Luxury retailer Saks Inc. (SKS) is geared to boost sales and has recently launched the official website of its namesake brand – Saks OFF 5TH.
The retailer, which already sells its products through saks.com, launched another e-commerce website – saksoff5th.com – which became operational on Sep 30.
With over 70 stores spread throughout the U.S., Saks OFF 5TH gives the customers the privilege to shop online the same men’s and women’s designer apparel collections as in-store at almost 55% discount. Moreover, the website has collections for the plus-sized women in their Salon Z collections, which are not available at any of the stores of the company. The website also provides services like shipment tracking and SaksFirst Card management to the customers.
Nowadays, an increasing number of retailers are opting for e-commerce as it saves them the chaos involved in discount shopping at their stores. It also attracts new customers and gives the existing customers the convenience to shop whenever they want and from wherever they are. Moreover, results show that customers purchasing online tend to spend more.
E-commerce contributes 5.8% of total retail sales in the U.S. for the second quarter of 2013, according to the U.S. Census Bureau’s quarterly retail trade survey report released on Aug 15. Market research firm, Forrester Research, estimates that this share will go up to 10% by 2017.
Hence, we are encouraged by Saks’ initiative to boost its online sales as it is in tune with the changing trends in the industry. Moreover, it may help the company to turn around its business after suffering several months of poor comps and top-line decline. Saks currently holds a Zacks Rank #4 (Sell).
Other off-price retailers like The TJX Companies Inc. (TJX), Ross Stores (ROST) and Nordstrom Inc. (JWN) are also opting for e-commerce as a measure to boost their sales.
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