Saks Incorporated
Encyclopedia
Saks Incorporated founded in Birmingham
, Alabama
in 1998, is headquartered in New York City
, New York
, and is a Fortune 1000
operator of high-end department stores in the United States under the nameplate Saks Fifth Avenue
. Saks evolved from Proffitt's Inc. after Proffitt's changed its name in 1998.
metropolitan area. After going public under the symbol PRFT on the NASDAQ
stock exchange in 1987, Proffitt's Inc. grew by acquiring several department stores. In 1989 the company purchased 18 Hess's
locations in Tennessee, Virginia, Kentucky, and Georgia. From 1994 to 1998, the company added McRae's
, Younkers
, Parisian, Herberger's
, Carson Pirie Scott
, Boston Store
, and Bergner's
chains, as well as additional stores from Loveman's, Parks-Belk, and Brody's
, which were converted into existing store nameplates. After acquiring Parisian, Proffitt's relocated its corporate headquarters to Birmingham, Alabama
from Knoxville in October 1997.
, Saks Holdings, Inc., and subsequently changed its legal name to Saks, Incorporated. The acquisition brought the Saks Fifth Avenue
and Off 5th franchises, as well as Folio, a mail-order business and Saks.com, an online retailer.
The former Saks Fifth Avenue properties became the Saks Fifth Avenue Enterprises division of the company with the larger Birmingham-based department store division becoming the Saks Department Store Group. The company's main-line department store group was made up of its Southern Department Store Group: McRae's
and Proffitt's
,the Northern Department Store Group: Bergner's
, Boston Store
, Carson Pirie Scott
, Herberger's
and Younkers
, the company's Specialty Department Store Group Parisian, and the company's Saks Fifth Avenue Enterprises which included Saks Fifth Avenue
and Off 5th.
In 2001, the company recorded record revenues of $6.6 billion, making it a member of the Fortune 500
and one of the largest operators of department stores in the United States. The company was also a primary sponsor of the Bruno's Memorial Classic golf tournament, now known as the Regions Charity Classic
. The company moved its headquarters to Midtown Manhattan
, New York City in 2007. Several of Sak's management still live in Birmingham.
and McRae's
stores to Belk
for approximately $622 million.
On October 31 that same year, Saks announced that it was selling the 142 stores within its Northern Department Store Group, including Carson Pirie Scott, Bergner's, Younkers, Herberger's, and Boston Store to Bon-Ton Stores, Inc., for $1.1 billion; the transaction was complete as of March 6, 2006.
On August 2, 2006, Saks Incorporated announced that it had agreed to sell its upscale 38 Parisian stores, along with two regional distribution centers and Birmingham corporate headquarters to Belk
, which rebranded them under their own name in the third quarter of 2007.
On November 5, 2008, Saks announced the closure of the Club Libby Lu
chain.
In late August 2010, the UK tabloid Daily Mail
reported that a private equity
buyer was mulling a $1.7 billion takeover bid for Saks Incorporated.
Saks Department Store Group, Birmingham
Birmingham, Alabama
Birmingham is the largest city in Alabama. The city is the county seat of Jefferson County. According to the 2010 United States Census, Birmingham had a population of 212,237. The Birmingham-Hoover Metropolitan Area, in estimate by the U.S...
, Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
in 1998, is headquartered in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, and is a Fortune 1000
Fortune 1000
Fortune 1000 is a reference to a list maintained by the American business magazine Fortune. The list is of the 1000 largest American companies, ranked on revenues alone...
operator of high-end department stores in the United States under the nameplate Saks Fifth Avenue
Saks Fifth Avenue
Saks Fifth Avenue is a luxury American specialty store owned and operated by Saks Fifth Avenue Enterprises , a subsidiary of Saks Incorporated. It competes in the high-end specialty store market in the Upper East Side of Manhattan, i.e. 'the 3 B's' Bergdorf, Barneys, Bloomingdale's and Lord & Taylor...
. Saks evolved from Proffitt's Inc. after Proffitt's changed its name in 1998.
Proffitt's Inc.
Proffitt's Inc. began as five Proffitt's stores in the Knoxville, TennesseeKnoxville, Tennessee
Founded in 1786, Knoxville is the third-largest city in the U.S. state of Tennessee, U.S.A., behind Memphis and Nashville, and is the county seat of Knox County. It is the largest city in East Tennessee, and the second-largest city in the Appalachia region...
metropolitan area. After going public under the symbol PRFT on the NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
stock exchange in 1987, Proffitt's Inc. grew by acquiring several department stores. In 1989 the company purchased 18 Hess's
Hess's
Hess's was a department store chain based in Allentown, Lehigh County, Pennsylvania in the United States.- History :The department store known as Hess Brothers was founded on February 19, 1897, by Charles and Max Hess. Max Hess came to Allentown in 1896 on a business trip and envisioned a...
locations in Tennessee, Virginia, Kentucky, and Georgia. From 1994 to 1998, the company added McRae's
McRae's
McRae's was a mid-range regional department store chain founded and based in Jackson, Mississippi, with locations in Mississippi, Alabama, Louisiana, and Florida. The nameplate was in existence for more than a century.-History:...
