Saks Fifth Avenue (colloquially Saks) is an upmarket American department store chain founded in 1867 by Andrew Saks. The first store opened in the F Street shopping district of Washington, D.C., and expanded into Manhattan with its Herald Square store in 1902. Saks was bought by the Gimbels department store chain in 1923 and expanded nationwide during this ownership, and opened its flagship store on Fifth Avenue in 1924. Gimbels and Saks were acquired by Brown & Williamson in 1973, and transferred to sister company Batus Inc. in 1980. While Gimbels was liquidated in 1987, Saks was sold to Investcorp in 1990. Saks Off 5th was established as a Saks clearance store the same year, and has since evolved into an off-price store chain.[6][7] Saks was acquired by Proffitt's, Inc. (renamed Saks, Inc.) in 1998.
Saks, Inc. was acquired by the Hudson's Bay Company in 2013.[8][9] Saks and Saks Off 5th were spun-off into Saks Global, and consequently became sister brands with department stores Bergdorf Goodman and Neiman Marcus, in 2024.[10][11] As of 2026, Saks Fifth Avenue operates one international branch in Almaty, Kazakhstan. Stores previously operated in Canada through the Hudson's Bay Company from 2016 until 2025, in Mexico through a franchising agreement with Grupo Sanborns from 2007 until 2023, and across the Middle East from 2001 until 2025.
Early history
In 1867, brothers Isadore and Andrew Saks established the men's clothing store, A. Saks & Co.[12][13][14] The company occupied a storefront in the Avenue House Hotel building at 517 (300–308) 7th Street, N.W., in what is still Washington's downtown shopping district. Saks offered his goods at one price only and offered refunds on merchandise returns.[15] Saks was also known for its "forceful and interesting, but strictly truthful" newspaper advertising, according to the Washington Evening Star, including a two-page spread, large for that time, in that newspaper on April 4, 1898. In 1887, Saks acquired began building a new location on the site of the old Avenue Hotel Building at 7th and Market Space (now United States Navy Memorial Plaza).[16]
By 1896, Saks and Co. had stores in Norfolk and Richmond, Virginia; New York City; and Indianapolis, in addition to Washington, D.C., where, Saks called itself "Washington's Wonderful Store".
20th century history
Saks opened its New York City Herald Square on 34th Street and Broadway in 1902.[16][18] Andrew Saks ran the New York store as a family business with his brother Isadore, and his sons Horace and William.[19] Following Andrew Saks' death in 1912, his son Horace took over the company's management.[18]
Gimbels ownership
In 1923, Saks & Co. merged with Gimbel Brothers, Inc., owned by a cousin of Horace Saks,[20]
Acquisitions and mergers
Acquisition by Brown & Williamson and BATUS, Inc
In 1973, tobacco conglomerate, Brown & Williamson acquired the Gimbels chain, including Saks Fifth Avenue brand.[33] In 1990, Brown & Williamson, under the name BATUS, sold Saks Fifth Avenue for $1.5 billion.[34]
Acquisition by Investcorp and Proffitt's
Also in 1990, the company launched Saks Off 5th, an outlet store offshoot of the main brand, with 107 stores worldwide by 2016.[35]
In 1998, Proffitt's, Inc., the parent company of Proffitt's and other department stores, acquired Saks Holdings, Inc. Upon completing the acquisition, Proffitt's, Inc., changed its name to Saks, Inc.
21st century history
In 2004, Saks saw an annual sales growth rate of 7.7% on a same-store basis, but was underperforming Neiman Marcus (+17%) and Nordstrom (+10%). In Southern California, analysts said that Saks was "struggling to maintain its cachet" against the two competitors and Bloomingdales. On October 1, Saks announced the closing of eight underperforming stores: Pasadena, Palos Verdes, Mission Viejo, La Jolla and Carmel in California, Garden City NY, Hilton Head SC, and Downtown Minneapolis.[56][57]
In August 2007, the United States Postal Service began an experimental program selling the plus ZIP code extension to businesses. The first company to do so was Saks Fifth Avenue, which received the ZIP code of 10022-7463 ("SHOE", on a U.S. touch-tone keypad) for the eighth-floor shoe department in its flagship Fifth Avenue store.[58]
During the 2007–2009 recession, Saks had to cut prices and profit margins, thus according to Reuters "training shoppers to expect discounts. It took three years before it could start selling at closer to full price".[59]
International expansions
Canada
Canada expansion plans were drafted with the acquisition by HBC in 2013, calling for up to seven Saks stores across the country, of which three eventually opened. In February 2016, it opened a 150000 sqft Saks Fifth Avenue in downtown Toronto, in a section carved out of the building housing the flagship of its namesake department store, Hudson's Bay Company, connected by sky bridge to the largest downtown mall, Eaton Centre.[66] A second Greater Toronto location opened at Sherway Gardens shortly thereafter.[67] And in February 2018, its third Canadian store opened in Calgary at Chinook Centre.[68]
On March 14, 2025, shortly after the bankruptcy and collapse of Hudson's Bay, it was announced that Hudson's Bay would be liquidating and shuttering two of the three Saks Fifth Avenue locations in Canada and all 13 Saks Off 5th locations in Canada.
Controversies
In 2005, vendors filed against Saks alleging unlawful chargebacks. The U.S. Securities and Exchange Commission (SEC) investigated the complaint for years and, according to the New York Times, "exposed a tangle of illicit tactics that let Saks... keep money it owed to clothing makers", inflating Saks' yearly earnings up to 43% and abusively collecting around $30 million from suppliers over seven years.[91] Saks settled with the SEC in 2007, after dismissing three or more executives involved in the fraudulent activities.[91][92]
In 2014, Saks fired transgender employee Leyth Jamal after she was allegedly "belittled by coworkers, forced to use the men's room and repeatedly referred to by male pronouns (he and him)".[93][94] After Jamal submitted a lawsuit for unfair dismissal, the company stated in a motion to dismiss that "it is well settled that transsexuals are not protected by
Notable locations
Saks–34th Street
Saks-34th Street was a fashion-focused middle market department store at 1293-1311 Broadway on Herald Square. The building, built in 1902, had seven stories and was designed by Buchman & Fox.[101] The store was spun off from Saks & Company when that upscale retailer moved to Fifth Avenue, a location that Saks Fifth Avenue maintains to this day.[102] The newly renamed Saks-34th Street was sold to Bernard F. Gimbel,[101] and became a part of the New York division of Gimbels (later Manhattan Mall), and a sky bridge across 33rd Street connected the second floors of both flagship buildings.[103] In the 1947 movie Miracle on 34th Street, the facade of Saks-34th Street is shown in a scene that focuses on the Gimbel's flagship store. The store closed in 1965, citing poor layouts, no escalators, a confused identity, and outdated facade.
Saks Off 5th
Saks Fifth Avenue opened its first Saks Off 5th clearance store in 1990.[111][112] It evolved into an off-price department store chain in its own right, which as of 2023 operated 98 off-price stores across 22 U.S. states and 4 Canadian provinces.[113]
Saks Off 5th expanded to Germany and the Netherlands in 2017 with one store in Germany and two in the Netherlands at launch.[114][115] However the stores in both countries (eight in Germany and two in the Netherlands) were closed in 2019 alongside Hudson's Bay leaving the Netherlands.[116]
Gallery
External links
References
- President of Saks Steps Down. The New York Times. Retrieved on April 3, 2015.^
- Alexander Patino. Saks Fifth Avenue Opens Its 40th Store in Sarasota, FL Saks POV, October 16, 2014, retrieved 2019-12-20^
- International Store Locations