Once one of the top US department store operators, Saks Incorporated has retrenched to focus on its luxury Saks Fifth Avenue business. The company dismantled an empire of some 375 middle-market department stores under 10 different banners (including Bergner's, Carson Pirie Scott, and Parisian) to stake its future on a dwindling number of Saks Fifth Avenue stores, while growing its off-price sister chain, Off 5th, and its online business. The divestments positioned the department store chain squarely in the luxury market. Founded in 1919 as Profitt's, the firm bought renowned luxury retailer Saks Holdings and adopted the high-dollar Saks name. Saks is owned by Hudson's Bay Company, owner of Lord & Taylor.
Change In Company Type
In November 2013, Saks was acquired by Canada's Hudson's Bay Company for $2.9 billion. Hudson's Bay, which operates north and south of the US-Canada border, paid shareholders $16 per share, representing a 30% premium Saks Inc.'s stock price in late May, when reports emerged of a possible sale of Saks. With the addition of Saks, Hudson's Bay became a formidable global retailer with some 320 locations and about $7 billion in sales.