, Younkers
Younkers
Younkers is an American department store chain founded as a family-run dry goods business in 1856 in Keokuk, Iowa. The retailer has since evolved over more than 150 years to include a presence in locations throughout Iowa and surrounding states in the Midwest region of the United States...
, Parisian, Herberger's
Herberger's
Herberger's is a regional department store chain founded in 1927 in Osakis, Minnesota, United States. Herberger's operates 41 stores in nine states; more than one third of them are in Minnesota, where the chain maintained its headquarters for much of its history...
, Carson Pirie Scott
Carson Pirie Scott
Carson Pirie Scott & Co., known informally as Carson's, is an upscale chain of department stores that have been in business for over 150 years. Their product price points are targeted to the moderate-to-upscale shopper...
, Boston Store
Boston Store
-History:The Boston Store is mentioned in Theodore Dreiser's "Sister Carrie" published in 1900 and Carl Sandburg's Mamie, part of his 1916 Chicago Poems collection....
, and Bergner's
Bergner's
Bergner's is a major department store in central and northern Illinois, established in 1889 in Peoria, Illinois, and offering mid-line to higher end merchandise in their largest stores. The current flagship store is located in Peoria at The Shoppes at Grande Prairie.-Beginnings:Bergner's was...
chains, as well as additional stores from Loveman's, Parks-Belk, and Brody's
Brody's
Brody Brothers Dry Goods Company, Inc., more commonly referred to as Brody's, was an upscale fashion merchandise chain formerly headquartered in Greenville, North Carolina, with branch stores located in eastern North Carolina...
, which were converted into existing store nameplates. After acquiring Parisian, Proffitt's relocated its corporate headquarters to Birmingham, Alabama
Birmingham, Alabama
Birmingham is the largest city in Alabama. The city is the county seat of Jefferson County. According to the 2010 United States Census, Birmingham had a population of 212,237. The Birmingham-Hoover Metropolitan Area, in estimate by the U.S...
from Knoxville in October 1997.
Saks, Inc.
In September 1998, the company acquired the holding company for the luxury retailer Saks Fifth AvenueSaks Fifth Avenue
Saks Fifth Avenue is a luxury American specialty store owned and operated by Saks Fifth Avenue Enterprises , a subsidiary of Saks Incorporated. It competes in the high-end specialty store market in the Upper East Side of Manhattan, i.e. 'the 3 B's' Bergdorf, Barneys, Bloomingdale's and Lord & Taylor...
, Saks Holdings, Inc., and subsequently changed its legal name to Saks, Incorporated. The acquisition brought the Saks Fifth Avenue
Saks Fifth Avenue
Saks Fifth Avenue is a luxury American specialty store owned and operated by Saks Fifth Avenue Enterprises , a subsidiary of Saks Incorporated. It competes in the high-end specialty store market in the Upper East Side of Manhattan, i.e. 'the 3 B's' Bergdorf, Barneys, Bloomingdale's and Lord & Taylor...
and Off 5th franchises, as well as Folio, a mail-order business and Saks.com, an online retailer.
The former Saks Fifth Avenue properties became the Saks Fifth Avenue Enterprises division of the company with the larger Birmingham-based department store division becoming the Saks Department Store Group. The company's main-line department store group was made up of its Southern Department Store Group: McRae's
McRae's
McRae's was a mid-range regional department store chain founded and based in Jackson, Mississippi, with locations in Mississippi, Alabama, Louisiana, and Florida. The nameplate was in existence for more than a century.-History:...
and Proffitt's
Proffitt's
Proffitt's was a department store chain based in Alcoa, Tennessee. On March 8, 2006, the Proffitt's and McRae's stores were converted into Belk stores. Belk acquired the two chains in July 2005 from Saks Incorporated.-Beginnings:...
,the Northern Department Store Group: Bergner's
Bergner's
Bergner's is a major department store in central and northern Illinois, established in 1889 in Peoria, Illinois, and offering mid-line to higher end merchandise in their largest stores. The current flagship store is located in Peoria at The Shoppes at Grande Prairie.-Beginnings:Bergner's was...
, Boston Store
Boston Store
-History:The Boston Store is mentioned in Theodore Dreiser's "Sister Carrie" published in 1900 and Carl Sandburg's Mamie, part of his 1916 Chicago Poems collection....
