Key functions of the Saks.com, the Saks Fifth Avenue stores known as SFA, and Saks Off 5th companies are being merged under the Saks Global umbrella.
The strategy represents an effort to create efficiencies and will lead to what sources said were about 100 layoffs, or 1 percent of the staff, including the elimination of certain positions.
Legal, technology, operations, technology, operations, people, communications and finance teams from the three companies will be consolidated under the Saks Global corporate umbrella.
Earlier this month, Saks’ owner HBC reached a definitive $2.65 billion deal involving Amazon, Rhône Capital, Salesforce and other investors and lenders, to combine Saks and Neiman Marcus under the same corporation called Saks Global, which is in the process of being formed.
The Saks-Neiman’s deal is pending government approval. The FTC has been requesting information from Saks, which already supplied some to the government, and Saks will have to make a case for the combination, likely pressing how both brands have a greater chance of surviving, and thriving, under one corporate entity rather than as separate companies. Saks will also stress how there’s still plenty of competition in the luxury sector from multi-brand websites, and luxury brands operating their own stores and websites.
As previously reported, Marc Metrick, who has been CEO of Saks.com, will assume role of CEO of Saks Global, overseeing Saks.com, the Saks Fifth Avenue and Saks Off 5th companies. He reports to Richard Baker, executive chairman, Saks Global.
Marc Metrick
“As a result of these changes, we have eliminated certain roles,” Saks indicated in a memo distributed to employees on Tuesday, a copy of which was obtained by WWD. “Decisions that impact team members are never easy, but they are necessary to strengthen our financial performance and support our future success.”
With the consolidation of functions, several executives have been reassigned to Saks Global positions, and will be reporting to Metrick, including Mike Hite, who has been named chief technology officer. He joined Saks in April 2021 as chief information officer, and has been Saks’ chief technology officer since January 2023.
In addition, Rob Brooks becomes chief operating officer, overseeing digital operations, supply chain and logistics, contact centers, sustainability, asset protection, procurement and India business operations. He was president and CEO of Saks Off 5th since March 2023.
Rob Brooks
Kim Miller succeeds Brooks as president of Saks Off 5th. She was CEO of Boutique Brands, which invests in online boutique retailers focused on women’s apparel. Prior to that, Miller was chief marketing officer for Rakuten. Earlier in her career, she worked at Charlotte Russe, Macy’s and HP.
Mara Sirhal, chief merchant for Saks Off 5th has left the offpricer to take on a new role. Now the Off 5th merchandising will report into Miller, and will be led by two Off 5th senior vice presidents and general merchandise managers, Melissa Garrick, for the center core and footwear areas, and Allison Ross, apparel.
Kim Miller
And Sarah Garber has become chief people officer. She was chief people officer for Saks since March 2021.
Jeff Pedersen
Jeff Pedersen has been named chief financial officer, Saks Global, effective Aug. 12. He replaces Vince Phelan, who served as CFO for Saks until leaving the company earlier this year. Pedersen currently serves as CFO for Andela, the world’s largest private marketplace of skilled digital talent, and earlier worked at IBM and Dell.
Also, communications for Saks Global will be led by Nicole Schoenberg, senior vice president, who will continue to report to Emily Essner, chief marketing officer at Saks.
“Today marks a major step forward in the creation of Saks Global, which will allow us to build on the success of our strategic move to separate the stores and e-commerce businesses,” Metrick said in the statement to employees. “Powered by technology and centered on the consumer, establishing Saks Global will accelerate our efforts to innovate the luxury shopping experience for our customers.”
Saks also indicated that Essner, as well as Stephanie Salierno, senior vice president of planning, and Tracy Margolies, chief merchandising officer, “will continue to be part of the Saks organization within Saks Global, reporting to Metrick. “Emily, Stephanie and Tracy’s teams will also continue to partner with SFA as they have been.”
Saks Global, a combination of luxury-oriented retail and real estate assets, includes Saks Fifth Avenue, Saks Off 5th, and will include Neiman Marcus and Bergdorf Goodman if the merger deal is approved. The plan is for each unit continue to operate under their respective brands, according to HBC. Saks Global will include HBC’s U.S. real estate assets and Neiman Marcus Group’s real estate assets, creating a $7 billion portfolio of retail real estate assets.
Also, HBC’s Canadian business, which includes TheBay.com, the Hudson’s Bay department stores, and $2 billion in real estate, will be recapitalized and stay separate from Saks Global, with “significantly reduced leverage and enhanced liquidity,” the company said.
