2010 has not been a good year for the retailer Saks Incorporated that runs 47 Saks Fifth Avenue stores and 57 Saks Fifth Avenue OFF5TH stores apart from saks.com. The luxury brands in general were able to regain some of their peak sales as consumer spending improved during the year. But Saks, it seems were unable to take advantage of the improving situation as they closed down six of their stores.
They have just announced their decision to close their seventh store since July 2010. They plan to close their store located in the Cherry Creek Mall in Denver, Colorado on March 19, 2011. Steve Sadove, Chairman and CEO of Saks tried to pass it off as a routine exercise that is a result of continual assessment of productivity, profitability and potential. The aim, he said, is to deploy our resources in our most productive stores and close down the underperforming stores where feasible.
The Denver store of Saks is spread in a total of 87,000 square feet. Approximately 100 associates are employed in the Denver Saks Fifth Avenue store. Where ever possible they would be offered transfer opportunities. The others will receive separation packages. The company expects to gain $6 million in terms of taxes as a result of the closure of the store.