• Home
  • News
  • Retail
  • Saks Off 5th considers expansion to Europe

Saks Off 5th considers expansion to Europe

By May-Anne Oltmans

loading...

Scroll down to read more

Retail

Off 5th, Saks Fifth Avenue´s off-price business, is seemingly doing very well in the United States. As the acquisition of the Galeria Holding by Saks´s parent company Hudson Bay´s Co (HBC) nears completion, the company is eyeing opportunities for expanding to Europe.

“We intend on bringing Off 5th to Germany,” said HBC´s CEO Storch in an interview with Women´s Wear Daily (WWD). The announcement of the acquisition of the German chain Galeria Kaufhof and the Belgian chain Galeria Inno for 3,3 billion dollars (2,2 billion pounds) came in June 2015. “With the acquisition, we will have the largest department store chains in Germany and Belgium and an established foothold in Europe to grow Saks Fifth Avenue and Saks Off 5th. We can have up to forty Off 5th stores in Europe,” said Storch. The CEO did not disclose any information on the number of Saks stores that HBC plans to open in Europe.

According to Storch, the off-price segment holds a lot of growth potential for Saks. “It is growing faster than the retail industry,” believes Storch. HBC plans to open 15 to 20 Off 5th stores in the United States in the coming year. In total there are currently over 90 Off 5th stores.

Galeria Kaufhof has 103 stores in Germany, which generate a revenue of 2,9 billion euros (3,1 billion dollars). Galeria Inno has 16 department stores in Belgium, resulting in a revenue which equals 400.000 euros (426.500 dollars). The exact date at which the acquisition of the Galeria Holding will be finalized, has yet to be announced.

Galeria Inno
Galeria Kaufhof
Off 5th
Saks Fifth Avenue