What: Saks Fifth Avenue doubles down on the unbundling of its online and offline operations

Why it is important: At a moment when all retailers are racing to achieve efficient and frictionless omnichannel operations, the move is not well understood by analysts. What has Saks figured out that the others did not?

Saks Fifth Avenue’s owner Hudson’s Bay is splitting its off price operations on the same pattern than the full price one, by unbundling the website from store operations. Backed by investor Insight Partners, the goal is to establish the Saks Off 5th e-commerce business as a stand-alone operation, valued at USD 1 billion after the operation.

Saks’ off-price real estate footprint remains wholly owned by HBC and will continue to cooperate with the new off-price e-commerce structure. The move is believed to be a prelude to a public offering according to investors.

Saks Off 5th Splits E-commerce and Retail