Headlines

Saks Trims Losses

Retailer kept inventory lean to avoid clearance selling

Published

22 years ago

August 22, 2002

admin1

Saks Inc. (Birmingham, Ala.) announced that aggressive cost- and inventory-control measures had narrowed its loss in the second quarter, beating Wall Street expectations.

The department store operator, which operates Saks Fifth Avenue and the Saks Department Store Division (Parisian, Younkers, Carson Pirie Scott, McRae's, Proffitt's, Herberger's, Boston Store and Bergner's), recorded a loss of $20.4 million for the three months ended Aug. 3, 2002. That compares with a loss of $58.4 million a year ago.

Sales dropped 1.7 percent overall, and were down 4.7 percent for Saks Fifth Avenue and Saks Off 5th outlet stores. Same-store sales at the company's other department stores rose 0.4 percent.

Saks said it kept fewer items on the shelves, to avoid having leftover merchandise it would have to clear out through price reductions.

MasterClass: ‘Re-Sparkling’ Retail: Using Store Design to Build Trust, Faith and Brand Loyalty

HOW CAN WE EMPOWER and inspire senior leaders to see design as an investment for future retail growth? This session, led by retail design expert Ian Johnston from Quinine Design, explores how physical stores remain unmatched in the ability to build trust, faith, and loyalty with your customers, ultimately driving shareholder value.

Presented by:
Ian Johnston
Founder and Creative Director, Quinine Design