the launch of Saks Off 5th, initially conceived as a clearance outlet for Saks merchandise, which has since grown into a prominent off-price retail chain.[1][2] In 1998, Proffitt's, Inc., which later rebranded as Saks, Inc., acquired Saks.

In 2013, the Hudson's Bay Company took ownership of Saks, Inc.[3][4] In 2024, Saks and its off-price division Saks Off 5th were separated into an independent entity named Saks Global, aligning them as sister brands alongside luxury retailers Bergdorf Goodman and Neiman Marcus.[5][6] Beyond the United States, Saks has extended operations into the Middle East; earlier international ventures included a franchise partnership with Grupo Sanborns in Mexico from 2007 until 2023 and full ownership of Canadian locations from 2016 through 2025.

Early history

File:Saks Building Indianapolis, 1906, one year after Andrew Saks big renovation.png
Saks & Co. in Indianapolis, 1906

Born into a German Jewish family in Baltimore, Maryland, Andrew Saks began his career as a paperboy and peddler. At just 20 years old, in the challenging economic climate of 1867—two years following the conclusion of the American Civil War—he and his brother Isadore launched a men's clothing store in Washington, D.C.. The initial location for A. Saks & Co. was within the Avenue House Hotel building at 517 (300–308) 7th Street, N.W., situated in what remains the heart of Washington’s downtown shopping area. Saks distinguished his business by implementing fixed pricing with no haggling and providing refunds on returns, practices that were uncommon at that time and place.Template:Fix/category[citation needed] The company gained recognition for its assertive yet honest advertising strategies, described by the Washington Evening Star as "forceful and interesting, but strictly truthful." Notably, on April 4, 1898, Saks published a two-page advertisement in the newspaper—a considerable size for that era. Expanding its footprint, Saks acquired the neighboring store and commenced construction in 1887 on a larger establishment at the site of the former Avenue Hotel Building at 7th and Market Space (currently known as United States Navy Memorial Plaza).[7]

By 1896, Saks & Co. operated stores not only in Washington, D.C., but also in Norfolk and Richmond, Virginia; New York City; and Indianapolis. In Washington, the company proudly promoted itself as "Washington's Wonderful Store".Cite error: The opening <ref> tag is malformed or has a bad name

20th century history

File:Saks and Co., Washington D.C. 1920 01.jpg
Saks and Co. alongside Kann's, situated at the northwest corner of 7th St. and Pennsylvania Avenue, Washington, D.C. (1920)

In 1902, Saks launched a substantial retail location in New York City, specifically at Herald Square on the intersection of 34th Street and Broadway.[7][8] The New York establishment was managed as a family-run enterprise by Andrew Saks together with his brother Isadore and his sons Horace and William.Template:Fix/category[citation needed] Following Andrew Saks's death in 1912, leadership passed to his son Horace.[8]

Gimbels ownership

In 1923, Saks & Co. merged with Gimbel Brothers, Inc., an entity controlled by Horace Saks's cousin,[9] Bernard Gimbel, yet continued to function as an independent subsidiary. On September 15, 1924, Horace Saks and Bernard Gimbel inaugurated the Saks Fifth Avenue Building at 611 Fifth Avenue, occupying a full block frontage just south of St. Patrick's Cathedral and facing the future site of Rockefeller Center.[10] The architectural firm Starrett & van Vleck designed the building drawing inspiration from classical architecture.[8]

After Horace Saks's unexpected passing in 1926, Adam Gimbel, Bernard’s cousin, assumed presidency of Saks Fifth Avenue and spearheaded expansion by establishing seasonal resort locations in various affluent areas: Palm Beach (1926), Atlantic City (1927), Lincoln Road in Miami Beach (1929), Southampton on Long Island (1931), Newport, Rhode Island (1935), both Sun Valley, Idaho and Westbury, L.I. (1936), as well as Greenwich, Connecticut (1937).[11]

Saks debuted its inaugural full-service flagship store in Chicago in 1929 and relocated to a larger venue within six years.[11] By the conclusion of the 1930s decade, Saks Fifth Avenue operated ten stores: two major urban flagships located in New York and Chicago alongside eight seasonal resort outlets.

