Following a new minority equity investment by Insight Partners, Saks Fifth Avenue’s e-commerce site is set to become a standalone entity, known simply as Saks.
A partnership between the growth capital firm, which made a 500 million dollar investment in the retailer, and Saks’ owner Hudson’s Bay Company (HBC) has valued the business at two billion dollars and will see it operate separately as SFA, which is still to be wholly owned by HBC.
In a statement, the group’s governor, executive chairman and CEO, Richard Baker, said the move is part of HBC’s plan to redefine the luxury shopping ecosystem, for which the standalone company already holds a strong position in.
Baker added: “Furthermore, this transaction reinforces HBC’s ability to unlock significant value within our company’s assets.”
Marc Metrick, the previous president and CEO of Saks Fifth Avenue, will continue to serve as CEO of Saks and a member of the company’s board of directors. Metrick has been tasked with striking strategic investments to continue the company's evolution and build on its service model.
Additionally, ex-Amazon and Apple exec, Sebastian Gunningham, will also be joining the company’s board of directors and will serve as an advisor to Saks’ e-commerce transition.
While HBC drives the development of the standalone business model, it has said that Saks and SFA will continue to work in conjunction with one another, with Saks Fifth Avenue to remain as the customer-facing name for both businesses.
Saks will lead marketing and merchandising for both businesses while also retaining ownership of Saks Fifth Avenue’s intellectual property.