According to the Globe and Mail, the deal between Saks Fifth Avenue and Hudson’s Bay Company (which also owns Saks rival, Lord & Taylor) was finalized Sunday evening at $2.9 billion. This acquisition could mean that Saks, which has long been rumoured to make its way up to Canada, may finally come into fruition, as will its outlet store, OFF 5TH.
Saks Fifth Avenue flagship in Manhattan
It’s quite possible that here in Canada, several Hudson’s Bay stores will at least be partially converted into Saks. As to which ones, it’s impossible to tell. Though the Queen Street store in Toronto is definitely an excellent candidate, it is unlikely the location will be rebranded – HBC will still be maintaining its own brand and the Queen Street store is a flagship. Another option is, of course, the Bay store at the corner of Yonge and Bloor (Retail Insider seems to think this would be the top choice, according to one of their tweets and would give Holt Renfrew, just one block west, a run for its money). However, that location not exactly the most aesthetically pleasing, both inside and out (and renovations to the store may be difficult and costly to do). Not exactly the best thing for a brand that is marketed as luxurious. Yorkdale is an unlikely possibility, since Saks should really have a more urban presence and the mall does not really need to have four department store anchors. But with Holts moving out of Sherway Gardens, that space might be worth looking at.
Of course, there are other locations worth looking at. First is the building currently occupied by Stollery’s. While the clothing store is more than a century old, I’ve wondered for years who exactly their target market is. The store just seems very out of place in the area. Additional floors will need to be added, since Stollery’s does not have the square footage needed for a department store. And with downtown Yonge Street supposedly redeveloping, leasing space south of Bloor can be a great way to give the area the makeover it desperately needs. Personally, I’d love to see Saks move into College Park, the former home to Eaton’s, but converting the space back into a department store would be even more expensive than giving the Bay at Yonge and Bloor a facelift. Or maybe they’d be a bit more “radical” and open in, say, the Yonge and Eglinton area. Hot developments going up there.
As for whether I think this is just another step into the “Americanization” of Canada in terms of brands, I’m not sure if it is really an issue in this case. This is, after all, an acquisition of a luxury department store which sells brands from all over the world. And very likely, the Canadian Saks stores will carry Canadian designers, including those who are based in this country (VAWK and Lucian Matis at Saks, anyone?). Canada does need more luxury competition. Holts can’t be the only luxury department store in the country.
What do you think of the Hudson’s Bay acquisition? Where would you like to see Saks open?
Image credit: David Shankbone, Wikicommons
