Saks Talks Private Brands At Off 5th
Company shows 25 percent private label penetration at chain
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.”