Saks Fifth Ave. is known around the world as “the place to shop” in New York City. Saks Inc. agreed to sell itself to Hudson’s Bay Co., which is the Canadian parent of Lord & Taylor. The offer was for $2.4 billion, and was made to bring more luxury stores to North America.
This acquisition will combine Hudson’s Bay, Lord & Taylor and Saks Fifth Ave. Lord & Taylor is pretty pricey, and is similar to stores like Macy’s and Nordstorms. Saks, however, has brands like Gucci and Chanel, which can go for thousands.
According to Richard Baker, Hudson’s Bay Co. Chairman and CEO, the goal is to bring these luxury brands to Canada. They plan on opening up several Saks Fifth Ave. stores and created a website specifically for Canadians.
“With the addition of Saks, (Hudson’s Bay) will offer consumers an unprecedented range of retailing categories and shopping experiences,” Baker said.
In the latest fiscal year, Saks reported annual revenue of $3.15 billion. This is about 4% more than the previous year. Saks’ net income fell nearly 16 percent to $62.8 million in the latest year.
“We are excited about what this opportunity and being part of a much larger enterprise can mean for the future of the Saks Fifth Avenue brand,” Saks Chairman and CEO Steve Sadove said in a statement.