The New York department store group is poised to open the 26,400 sq ft new-look store on April 15 in Orlando, Florida, replacing its existing 21,000 sq ft outlet there.
Saks said its prototype for Off 5th will be “luxury in a loft environment” and that the design will maximise flexibility and enable rapid remerchandising. It will provide a model for its 47 other outlet stores.
Off 5th president Robert Wallstrom said: “A lot of thought and care went into the design of this store. We believe there is a meaningful new store growth opportunity for Off 5th.”
US industry observers believe the move signals a change of strategy by the luxury group in the face of faltering consumer demand in department stores.
However, according to US reports, Icelandic investor Baugur, which has a 9 per cent stake in Saks, is unfazed by the dampened US economy.
The Wall Street Journal reported that Baugur is ready to make a move on the retailer, possibly following its full-year results in February. It has hired investment bankers at Financo in New York and is expected to offer no more than US$23 (£17) a share.
In October, Baugur said it may make a joint bid for the department store group with Landmark Group of Dubai.
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