) is close to being taken over by Canada's department store chain
Hudson's Bay, according to the
New York Post
reports. Although the deal has not yet been made public, the
media reports that it is already final.
The Canadian chain and owner of Lord & Taylor's
stores, Hudson's Bay has been reported to pay between $17
and $18 a share for the company. Saks Chief Operating Officer
(CEO) Steve Sadove is expected to resign from his post.
Despite Saks' underperformance in the past few quarters, the
high-end luxury chain will add several premium brands to Hudson's
portfolio. Moreover, the deal will bring several real estate
facilities to Hudson's as most of Saks store locations will be
converted into Lord & Taylor's as per the reports.
Saks, meanwhile, will have an easy access to the Canadian
markets through Hudson's already established market in the
region. This is particularly significant as Saks' close
), is planning to expand its presence in Canada in the current
As of the end of its last quarter, Saks operated 42 Saks Fifth
Avenue stores and 66 outlet stores. Although Saks has been
reporting lower than expected sales per square feet, it has
focused on executing its core merchandising, service and
marketing strategies, through various operating initiatives.
Saks has taken initiatives to create more online, mobile and
social digital marketing programs as part of its strategy to
develop integrated multimedia campaigns and also reach out to a
larger customer base. Moreover, Saks has implemented important
systems and process enhancements to strengthen its omni-channel
approach to the business, as it is quickly gaining popularity.
Omni channel retailing enables multiple channels like mobile
internet devices, computers, television, etc. to reach out to
The luxury retailer has reportedly attracted two more bidders
recently - the Real estate investment firm, Starwood Capital
Group LLC, and a Middle Eastern sovereign wealth fund, most
likely from Qatar.
Saks currently holds a Zacks Rank #3 (Hold). Other stocks in
the retail and wholesale sector worth considering include
The Gap Inc.
The Wet Seal Inc.
) carrying a Zacks Rank #1 (Strong Buy).
GAP INC (GPS): Free Stock Analysis Report
NORDSTROM INC (JWN): Free Stock Analysis
SAKS INC (SKS): Free Stock Analysis Report
WET SEAL INC -A (WTSL): Free Stock Analysis
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