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Bon voyage, motherfuckers
Saks Fifth Avenue will close less than 20 stores over time, representing “more than a handful” of the 53 full-line units in the luxury chain, said Stephen I. Sadove, chairman and chief executive officer of Saks Inc.
Last month, Saks revealed the closing of its two Portland, Ore., stores, triggering speculation about how many others could shutter based on their lack of profitability or potential to produce profits and leases coming due. In the recession, store closings have intensified for retailers in general. In Portland, Saks expects to shut its 23,000-square-foot men’s store in the Pioneer Place Mall on April 25 and the 60,000-square-foot main store in the center by July 31.
Saks owns 29 of its full-line stores, including the Fifth Avenue flagship, and there are no mortgages or liens. Sadove downplayed the possibility of selling or “monetizing” any sites. “I’m not saying we would never do it, but it’s not high on our priority list. If you do a sale leaseback, it’s more rent.” He added he is pleased with the company’s capital structure, suggesting there’s no urgency to raise money, and added there are tax consequences to selling real estate.
Moving from stores to merchandise, Sadove disclosed the percentage of Saks’ exclusive products could represent north of 20 percent of the franchise, from the current 5 to 10 percent. That includes private label, as well as brands made just for Saks by European designers.
Last month, Saks revealed the closing of its two Portland, Ore., stores, triggering speculation about how many others could shutter based on their lack of profitability or potential to produce profits and leases coming due. In the recession, store closings have intensified for retailers in general. In Portland, Saks expects to shut its 23,000-square-foot men’s store in the Pioneer Place Mall on April 25 and the 60,000-square-foot main store in the center by July 31.
Saks owns 29 of its full-line stores, including the Fifth Avenue flagship, and there are no mortgages or liens. Sadove downplayed the possibility of selling or “monetizing” any sites. “I’m not saying we would never do it, but it’s not high on our priority list. If you do a sale leaseback, it’s more rent.” He added he is pleased with the company’s capital structure, suggesting there’s no urgency to raise money, and added there are tax consequences to selling real estate.
Moving from stores to merchandise, Sadove disclosed the percentage of Saks’ exclusive products could represent north of 20 percent of the franchise, from the current 5 to 10 percent. That includes private label, as well as brands made just for Saks by European designers.
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