During World War II, Saks established Navy and Army shops in both New Haven, Connecticut and Princeton, New Jersey. Post-war, these smaller branches were transformed into University Shops targeting Ivy League communities nearby. Additional University Shops opened subsequently near Harvard in Cambridge, Massachusetts, and another in Ann Arbor, Michigan by 1960.[11] Prior to U.S. involvement in the war, two prominent urban flagship stores had already been launched: one at its iconic Beverly Hills location in California and another in Detroit (1940). Following the war’s end, smaller downtown stores opened in Pittsburgh (1949), Philadelphia (1952), and San Francisco (1952)[11], where Saks directly competed with established local luxury retailer I. Magnin.Cite error: The opening <ref> tag is malformed or has a bad name

Throughout the 1950s, as consumer preference shifted from downtown districts to suburban shopping centers, Saks Fifth Avenue responded by inaugurating its first mall anchor store in 1954 at Sunrise Center—now known as The Galleria at Fort Lauderdale. Some suburban outlets were standalone stores situated in suburbs with thriving downtown shopping areas such as White Plains, New York (1954) and both Garden City on Long Island and Surfside near Miami in 1962. Other locations opened within malls located downtown in cities like New Orleans, Boston, and Minneapolis. Nevertheless, the majority of new Saks stores over subsequent decades up to the 1990s were established inside shopping malls.[11]

Brown & Williamson and Batus Acquisition

During the 1990s, Saks continued its growth, particularly targeting markets in Texas, Florida, and California. However, plans to launch a store in Mexico City were abandoned after the Mexican peso crisis of 1995. The intended location at the Molière222 mall in Polanco was eventually taken over by El Palacio de Hierro, which still operates there. Following the closure of California-based I. Magnin in 1995, Saks acquired several of their former sites, enabling expansion into San Diego's Fashion Valley and the Carmel area. Mirroring strategies from the 1950s, Saks introduced a series of smaller "Main Street" outlets in suburban downtown shopping districts such as Pasadena, Santa Barbara, and La Jolla in California, as well as locations in Greenwich, Connecticut, and Charleston, South Carolina. In Texas, Saks took over three stores previously operated by Marshall Field's as that chain exited the market. By 1997, Saks relocated its primary Houston store from the Saks Pavilion to The Galleria, while also opening a new branch at Town & Country. The Dallas Galleria store was expanded by moving to a larger space within the mall. Additional openings included Saks Austin in 1997 and Fort Worth in 2000.

Throughout the 1990s in Florida, Saks Fifth Avenue inaugurated seven new stores, bringing the total number statewide to eleven by decade’s end. New locations were established in Palm Beach Gardens, Naples, Fort Myers, Orlando, Sarasota, Tampa, and the Boca Raton store was expanded to twice its original size.

Investcorp and Proffitt's Acquisition

In 1990, the company introduced "Saks Off 5th", a discount outlet brand derived from the main Saks label. By 2016, this off-price chain had expanded to 107 locations globally.

Proffitt's, Inc., the parent organization of Proffitt's and several other department store chains, acquired Saks Holdings Inc. in 1998. Following the completion of this transaction, Proffitt's, Inc. rebranded itself as Saks, Inc..

Developments in the 21st Century

By 2004, Saks was experiencing a same-store sales growth of 7.7% annually, though this growth lagged behind competitors Neiman Marcus (17%) and Nordstrom (10%). Industry analysts noted that Saks was "struggling to maintain its cachet" in Southern California amid competition from these rivals and Bloomingdale's. On October 1 of that year, Saks announced plans to close eight underperforming stores, primarily smaller locations situated in Pasadena, Palos Verdes, Mission Viejo, La Jolla, and Carmel in California, as well as Garden City NY, Hilton Head SC, and Downtown Minneapolis.

