- Sep 29, 2004
- Reaction score
The first Chinese store will be in Shanghai, it will be the first oversea company-owned store. Two Saks stores in Riyadh and Dubai are operated by liscensee. Will NM, Barneys, Harrod's be next?
Published: April 18, 2006
Saks Fifth Avenue, the luxury goods retailer, is expected to announce today that it will open a store in Shanghai, becoming one of the first American department stores to venture into the world's most populous country, according to people briefed on the matter.
The move, if successful, could open the door for rival department stores, which have struggled for growth in the United States, to finally leap into the Chinese market.
For Saks, which has failed to keep pace with its more profitable rival, Neiman Marcus, entry into China could provide a much-needed avenue for growth.
Saks executives will gather at the retailer's flagship store on Fifth Avenue in New York today to announce plans for the Chinese store.
A Saks spokeswoman declined comment last night.
China has proved a fertile market for American luxury retailers like HermÃ¨s and Cartier, and Shanghai has become a particularly hot market for foreign retailers.
Saks has already shown interest in far-flung international markets. Saks stores have recently opened in Riyadh, Saudi Arabia, and Dubai. Both stores are licensed to use the Saks name but are not operated by the company.
"All the luxury guys are running to China," said Gilbert W. Harrison, the chairman of Financo, a New York investment bank that specializes in retail. "It's natural for one of the department stores to want to open there, too."