Dive Brief:

• Last year, Canadian retail company Hudson Bay Co. bought luxury retailer Saks 5th Avenue for $2.4 billion.

• Hudson’s Bay CEO Richard Baker says that Sak’s will flaunt its tonier side with expensive items in its retail stores, but will also cram its outlet stores with markdowns that appeal to consumers on a budget.

• Sak’s 5th Avenue will expand into Canada, with two new Toronto stores by 2015.

Dive Insight:

Hudson’s Bay Company CEO Richard Baker seems to be clear on burnishing Sak’s Fifth Avenue’s original reputation as a tony destination for shoppers interested in clothing and accessories, like $48,000 Louis Vuitton handbags and $2,000 Christian Louboutin sneakers. Those are price tags many mortal shoppers would only gape at. Perhaps even more interesting is his vision for the Saks outlet stores, which he says have become too much like regular, neat and tidy department stores. He says he wants to mess things up a little there, cramming outlets with goods that have been discounted within reach of more budget-minded consumers. It remains to be seen if a luxury brand can maintain this hi-lo identity, but Baker has overseen the turnaround of Canadian Hudson Bay Co. stores into thriving retailers, so it’s wise to trust his vision.