In August 2007, the United States Postal Service initiated a pilot program allowing companies to purchase ZIP+4 codes for specific departments or units. Saks Fifth Avenue became the first retailer to adopt this system, receiving the ZIP code 10022-7463 ("SHOE" on a U.S. touch-tone phone) for its eighth-floor shoe department at the flagship Fifth Avenue store.

During the economic downturn from 2007 to 2009, Saks was compelled to reduce prices and profit margins. Reuters reported that this shift conditioned customers to anticipate discounts, with it taking approximately three years before Saks could resume pricing closer to full value. Between 2010 and 2013, several store closures occurred, including locations in Orange County, Denver, Downtown Pittsburgh, Chicago after the holidays in 2012, and Dallas in early 2013.

As of 2013, the flagship New York store—valued by analysts between $800 million and over $1 billion—accounted for roughly 20% of Saks' total annual revenue at $620 million. Other stores were generally considered less profitable by comparison.

Under Hudson's Bay Company (2013–2024)

On July 29, 2013, the Canadian retailer Hudson's Bay Company (HBC), recognized as the oldest commercial enterprise in North America and proprietor of the rival chain Lord & Taylor, declared its intention to acquire the parent company of Saks Fifth Avenue for US$2.9 billion.

In 2015, Saks initiated a $250 million, three-year renovation project for its flagship location on Fifth Avenue. Later that year, in October, Saks revealed plans to open a new store in Greenwich, Connecticut. Additionally, during the fall of 2015, Saks announced it would replace its current outlet at the Houston Galleria with a newly constructed store.

On January 15, 2021, Saks Fifth Avenue introduced a 54,000-square-foot (5,000 m2) area on the fifth floor of its New York flagship named Barneys at Saks. This partnership was designed to uphold Barneys New York’s legacy of discovering and supporting emerging fashion designers. Shortly after, on January 25, Saks launched the first standalone Barneys at Saks boutique in a 14,000-square-foot (1,300 m2) space located in Greenwich, Connecticut, marking the debut of men's apparel and home furnishings in that market.

In March 2021, Hudson's Bay Company and growth capital firm Insight Partners separated Saks Fifth Avenue’s ecommerce operations into an independent entity called "Saks". Insight Partners invested $500 million as a minority shareholder. Meanwhile, the retailer’s 39 physical stores continued operating under the name "SFA", remaining fully owned by HBC. At this time, Marc Metrick—who had been president of Saks Fifth Avenue since 2015—was appointed CEO of the ecommerce business.

In April 2021, Saks declared it would shutter all 27 fur salons—including locations in New York, Boston, Philadelphia, and Beverly Hills—by January 2022. Furthermore, the company committed to ceasing sales of products made from wild or farmed animal fur by January 2023. By August of the same year, Saks announced a partnership with WeWork to repurpose certain store spaces into co-working environments.

In June 2022, Saks revealed plans to transform its original 1938 Beverly Hills building at 9600 Wilshire Boulevard into office and residential units. However, Saks Beverly Hills continues operations from adjacent buildings formerly housing I. Magnin and Barneys, which had been integrated into the store complex.

Under Saks Global (2024–present)

In July 2024, Saks revealed its intention to acquire competing retailer Neiman Marcus in a deal valued at approximately $2.65 billion. The transaction was completed by December 2024, resulting in Saks Fifth Avenue becoming a division of the newly formed parent entity, Saks Global.

Canada

The strategy for expanding into Canada was developed following the 2013 acquisition by HBC, envisioning up to seven Saks stores nationwide, with three locations ultimately opening. February 2016 marked the debut of a 150,000 sq ft (14,000 m2) Saks Fifth Avenue outlet in downtown Toronto, situated within a portion of the Hudson's Bay Company flagship building, linked by a sky bridge to the nearby Eaton Centre, the largest mall in the city. A subsequent site launched shortly after at Sherway Gardens in the Greater Toronto Area. The third Canadian store commenced operations in February 2018 at Calgary’s Chinook Centre.

