Dive Brief:
- To broaden its customer reach, Saks Fifth Avenue is expanding its The Fifth Avenue Club to 20 total standalone locations by the end of the year, the retailer announced Thursday.
- With the 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 more in Fort Worth, Texas; St. Petersburg, Florida; and Rancho Santa Fe, California, this summer.
Dive Insight:
Saks Fifth Avenue selected its new Fifth Avenue Club locations by using current customer insights to spot high-potential markets. The company also realized that women’s ready-to-wear shoppers frequent the clubs the most.
To open its clubs, the retailer has teamed up with hospitality companies like Marriott International and its brands including the Ritz-Carlton and St. Regis Hotels and Resorts, where about half of the current locations are based.
“The success of our standalone Fifth Avenue Club suites illustrates that luxury clients are increasingly seeking one-on-one fashion expertise tailored just for them,” Larry Bruce, president of Saks Fifth Avenue stores, said in a statement. “Since the introduction of this concept last year, we are proud to have cultivated a new, engaged client base and a skilled stylist team that delivers one-of-a-kind personal shopping and styling tailored to the unique lifestyles of our customers within each community.”
Beyond expanding its club reach, Saks Fifth Avenue has been boosting its brick-and-mortar presence. Earlier this year, the company opened a flagship location in Beverly Hills, California. The roughly 130,000-square-foot, six-level store features a Fifth Avenue Club on its fifth floor, where shoppers can access 15 private styling suites and receive assistance from Saks stylists.
Though the retailer’s clubs have found popularity among women’s ready-to-wear shoppers, Saks Fifth Avenue has also created spaces catering to men. Last year, the retailer opened a men’s shopping area on the seventh floor of its New York City flagship location, showcasing products from luxury brands like Gucci, Louis Vuitton and Celine.
Meanwhile, the e-commerce business associated with Saks Fifth Avenue this spring secured up to $60 million in incremental liquidity from financial partners Pathlight Capital and Bank of America.
