The premier luxury department store chain, Saks Fifth Avenue, continues to inspire fashion enthusiasts worldwide. Known for luxurious shopping experiences and high-end fashion, it boasts a storied history stretching over a century. What started as a small family-run business in the heart of Washington, D.C., quickly became a celebrated fashion destination in New York City’s Herald Square before making its iconic mark on Fifth Avenue.
As of 2024, Saks Fifth Avenue carries an extensive array of exclusive brands and designer labels. The high-end retailer showcases top designers, including Aknvas, Akris, Akris punto, Alaïa, Alala, Alberta Ferretti, Alberto Audenino, and Alberto Milani. Here's a detailed look at its historical milestones and ownership changes.
Early Beginnings
- 1867: Andrew Saks, the father of Horace Saks, opened his first store in the F Street shopping district of Washington, D.C. This store would form the foundation for the Saks brand.
- 1902: The Saks family opened a large store in New York City's Herald Square on 34th Street and Broadway. Andrew Saks managed this store alongside his brother Isadore and sons Horace and William.
- 1912: After Andrew Saks' death, his son Horace took over the company's management.
The Rise of Saks Fifth Avenue
- 1923: Saks & Co. merged with Gimbel Brothers, Inc., run by Horace Saks’ cousin, Bernard Gimbel. This merger set the stage for future expansion.
- September 15, 1924: The iconic Saks Fifth Avenue store at 611 Fifth Avenue in Manhattan opened to great fanfare. Designed by architects Starrett & Van Vleck, the building featured a classic architectural style, with limestone, marble, and bronze for its first four storeys.
- 1926-1937: Under the leadership of Adam Gimbel, the company expanded into resort areas, opening seasonal stores in Palm Beach, Atlantic City, and Miami Beach, among others.
- 1938: The legendary Saks Fifth Avenue store in Beverly Hills opened. It became an immediate success and set the tone for future expansions in luxury destinations.
Wartime and Post-War Expansion
- 1940: Saks opened its first urban flagship stores in Beverly Hills and Detroit.
- 1940s-1950s: Post-World War II, Saks expanded further into downtown areas and suburban malls. Notable openings included stores in Pittsburgh, Philadelphia, San Francisco, and various suburban locations.
The Modern Era and Ownership Changes
- 1998: Tennessee-based Proffitt's, Inc., acquired the Saks Fifth Avenue chain and renamed itself Saks, Inc.
- 2000s: Saks expanded its presence internationally, opening stores in the Middle East and Mexico.
- 2013: Hudson's Bay Company (HBC) acquired Saks, Inc., marking another significant change in ownership.
- 2021: HBC strategically separated Saks Fifth Avenue’s e-commerce operations into a standalone company named Saks, in partnership with Insight Partners.
- 2024: Saks Fifth Avenue's parent company, HBC, announced the acquisition of rival retailer Neiman Marcus Group for $2.65 billion.
Saks Fifth Avenue Today
- Revenue and Employment: As of 2023, Saks Fifth Avenue's annual revenue peaked at $1.9 billion, with 12,900 employees. The company has consistently been a leader in luxury retail, using innovative strategies to keep up with market demands.
- Legal Controversies: Saks has had its share of legal challenges, such as the 2005 vendor lawsuit over unlawful chargebacks, the 2014 lawsuit over the unfair dismissal of a transgender employee, and the 2017 dispute following Hurricane Maria damages in Puerto Rico.
- Store Relocations: In 2024, Saks' original Beverly Hills store on Wilshire Boulevard relocated to a new site, marking a significant shift in its physical retail strategy.