Following the bankruptcy and dissolution of Hudson's Bay, it was announced on March 14, 2025, that two of the three Canadian Saks Fifth Avenue stores, along with all thirteen Saks Off 5th outlets across Canada, would be liquidated and permanently closed. Liquidation sales were scheduled to begin within the following week, with full closures anticipated by June 2025.

India

In early 2025, a franchise partnership was established with Reliance Industries to introduce Saks Fifth Avenue and Saks Off 5th outlets across India.

Mexico

File:Centro comercial sante fe.jpg
Saks Fifth Avenue location at Santa Fe Mall in Mexico City

The first Saks store in Mexico debuted in November 2007 through a franchise agreement with Grupo Sanborns, part of billionaire Carlos Slim's business conglomerate. This initial store was situated in the upscale western area of Mexico City within Centro Santa Fe, the nation’s largest shopping center. It ceased operations in 2022. Another Saks outlet launched in 2010 at Plaza Carso in the prestigious Polanco district but closed its doors in October 2020.

By August 2023, Grupo Sanborns confirmed the closure of its remaining Saks location at Centro Santa Fe, making it the last Saks store active in Mexico following the earlier shutdown of the Polanco branch. The space was slated to be replaced by a Sears Mexico store, also under Grupo Sanborns' management, with plans to retain existing employees.

Middle East

The inaugural Saks store in the Middle East debuted in November 2001 at the Kingdom Centre in Riyadh, Saudi Arabia. This location ceased operations in 2012. Following licensing agreements signed in 2003, Saks announced intentions to establish outlets in Bahrain, Kuwait, Qatar, and the United Arab Emirates, alongside plans for five to ten stores throughout Japan. Additionally, potential sites for new stores were being explored in Bahrain and Beirut. The Riyadh franchise, owned by Prince Al Waleed bin Talal Al Saud, shut down after its licensing contract ended in 2012.

In 2005, Saks launched an 80,000-square-foot store within Dubai's BurJuman Centre; however, this store closed in 2016. This closure marked Saks' final presence in the UAE after unsuccessful expansion efforts. Initially, the Dubai store was slated to open in early 2004. Plans for a Doha location at Landmark Mall were announced for 2005 but never materialized. Furthermore, a Tokyo store was projected to open that same year.

The third Middle Eastern Saks outlet opened its doors in 2008 at City Centre Bahrain in Manama. Spanning two floors and covering approximately 57,000 square feet (5,295 square meters), this remains the only Saks store in the Middle East following the closures of Riyadh and both Dubai locations.

Expanding into Central Asia, Saks licensed its first store in Almaty, Kazakhstan, in 2012. Situated within the new Esentai Mall alongside other luxury brand boutiques, the Almaty store occupies three floors and encompasses around 91,000 square feet (8,454 square meters).

Controversies

In 2005, several vendors accused Saks of engaging in improper chargeback practices. The U.S. Securities and Exchange Commission (SEC) conducted a prolonged investigation into these allegations, uncovering, as reported by the New York Times, a complex scheme that allowed Saks to retain funds owed to apparel manufacturers. This manipulation inflated the company’s annual profits by as much as 43% and led to the excessive collection of approximately $30 million from suppliers over a seven-year period. Saks reached a settlement with the SEC in 2007, coinciding with the dismissal of three or more executives implicated in these fraudulent actions.

In 2014, Saks terminated the employment of Leyth Jamal, a transgender individual, following claims that she was subjected to workplace harassment, including being demeaned by colleagues, compelled to use the men's restroom, and repeatedly addressed with male pronouns (he/him). After Jamal filed a lawsuit alleging wrongful termination, Saks responded in a motion to dismiss by asserting that "it is well established that transsexuals are not protected under Title VII of the Civil Rights Act of 1964." The United States Department of Justice, however, contested this position in court filings, emphasizing that "discrimination based on gender identity constitutes discrimination because of sex." During this dispute, the Human Rights Campaign removed Saks from its roster of "allies." The litigation concluded with an out-of-court settlement under undisclosed conditions.

