US' Saks Off 5th e-retail business to turn into standalone entity

Insight Partners has led a $200 million equity investment in Saks Off 5th’s e-commerce business, valuing it at around $1 billion.

Paige Thomas has been appointed president and CEO of the new digitally native Saks Off 5th business. Thomas will also serve as a member of the board. In this position, she will guide the future direction of the business and focus investments on enhancing omnichannel capabilities, including fulfilment and logistics improvements, supporting infrastructure and delivering a best-in-class customer experience across all channels, the companies said in a joint press release.

Rob Brooks, who previously served as chief customer officer for Saks Off 5th, has been named president of O5. O5 will operate the brick and mortar Saks Off 5th stores business like a franchise model. Brooks will report directly to HBC’s governor, executive chairman and CEO, Richard Baker and lead a dedicated team responsible for supporting and further enhancing the overall omnichannel experience.

“With a unique market position and on the heels of explosive growth, we are excited to establish Saks Off 5th as the preeminent digitally native luxury off-price retailer. As a true off-price business with a superior merchandise offering, Saks Off 5th has a significant opportunity to capture additional market share by further expanding its digital capabilities,” said Baker.

“There is significant untapped potential within Saks Off 5th’s digital business and with the right investments to support our overall customer experience we will drive exponential growth. Saks Off 5th provides a compelling assortment of brands to fashion-seeking customers at the best prices. We will continue to deliver on our brand promise, while introducing an elevated experience through improved digital capabilities, new partnerships and an expanded product offering,” said Thomas.

“There is a category-making growth opportunity within luxury off-price, and we believe Saks Off 5th has carved out a differentiated position in an underserved market. We’ve been consistently impressed by the Saks Off 5th management team and their focus on developing an unparalleled e-commerce experience,” said Deven Parekh, Insight Partners’ managing director.

Stores will continue to be an integral customer touchpoint for the brand. Returns, exchanges and SaksFirst credit cards will continue to be accepted both online and in stores, the release said.

Insight Partners is joining other significant investors in HBC and Saks Off 5th, including Rhône and its affiliates, a leading investor in HBC since 2017.

ALCHEMPro News Desk (KD)