What: Saks Fifth Avenue parent HBC is teaming up with WeWork to launch coworking spaces under a new business dubbed "SaksWorks."

Why it is important:  Following the pandemic, offering coworking onsite can monetize retail space and create an ecosystem around stores with a captive audience.

Saks Fifth Avenue owner Hudson’s Bay Co will convert parts of some department stores into co-working spaces managed by WeWork as many employees are negotiating remote-work policies. The new coworking venture will open in five locations around New York, including the Saks Fifth Avenue New York headquarters. The first stores are expected to debut in September.

The coworking initiative brings upmarket facilities such as "stylish work and meeting spaces, artisanal cafés with fresh food and drinks, restaurant space, retail, fitness studios, and scheduled events for members" to coworking spaces geared at urban and suburban regions.

SaksWorks already has 2,000 paying members pre-launch. “A lot of companies today are providing stipends for employees who work remotely to join a workspace, because they need to get out of the home.” Given that one recent McKinsey report estimated that 20% of the workforce might work from home three to five days a week, too, it's a market that appears ripe for the right provider. Sites will close at 5pm, allowing them to be rented for events in the evening. Five companies have already signed up for its Workplace Clubhouse programme.

Wework To Operate Co-Working Spaces in Some Saks Fifth Avenue Stores

HBC partners with WeWork to launch SaksWorks coworking spaces

Office meets retail