Following Hurricane Maria in 2017, Saks’s San Juan location within the Mall of San Juan sustained significant damage alongside its neighboring anchor store, Nordstrom. The mall’s owner, Taubman Centers, initiated legal action against Saks for failing to provide an estimated timeline for reopening and for not repairing hurricane-related damages as stipulated in their contractual agreement. While Nordstrom reopened on November 9, 2018, Saks Fifth Avenue ultimately exited The Mall of San Juan after two years of legal proceedings.

Saks–34th Street

File:33rd Street Bridge.jpg
The pedestrian bridge linking Gimbel's to Saks 34th St.

Situated at 1293-1311 Broadway within Herald Square, Saks-34th Street operated as a middle-market department store with a focus on fashion. The seven-story structure, erected in 1902, was the work of Buchman & Fox.[12] This store emerged as a separate entity when Saks & Company transitioned to its upscale location on Fifth Avenue, where Saks Fifth Avenue continues to operate.[13] Bernard F. Gimbel acquired the rebranded Saks-34th Street,[12] integrating it into the New York division of Gimbels (later known as Manhattan Mall). A skywalk spanning 33rd Street connected the second floors of both principal buildings.[14] The facade of Saks-34th Street appears in the 1947 film Miracle on 34th Street during scenes highlighting the Gimbel's flagship. Additional branches were established throughout the greater New York region. The store ceased operations in 1965 due to issues such as inefficient layouts, absence of escalators, unclear branding, and an outdated exterior.[12] Following Gimbels’ closure of this division, the building’s first floor served as a seasonal Christmas annex before being sold to the E. J. Korvettes discount chain.[15][16] After Korvette's collapse, the property was renovated into the Herald Center in 1985. As of 2016, H&M occupies the main retail space following another refurbishment.[17]

Beverly Hills

File:Saks Fifth Avenue store building (Beverly Hills) 2023 July 02.jpg
The original Beverly Hills Saks Fifth Avenue store (2023)

Located at 9600 Wilshire Boulevard, the inaugural Saks Fifth Avenue store in Beverly Hills, California, was designed by Parkinson and Parkinson architects, with interior design by Paul R. Williams.[18][19] Opening its doors in 1938,[20] the store quickly gained success and eventually expanded to nearly 74,000 square feet (6,900 m2), employing approximately 500 staff members.[21] Williams crafted interiors reminiscent of his upscale residential projects, featuring indirect lighting and footlights that accentuated the merchandise.[18] In a 1940 expansion, new departments including furs, corsetry, gifts, and debutante gowns were introduced.[21]

In 2024, the store moved to a neighboring address at 9570 Wilshire Boulevard, with plans by Hudson's Bay Company to convert the original site into a mixed-use development.[22]

Gallery

References

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  6. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  7. ↑ 7.0 7.1 Cite error: Invalid <ref> tag; no text was provided for refs named estar
  8. ↑ 8.0 8.1 8.2 Cite error: Invalid <ref> tag; no text was provided for refs named NYCL-1523
  9. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named biography
  10. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named nyht19240915
  11. ↑ 11.0 11.1 11.2 11.3 11.4 Cite error: Invalid <ref> tag; no text was provided for refs named timeline
  12. ↑ 12.0 12.1 12.2 Cite error: Invalid <ref> tag; no text was provided for refs named nyt
  13. ↑ The New York Times. April 16, 1995.
  14. ↑ Wikimapia.org.
  15. ↑ Time magazine. November 10, 1967.
  16. ↑ TheRealDeal.com. December 14, 2010.
  17. ↑ The Real Deal New York.
  18. ↑ 18.0 18.1 Cite error: Invalid <ref> tag; no text was provided for refs named LAC
  19. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named PCAD
  20. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named TimeOut
  21. ↑ 21.0 21.1 Cite error: Invalid <ref> tag; no text was provided for refs named PWP
  22. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named TimeOut2

External links

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