What: Saks.com will test the marketplace format in an effort to accelerate growth and expand its offerings to customers.

Why is it important: In creating a marketplace, Saks will be challenged to determine what brands and products, not previously carried, will resonate with the retailer’s audience and will buoy, not detract from, the Saks luxury image.

Last March, the parent HBC split the Saks Fifth Avenue stores and saks.com operations into stand-alone companies. Changes occurred since then, including launching everyday free shipping and free returns, advancing the digital stylist program, expanding Saks Limitless, an invitation-only program providing top saks.com shoppers with exclusive benefits and perks, and launching Saks Live, a livestream events platform. Marketing online expenses also ramped up to acquire new customers and to increase traffic.

Saks stores continue to work together with e-commerce to deliver an easy shopping experience, providing buy online, pick up in store service, and handle exchanges, returns and alterations.

Saks Fifth Avenue had a strong Q1 performance across all channels with total sales up significantly over 2019. Specific to the e-commerce business, Saks’ gross merchandising value exceeded expectations, up double digits versus 2019, with signs of an ongoing upward trajectory. Since March, site traffic is up 79% and new customers are up 84% to 2019. Saks stores total sales were reportedly higher than 2019.

To strengthen the dot-com’s capital structure, two financial steps — a syndicated USD 350 million asset-based, five-year revolving credit facility and a USD 115 million senior secured term loan — were completed to ensure liquidity and flexibility to drive growth.

Saks.com To Test a Marketplace, Investments Ahead