Saks Fifth Avenue to expand discount chain Off 5th in Canada
As you may or may not know, Saks Fifth Avenue is arriving in Canada next spring, and with it, the luxury retailer will push to expand its discount chain Off 5th!
Typically, Saks decides to put their discount stores in different areas then its full price stores in order to prevent each store from taking business from one another, but according to the Globe and Mail, Saks is changing its strategy. The new strategy acknowledges that customers habits have changed, and today’s consumer goes to both high-end and discount stores for different occasions.
In an effort to draw in more customers, Saks is looking for new options for Off 5th stores, including downtown locations or even near regular priced Saks stores. The Globe and Mail interviewed Jerry Storch, chief executive officer of Hudson’s Bay Co., which owns Saks, and he states that “The company used to think that it was important to separate the 5th store from the full-line Saks store as if they were competitive in some fashion,” he said. “Our conclusion is that they’re additive and that they reinforce each other.”
HBC plans up to 25 Off 5th and seven Saks Fifth Avenue stores in Canada. As previously reported by our contributor, Retail Insider, one of the first Off 5th locations will open in Ottawa. We will also see locations in Niagara-on-the-Lake and Vaughan.
Source: The Globe and Mail