Another big split is in the offing for Saks, and it is for off-price business Saks Off 5th as it follows the lead of its full-price namesake.
Parent company Hudson’s Bay Co. is partnering with venture capital firm investor Insight Partners to establish Saks Off 5th’s e-commerce business as a standalone entity. Insight has made a $200M equity investment in Saks Off 5th’s online business, valuing it at approximately $1bn.
The Saks Off 5th store fleet, made up of 105 locations across the United States and Canada, will be a separate operation and be referenced as O5. It will remain wholly owned by HBC.
“With a unique market position and on the heels of explosive growth, we are excited to establish Saks Off 5th as the preeminent digitally native luxury off-price retailer,” stated Richard Baker, HBC’s Governor, Executive Chairman and CEO. “As a true off-price business with a superior merchandise offering, Saks Off 5th has a significant opportunity to capture additional market share by further expanding its digital capabilities.”
Paige Thomas, who joined Saks Off 5th as president and CEO in early 2020, has been named President and CEO of the independent e-commerce business.
“Under Paige’s leadership, Saks Off 5th has a clear runway ahead,” said Baker. “She took the helm just a month before the pandemic and has successfully led the business through a most challenging period, while driving e-commerce growth and enhancing product mix and brand availability.”
