Saks Fifth Avenue Expands Fifth Avenue Club Standalone Locations

Brief description of the dive:

• To expand its reach, Saks Fifth Avenue is expanding its Fifth Avenue Club to a total of 20 independent locations by the end of the year. the retailer announced on Thursday..
• Through this service, the retailer provides customers with access to personal shopping and styling appointments, trunk shows and other special events.
• The company opened its newest club in Austin, Texas last week and plans to open additional clubs in Fort Worth, Texas, St. Petersburg, Florida and Rancho Santa Fe, California this summer.

Diving Insight:

Saks Fifth Avenue selected new Fifth Avenue Club locations using current customer information to identify high-potential markets. The company also realized that the clubs were most frequently visited by women buying ready-made clothes.

To open its clubs, the retailer has partnered with hospitality companies like Marriott International and its brands, including Ritz-Carlton and St. Regis Hotels and Resorts, where about half of its current locations are located.

“The success of our Fifth Avenue Club self-contained suites demonstrates that luxury shoppers are increasingly seeking personalized fashion expertise tailored specifically for them,” Larry Bruce, president of Saks Fifth Avenue stores, said in a statement. “Since introducing this concept last year, we are proud to have developed a new, engaged customer base and a skilled team of stylists who deliver one-of-a-kind personalized shopping experiences and styling tailored to the unique lifestyles of our customers in each community.”

In addition to expanding its club footprint, Saks Fifth Avenue is increasing its presence in brick-and-mortar locations. Earlier this year, the company opened a flagship location in Beverly HillsCalifornia. The six-level, approximately 130,000-square-foot store features a Fifth Avenue Club on the fifth floor, where customers have access to 15 private styling suites and can count on the assistance of Saks stylists.

While the retailer’s clubs are popular with women’s ready-to-wear shoppers, Saks Fifth Avenue has also created spaces dedicated to men. Last year, a retailer opened a men’s shopping zone on the seventh floor of its flagship New York location, showcasing products from luxury brands such as Gucci, Louis Vuitton and Celine.

Meanwhile, Saks Fifth Avenue’s e-commerce business this spring secured up to $60 million in additional liquidity from financial partners Pathlight Capital and Bank of America.