What: Saks Off 5th is building a more balanced assortment with many more brands and has begun using the SkyPad software solution.

Why is it important: Soaring inflation is driving consumers to shop value-priced retailers and prolonged supply chain issues mean late arriving, out-of-season merchandise that regular-priced retailers will want to unload to off-pricers.

When Hudson’s Bay Co teamed up with investor Insight Partners to establish the Saks Off 5th e-commerce business as a stand-alone operation, Insight invested $200 million into Saks Off 5th. This helped fuel digital growth by adding talent, technology and widening the company’s assortment. The investment enhances digital capabilities, including fulfilment and logistics, support infrastructure, and expanding the assortment.

With 500 added brands in 2020-2021 and Saks Off 5th planning on adding 300 more in 2022, they partnered with the Sky I.T. Group and its business-to-business SaaS platform called SkyPad. This will automate and speed the flow of information between Off 5th and vendors and provide greater insights into selling trends.

The data generated covers unit and dollar performances by style; color; size; retail door and online, across a wide range of time periods, such as week-to-date, month-to-date, and season-to-date. SkyPad provides training and support to retailers and brands.

Saks Off 5th brand and technology growth