With Neiman Marcus and Nordstrom scheduled to open their first-ever doors in Manhattan this year, a competition among dialect stores in a swarming landscape stays some-more extreme than ever. Which is because Saks Fifth Avenue’s ongoing $250 million restoration plan during a flagship plcae is essential for removing business vehement about selling in-store.
As partial of a remodeling, a whole belligerent building is now a sprawling purse mart featuring 50 brands that run a progression from a $45 Saks receptacle to an outlandish $49,500 alligator tip hoop bag from The Row. There are also 14 brands new to Saks, including bags from Celine and Bottega Veneta, both of that are underneath new artistic care this year (Hedi Slimane and Daniel Lee, respectively). Exclusive product, a really critical pull for dialect stores, are also enclosed in a selection, with 100 bags being offered only during Saks.
The 53,000-square-foot belligerent building was formerly a beauty dialect (now housed in a second floor) and excellent valuables (which was changed to a reduce turn final year). In addition, a new Instagrammable rainbow-technicolor escalator designed by Rem Koolhaas links a lower, categorical and second floors.
Handbags continue to be an important product difficulty for oppulance brands, interjection to a high margins and full-price sell-throughs. For brands like Gucci and Louis Vuitton, whose purse businesses make adult a poignant apportionment of altogether sales, a clever preference of core and anniversary styles sojourn a tip motorist for a bottom line. And for dialect stores like Saks, the contentment of purse styles and selections creates for an appealing tender for new and returning customers.
However, expansion in a oppulance purse zone has stalled somewhat, with Euromonitor International stating a 2.6% arise in U.S. sell sales final year to $7.56 billion, down from 9.2% expansion in 2014. Regardless, Saks is betting that a new purse mart will perform good and get shoppers in a store rather than buy all online (or on a resale market).
Whether a a latest totes from Balenciaga or classical satchels from Miu Miu, a new belligerent building is positioned to contest opposite identical offerings from Bergdorf Goodman and Barneys New York. But rather than only concentration on product, Saks is anticipating to captivate shoppers with a experience-factor so many retailers are articulate about. For example, a new L’Avenue grill (the initial outward of Paris) non-stop a doors in Saks recently.
Saks began a costly renovate in 2015 and is approaching to be completed 2021. With Manhattan apropos a bridgehead for so many opposition dialect stores, Saks is anticipating the finished project will make it one of a premier oppulance destinations in a world. So far, it looks to be holding a right stairs in doing so.