, Carson Pirie Scott
Carson Pirie Scott
Carson Pirie Scott & Co., known informally as Carson's, is an upscale chain of department stores that have been in business for over 150 years. Their product price points are targeted to the moderate-to-upscale shopper...
, Herberger's
Herberger's
Herberger's is a regional department store chain founded in 1927 in Osakis, Minnesota, United States. Herberger's operates 41 stores in nine states; more than one third of them are in Minnesota, where the chain maintained its headquarters for much of its history...
and Younkers
Younkers
Younkers is an American department store chain founded as a family-run dry goods business in 1856 in Keokuk, Iowa. The retailer has since evolved over more than 150 years to include a presence in locations throughout Iowa and surrounding states in the Midwest region of the United States...
, the company's Specialty Department Store Group Parisian, and the company's Saks Fifth Avenue Enterprises which included Saks Fifth Avenue
Saks Fifth Avenue
Saks Fifth Avenue is a luxury American specialty store owned and operated by Saks Fifth Avenue Enterprises , a subsidiary of Saks Incorporated. It competes in the high-end specialty store market in the Upper East Side of Manhattan, i.e. 'the 3 B's' Bergdorf, Barneys, Bloomingdale's and Lord & Taylor...
and Off 5th.
In 2001, the company recorded record revenues of $6.6 billion, making it a member of the Fortune 500
Fortune 500
The Fortune 500 is an annual list compiled and published by Fortune magazine that ranks the top 500 U.S. closely held and public corporations as ranked by their gross revenue after adjustments made by Fortune to exclude the impact of excise taxes companies collect. The list includes publicly and...
and one of the largest operators of department stores in the United States. The company was also a primary sponsor of the Bruno's Memorial Classic golf tournament, now known as the Regions Charity Classic
Regions Charity Classic
The Regions Charity Classic, formerly known as the Bruno's Memorial Classic, was an American golf tournament on the Champions Tour. It was held at Ross Bridge Golf Resort and Spa, one of ten courses on the Robert Trent Jones Golf Trail, located in Hoover, Alabama . The tournament was founded in...
. The company moved its headquarters to Midtown Manhattan
Midtown Manhattan
Midtown Manhattan, or simply Midtown, is an area of Manhattan, New York City home to world-famous commercial zones such as Rockefeller Center, Broadway, and Times Square...
, New York City in 2007. Several of Sak's management still live in Birmingham.
Divestments
By 2005, Saks Incorporated began to seek a narrower focus towards the luxury-oriented retail synonymous with its Saks Fifth Avenue stores. The decision resulted in a July 2005 sale of its combined 47 Proffitt'sProffitt's
Proffitt's was a department store chain based in Alcoa, Tennessee. On March 8, 2006, the Proffitt's and McRae's stores were converted into Belk stores. Belk acquired the two chains in July 2005 from Saks Incorporated.-Beginnings:...
and McRae's
McRae's
McRae's was a mid-range regional department store chain founded and based in Jackson, Mississippi, with locations in Mississippi, Alabama, Louisiana, and Florida. The nameplate was in existence for more than a century.-History:...
stores to Belk
Belk
Belk is a department store chain founded in 1888 in Monroe, North Carolina, today part of the Charlotte metropolitan area. After the founding of the first Belk store, the company grew in size and influence throughout the South via the chain in the USA, with its stores primarily located in the...
for approximately $622 million.
On October 31 that same year, Saks announced that it was selling the 142 stores within its Northern Department Store Group, including Carson Pirie Scott, Bergner's, Younkers, Herberger's, and Boston Store to Bon-Ton Stores, Inc., for $1.1 billion; the transaction was complete as of March 6, 2006.
On August 2, 2006, Saks Incorporated announced that it had agreed to sell its upscale 38 Parisian stores, along with two regional distribution centers and Birmingham corporate headquarters to Belk
Belk
Belk is a department store chain founded in 1888 in Monroe, North Carolina, today part of the Charlotte metropolitan area. After the founding of the first Belk store, the company grew in size and influence throughout the South via the chain in the USA, with its stores primarily located in the...
, which rebranded them under their own name in the third quarter of 2007.
On November 5, 2008, Saks announced the closure of the Club Libby Lu
Club Libby Lu
Club Libby Lu was an experiential/experience-based retailer for preteen girls ages five through twelve. Founded by Mary Drolet, a former executive at Claire's and Montgomery Ward, in August 2000, the store chain operated 98 stores in 28 states in the United States before closing in early 2009.Club...
chain.
In late August 2010, the UK tabloid Daily Mail
Daily Mail
The Daily Mail is a British daily middle-market tabloid newspaper owned by the Daily Mail and General Trust. First published in 1896 by Lord Northcliffe, it is the United Kingdom's second biggest-selling daily newspaper after The Sun. Its sister paper The Mail on Sunday was launched in 1982...
reported that a private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
buyer was mulling a $1.7 billion takeover bid for Saks Incorporated.
