What: Saks Fifth Avenue wants t position itself as a major luxury player catering to the top 1%

Why it is important: Amazon’s tech capabilities might be extremely helpful in the context of the merger with Neiman Marcus

Amid growing cost of living concerns in the U.S., the luxury retail market remains robust with an expected revenue of USD 368.9 billion in 2024, driven by a 3.22% annual growth rate through 2028. Luxury fashion will dominate the market, projected at USD 115.9 billion in 2024, according to Statista.

Saks Fifth Avenue is capitalizing on this growth by expanding its personalized shopping service, the Fifth Avenue Club, now located in high-end hotels and resorts in states like Georgia, Colorado, Minnesota, and Texas. This expansion caters to the 1% of shoppers with unique, high-touch experiences, combining personal styling and local community integration. President Larry Bruce highlighted the success in engaging new clients and plans further expansion.

In response to the consumer shift back to physical stores post-pandemic, Saks aims to enhance the shopping experience with sensory engagement and personalized services, boosting customer loyalty and reducing returns. Competitors like Mytheresa are also targeting this affluent demographic, focusing on time efficiency and curated selections to simplify the shopping process.

Emerging in this competitive space is In-Seam, an e-commerce platform founded in 2020, which offers personal shoppers a broad selection from over 100 luxury brands, aiming for US$300 million in annual sales by 2027. This indicates a strong market for personalized and experiential luxury retail that meets the high expectations of the wealthy consumer base.

A look at Saks Fifth Avenue Club VIP program