Saks Will Close Stores

Saks will close “a few stores” that are underperforming and have expiring leases, according to CEO Stephen Sadove speaking at a recent investor conference. Saks will not be breaking any leases because of the high costs that process involves, he says.

Sadove didn’t specifically name any stores it will shut, but yesterday the company announced that it will close two stores in Portland, OR’s Pioneer Place Mall, which is operated by General Growth Properties.

Saks hasn’t felt the sales gains that luxury peers such as Nordstrom and others felt during the fourth quarter. Same-store sales during its Q4 fell 4.8%, and the retailer posted a loss.

But analysts actually upgraded Saks recently because its results are improving from more dismal sales. Are these store closings a case of “right sizing” that will eventually make Saks stronger?

ALSO: A.C. Moore’s Sorry Picture: No Gain, More Pain

Advertisements

2 Responses to “Saks Will Close Stores”


  1. 1 Wendy March 24, 2010 at 3:13 pm

    Re Sacs closing stores, I cannot help but wonder if this is the same CEO that decided to close 11 of the smaller stores approximately 5 years ago. In particular, they closed Saks Carmel, one of their best performing per square foot stores, and paid to terminate a recently signed 6 year lease. They wanted to change the image of the stores….good plan!!

    • 2 JR May 11, 2010 at 8:53 pm

      Saks also plans to close the San Diego store at Fashion Valley. This follows the closure of the La Jolla store several years ago, leaving the retailer with no stores in affluent, growing San Diego County. This may be a viable short term strategy but in the long run could cost Saks dearly.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




Subscribe
Bookmark and Share

Archives

March 2010
S M T W T F S
« Feb   Apr »
 123456
78910111213
14151617181920
21222324252627
28293031  

Ian Ritter on Twitter

Error: Twitter did not respond. Please wait a few minutes and refresh this page.

RSS GlobeSt.com’s Top Stories

  • An error has occurred; the feed is probably down. Try again later.

%d bloggers like this: