Saks Talks Private Brands At Off 5th

Company shows 25 percent private label penetration at chain

February 26, 2013

Saks Incorporated said Tuesday that earnings for its fiscal 2012 were flat from a year earlier, with same-store sales rising 3.2 percent.

The company also took the time to discuss its private label plans and successes.

“We see opportunity to drive sales in our existing Off 5th stores by growing our pillar brands, adding new categories of merchandise and further expanding our private brands, which now comprise about 25 percent of the business,” CEO Stephen Sadove told analysts on a conference call, according to transcripts from Seeking Alpha.

Sadove later said there were financial gains to be made by concentrating the company’s focus on private label.

“As we look towards development of exclusive brands, our own brand, we look at the editing of the portfolio, we look at the hold and flow initiatives,” he said, according to Seeking Alpha transcripts. “All of these are supportive of what we see as gross margin opportunity.”

Chief Merchandising Office Ronald Frasch said on the call that a balanced portfolio was beneficial to sales for Saks.

“(W)e are continuing to focus on increasing our overall assortment of differentiated and exclusive merchandise,” he said. “Our private brands remain a part of our long-term differentiation strategy and are a good complement to our branded offerings.” 

Did you enjoy this article? Click here to subscribe to Private Label Buyer.

Recent Articles by Chris Freeman

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

September 2014 New Food Products

This month's new food products include cane sugars, barbeque sauce, condiments in squeeze bottles, cinnamon snack seasoning, and jalapeno tzatziki, ice cream, herb toasts, corn puffs, instant coffee, coconut water, and a water enhancer.

Podcasts

Coming with a clear, comprehensive plan was the key to success for Longo Brothers Fruit Markets when the grocer decided to roll out a two-tier private label strategy, Jenny Longo and Robert Koss tell PLBuyer editor Chris Freeman in this podcast.

More Podcasts

Private Label Buyer Magazine

PLB September 2014 cover

September 2014

The September 2014 issue of Private Label Buyer includes a convenience channel update, as well as category insights on frozen store brand trends and health and beauty items. Check it out today!

Table Of Contents Subscribe

Private Label Segments

Which segment of private label will see the biggest growth over the next year?
View Results Poll Archive

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

PLB Marketplace

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40pxgoogle+ icon 40px