Saks Fifth Ave free essay sample

Saks Fifth Avenue Saks Fifth Avenue is a department store chain that specializes in upscale merchandise that usually caters to higher income individuals, mostly well-to-do women between the ages of 35 and 55, while at the same time, still being able to offer high-end merchandise at better prices then smaller boutique type stores. Which is the very first reason why I chose this company because it allows a college student like I enjoy luxury merchandise at a reasonable price and it also has been making changes to attract young middle- class shoppers? SFA is near the top of the line in fashion; selling apparel, cosmetics, jewelry, and shoes from top designers such as Burberry, Chanel, and Prada, as well as Saks own private label merchandise. The retail specialty store, Saks Fifth Avenue, has stood as a symbol of American wealth and prestige for most of the twentieth century. The firm was founded in 1902 when Andrew Saks, a street peddler from Philadelphia, opened Saks Company, a mens clothing shop in Washington, D. We will write a custom essay sample on Saks Fifth Ave or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page C. Saks soon expanded his store operations to Richmond, Virginia, Indianapolis, and New York City. For his New York store, he began providing high-end retail market by providing high quality merchandise and offering first-class service. After Saks became president after his fathers death in 1912, Saks made a promise to become the premiere specialty store for New York society. Saks buyers such the globe for unique and fashionable merchandise in order to build the stores reputation. With the shift of New York retail uptown during the 1910s, it became apparent to Saks that for the company to continue its fashionable reputation, it needed a more prestigious address than its present location on34th Street near Herald Square. Horace Saks agreed to merge his retail store chain with Gimbel Brothers department store, which operated stores in Philadelphia; Madison, Wisconsin; and New York. Saks old Herald Square store site was leased to Gimbels and combined with their existing store nearby. On September 15, 1924, Horace Saks and Bernard Gimbel opened Saks Fifth Avenue, making it the largest department store in the world at that time. As business boomed, a cousin of Horace Gimbel, Adam, became his new partner. Soon after Horace died suddenly of septic poisoning in 1925, Adam took over. Adam Gimbel got the credit for building the stores vision and turning it into the national chain store it is. One of Adam Gimbels first acts was to redecorate the flagship store in the Art Moderne style, featured at the 1925 Paris Exposition. Gimbel also broke up the department store into a series of specialty salons, to focus on his clients in a more intimate setting. He filled Saks Fifth Avenue with exclusive merchandise from Europe and the U. S. and established small boutiques that made custom mens shirts and ladies made-to-order dresses. He built the dominant fine shoe business and believed in a large stock, even in difficult economic times, so customers could have a large range of choices. He opened the companys first Resort store in Palm Beach, Florida, becoming the first specialty store to expand nationally. Both chains prospered, with Gimbels and Saks Company supplying all income levels, while Saks Fifth Avenue appealed to the well-heeled. By 1969, the year Adam retired; there were 28 Saks Fifth Avenue stores in 16 states. By 1978 the number of stores reached 30, and in 2004 there were 63 including the off 5th outlet stores. At the beginning of the 21st century, Saks Fifth Avenue faced a number of internal and external challenges to its survival. In 1973 the U. S. British American Tobacco (B. A. T. ) offered to purchase Gimbel Bros. As the company was experiencing financial problems, it was really something to think about. They renovated the Fifth Avenue store in 1978, closed the Gimbel chain in 1986, and planned a $300 million expansion the following year. Saks Fifth Avenue was sold in 1990 for $1. 6 billion. Bahrain-based Investcorp was an international investment group that also owned Gucci Group and Tiffany Co. Phillip B. Miller, formerly of Neiman Marcus from 1977-83 was named CEO of Saks Fifth Avenue. The first Saks Fifth Avenue outlet store opened in Franklin Mills, Pennsylvania, in 1992. In late 1994, Saks opened four former I. Magnin stores in Beverly Hills, Carmel, San Diego and Phoenix. In August 1995 when Saks opened in West Beverly Hills, Saks Fifth Avenue became Beverly Hills largest specialty store, with 260,000 combined square feet between the expanded and renovated Saks East and new Saks West, which houses all mens categories, plus womens special sizes. In August 1997, the company opened a new mens store in San Francisco on Post Street, creating more womens designer selling space in the current San Francisco location. In 1998, Saks Holdings, and Profit’s, merged, taking the company name of Saks Incorporated. In 2000 Saks opened up Saks. com, offering in-store categories, as well as exclusive products which have really increased Saks business. Today it is known for its outstanding selling services and merchandise offerings. To receive the best of European and American designers for men and women, visit one of its 53 stores servicing customers in 25 states. I believe that Saks will only improve for the years to come because its outstanding services will only get better and so will its prices, since there new goal is to also cater to the working class. In 2007, the shoe department of Saks got its own zip code, 10022-SHOE. The department received the new code after the United States Postal Service began selling vanity ZIP codes to businesses. The move marked the first time the Postal Service used letters in a zip code, and the first time a single floor in a building received its own code. Saks Fifth Ave currently holds an approximate of 15,000 employees. The CEO, In January 2002, Stephen I. Sadove, formerly Senior Vice President of Bristol-Myers Squibb Company, joined the management team of Saks Incorporated as Vice Chairman. Sadove is a graduate of Hamilton College and holds an MBA from Harvard Business School. He currently serves on many civic boards, including Harvard Business School Club of New York, Northern Westchester Hospital Foundation, Hamilton College, A Better Chance, and Hazelden New York. Saks management skills contains of unlimited challenges and responsibilities for talented individuals with management potential, which we clearly see that Sadove has with his 25 years of experience in marketing and consumer product career. Over the years Saks has made many changes in its management team by adding Ronald L. Frasch President and Chief Merchandising Officer Michael Brizel Executive Vice President and General Counsel Jennifer de Winter Executive Vice President of Stores Christine A. Morena Executive Vice President of Human Resources Michael Rodgers Executive Vice President of Service Operations and Chief Information Officer Kevin Wills Executive Vice President and Chief Financial Officer Denise Incandela President, Saks Direct and Group Senior Vice President of Saks Fifth Avenue Robert T.