Saks Department Store Group, BirminghamBirmingham, AlabamaBirmingham is the largest city in Alabama. The city is the county seat of Jefferson County. According to the 2010 United States Census, Birmingham had a population of 212,237. The Birmingham-Hoover Metropolitan Area, in estimate by the U.S...
, AlabamaAlabamaAlabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
- Specialty Department Store Group BirminghamBirmingham, AlabamaBirmingham is the largest city in Alabama. The city is the county seat of Jefferson County. According to the 2010 United States Census, Birmingham had a population of 212,237. The Birmingham-Hoover Metropolitan Area, in estimate by the U.S...
, AlabamaAlabamaAlabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
- Parisian, Inc.
- Northern Department Store Group, MilwaukeeMilwaukee, WisconsinMilwaukee is the largest city in the U.S. state of Wisconsin, the 28th most populous city in the United States and 39th most populous region in the United States. It is the county seat of Milwaukee County and is located on the southwestern shore of Lake Michigan. According to 2010 census data, the...
, WisconsinWisconsinWisconsin is a U.S. state located in the north-central United States and is part of the Midwest. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake Michigan to the east, Michigan to the northeast, and Lake Superior to the north. Wisconsin's capital is...
- Bergner'sBergner'sBergner's is a major department store in central and northern Illinois, established in 1889 in Peoria, Illinois, and offering mid-line to higher end merchandise in their largest stores. The current flagship store is located in Peoria at The Shoppes at Grande Prairie.-Beginnings:Bergner's was...
- Boston StoreBoston Store-History:The Boston Store is mentioned in Theodore Dreiser's "Sister Carrie" published in 1900 and Carl Sandburg's Mamie, part of his 1916 Chicago Poems collection....
- Carson Pirie ScottCarson Pirie ScottCarson Pirie Scott & Co., known informally as Carson's, is an upscale chain of department stores that have been in business for over 150 years. Their product price points are targeted to the moderate-to-upscale shopper...
- Herberger'sHerberger'sHerberger's is a regional department store chain founded in 1927 in Osakis, Minnesota, United States. Herberger's operates 41 stores in nine states; more than one third of them are in Minnesota, where the chain maintained its headquarters for much of its history...
- YounkersYounkersYounkers is an American department store chain founded as a family-run dry goods business in 1856 in Keokuk, Iowa. The retailer has since evolved over more than 150 years to include a presence in locations throughout Iowa and surrounding states in the Midwest region of the United States...
- Bergner's
- Southern Department Store Group, JacksonJackson, MississippiJackson is the capital and the most populous city of the US state of Mississippi. It is one of two county seats of Hinds County ,. The population of the city declined from 184,256 at the 2000 census to 173,514 at the 2010 census...
, MississippiMississippiMississippi is a U.S. state located in the Southern United States. Jackson is the state capital and largest city. The name of the state derives from the Mississippi River, which flows along its western boundary, whose name comes from the Ojibwe word misi-ziibi...
- McRae'sMcRae'sMcRae's was a mid-range regional department store chain founded and based in Jackson, Mississippi, with locations in Mississippi, Alabama, Louisiana, and Florida. The nameplate was in existence for more than a century.-History:...
- Proffitt'sProffitt'sProffitt's was a department store chain based in Alcoa, Tennessee. On March 8, 2006, the Proffitt's and McRae's stores were converted into Belk stores. Belk acquired the two chains in July 2005 from Saks Incorporated.-Beginnings:...
- McRae's
- Tween, Chicago, IllinoisIllinoisIllinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
- Club Libby LuClub Libby LuClub Libby Lu was an experiential/experience-based retailer for preteen girls ages five through twelve. Founded by Mary Drolet, a former executive at Claire's and Montgomery Ward, in August 2000, the store chain operated 98 stores in 28 states in the United States before closing in early 2009.Club...
,
- Club Libby Lu
See also
- Saks Fifth AvenueSaks Fifth AvenueSaks Fifth Avenue is a luxury American specialty store owned and operated by Saks Fifth Avenue Enterprises , a subsidiary of Saks Incorporated. It competes in the high-end specialty store market in the Upper East Side of Manhattan, i.e. 'the 3 B's' Bergdorf, Barneys, Bloomingdale's and Lord & Taylor...
- Parisian
- Proffitt'sProffitt'sProffitt's was a department store chain based in Alcoa, Tennessee. On March 8, 2006, the Proffitt's and McRae's stores were converted into Belk stores. Belk acquired the two chains in July 2005 from Saks Incorporated.-Beginnings:...