Canada-based retail business group HBC has announced the launch of American luxury retailer Saks Fifth Avenue’s (SFA) e-commerce business as a standalone entity, Saks.
The development comes after HBC raised a $500m minority equity investment from growth capital investor Insight Partners, valuing Saks at $2bn.
The retailer’s 40-store fleet will operate separately as SFA and be a wholly owned company of HBC.
Saks will make strategic investments to advance and expand its online experience, which will feature a hybrid retail and marketplace platform.
It will lead marketing and merchandising across both businesses while the stores will fulfil the functions of Saks, including Buy Online, Pick Up In-Store, exchanges, returns and alterations.
HBC governor, executive chairman and CEO Richard Baker said: “With this move, we are redefining the luxury shopping ecosystem, supercharged by an enviable customer base, incomparable brand equity, long-standing relationships with top designers and exquisite stores in top markets across North America.
“The team’s fashion expertise, combined with a renewed digital focus, will provide customers with an unmatched shopping experience. In addition, this transaction reinforces HBC’s ability to unlock significant value within our company’s assets.
“We are delighted to partner with Insight Partners, a firm globally recognised for its ability to scale Internet, software and e-commerce leaders, to unleash Saks’ full potential as the preeminent luxury e-commerce platform.”
Following the creation, Saks Fifth Avenue’s previous president and CEO Marc Metrick will serve as CEO of Saks and a member of the company’s board of directors.