HBC also owns Lord & Taylor. The move, according to HBC, will create a leading North American retailer addressing a broad consumer spectrum across the luxury, mid-tier and outlet retail sectors. The combined company will operate 320 stores, including 179 full-line department stores, 72 outlet stores and 69 home stores in prime retail locations throughout the U.S. and Canada, along with three e-commerce sites.
HBC will take Saks into Canada through full-line, outlet and online formats, building upon Canada’s position as saks.com’s largest international ship-to market. The combination will maximize existing e-commerce platforms across all three banners to enhance customers’ shopping experience. HBC also plans to continue OFF 5TH's expansion throughout the US, the firm said.
“This exciting portfolio of three iconic brands creates one of North America’s premier fashion retailers,” stated Richard Baker, HBC’s chairman and CEO. “I’ve had a long connection with Saks over the years, and am thrilled to bring one of the world's most recognized luxury retailers into the HBC family. With the addition of Saks, HBC will offer consumers an unprecedented range of retailing categories and shopping experiences. This acquisition will increase our growth potential both in the U.S. and Canada, generate significant efficiencies of scale, add to our powerful real estate portfolio and deliver substantial value to our shareholders.”
Steve Sadove, chairman and CEO of Saks, commented, “We believe this transaction delivers compelling value to our shareholders and that Saks Fifth Avenue is an excellent fit within the HBC organization. We also believe that HBC recognizes the tremendous value of our people, our real estate, our customer and vendor relationships, and most importantly the power and potential of our iconic brand.”