What: A message from the CEO to brands to update on the plan execution

Why it is important:  The plan presented by Saks and later Hudson Bay surprised many analysts, as it decided to split into separate companies online and offline operations, at a moment when omnichannel is all about an increased cooperation between both channels.

Mark Metrick, CEO of Saks Fifth Avenue, sent a letter to its brand partners to reassure them on the fact that the plan, decided 6 months ago, was going well according to expectation. It was indeed decided and acted recently to split the company in 2: saksfifthavenue.com (online operations) and SFA, which owns and operates the Saks 40-wide store fleet.

This move was also followed later on by Hudson’s Bay Company and the outlet company Off 5th.

Given that the Hudson’s Bay Company does not report its quarterly earnings, Metrick also provided its suppliers with some financial information about the state of the business: on Q2, online sales increased by +82%, with a traffic up +80% (both compared to 2019), while comparable sales in stores increased +29% (attributed to an increased productivity among style advisers). A third fulfilment centre for the online business has been also announced.

CEO Letter to Vendors The Reengineered Saks Fifth Avenue Is ‘Winning’