Saks Global Streamlines Brand Portfolio, Partners with Amazon for Luxury E-Commerce Push

Saks Global to Cut Up to 600 Brands, Focuses on ‘Controlled Brands’ and Luxury Experiences

In a strategic move to optimize its portfolio, Saks Global has announced plans to slash 500 to 600 brands from its vendor matrix. This represents roughly a 25% reduction, as revealed by the company’s executive chairman, Richard Baker, at the World Retail Congress.

“We had to rightsize our vendor matrix. When we put all these companies together, it turned out we had 2,660 vendors. Too many and terms of many of these vendors weren’t right. We had to reset our expectations for what vendor relationships would look like,” Baker said.

The retailer will focus on building partnerships with “controlled brands” through ventures similar to its 50/50 joint venture with Authentic Brands Group, known as Authentic Luxury Group. Baker believes that increasing the share of controlled brands to 20% of the $9 billion Saks Global business could drive a $400 million boost in margins.

Saks Global has also forged a strategic alliance with Amazon, launching Saks-branded stores on the e-commerce platform in key global markets. “The idea was to create a place on Amazon where the walls were high enough that when you shop at Saks on Amazon, you only see the assortment available at Saks, no low-priced items,” Baker explained.

Beyond fashion, Saks Global is expanding into hospitality and entertainment, with plans for Barneys-themed shows on Amazon and Saks-branded luxury residences in high-growth markets like Bangkok. “A lot of people think we’re just in the clothing business. We’re not. We’re in the hospitality business,” said Jamie Salter, CEO of Authentic Brands Group.

Looking ahead, the company is open to exploring opportunities to partner with other major retailers globally, creating a “Saks Retail Alliance” to further expand the reach of its brands. “The number of brands from ABG that are out there living unbelievable lives outside in the U.S. was eye-opening. And that’s why we think we have so much more opportunity,” Baker added.

Saks Fifth Avenue

Saks Fifth Avenue

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