Press release from Business Wire
Saks Incorporated Announces 2nd Saks Fifth Avenue in Mexico City
Thursday, October 21, 2010
Saks Incorporated Announces 2nd Saks Fifth Avenue in Mexico City09:30 EDT Thursday, October 21, 2010 NEW YORK (Business Wire) -- Retailer Saks Incorporated (NYSE: SKS) (the “Company”) announced it has expanded its presence in Mexico City by opening its second licensed Saks Fifth Avenue store there today. The two-level, approximate 82,500 square foot store is located in Plaza Carso, a major new mixed-use development in Mexico City's rapidly growing luxury zone of Polanco. The Plaza Carso development includes luxury residential and commercial towers, a unique cultural space accommodating two of the most important museums in Latin America, a hotel, a performing arts theatre, and an upscale shopping center. Saks Fifth Avenue has operated a tri-level, 150,000 square foot store in the Santa Fe Shopping Center, an upscale development in Mexico City, since November 2007. Both Mexico City Saks Fifth Avenue stores are congruent with the Saks Fifth Avenue stores in the United States in product and service, while catering to local tastes and preferences. The stores include distinctive offerings from established and emerging American and international designers and present sought-after collections of fine designer apparel for women and men as well as shoes, jewelry, accessories, handbags, fragrances and cosmetics, intimate apparel, bridal, and select gift items. Saks Fifth Avenue is known for its extraordinary personalized customer service, and the new store will offer an ongoing calendar of special events such as fashion shows and personal appearances by designers. The Plaza Carso Saks Fifth Avenue store reflects a modern, streamlined design. Some of the features of the store include floor-to-ceiling perimeter glass panels which allow for natural light, a swirling curved staircase made of metal and stone, luxury fitting rooms, and an exclusive valet entrance. In 2007, the Company entered into a license agreement with Operadora de Tiendas Internacionales, S. A. de C. V. and Prestadora de Servicios OTI, S.A. de C.V., wholly owned affiliates of Grupo Sanborns, S. A. de C. V. (“Grupo Sanborns”) to locate and develop appropriate sites for potential Saks Fifth Avenue stores in Mexico. Grupo Sanborns owns and operates both Mexico City stores under the license agreement with Saks Fifth Avenue. Stephen I. Sadove, Chairman and Chief Executive Officer of Saks Incorporated, commented, “We are so excited to bring a second Saks Fifth Avenue store to Mexico City, especially to the new Plaza Carso center. Since opening our first store in Mexico City in 2007, Grupo Sanborns has been a great partner with Saks to deliver a differentiated, world-class selection of luxury brands and services to the residents of Mexico City. This second location will solidify Saks Fifth Avenue's presence there.” Carlos Hajj Aboumrad, CEO of Operadora de Tiendas Internacionales, commented, “We are pleased to open our second Saks Fifth Avenue Licensed store in Mexico City at Plaza Carso. We are committed to growing the Saks Fifth Avenue brand in Mexico and with this new store, we will build on the strength of our first Saks Fifth Avenue store which opened in Santa Fe, Mexico City in 2007. We look forward to offering Saks Fifth Avenue customers in Polanco the best selection of luxury fashion merchandise and superior service.” About the CompaniesSaks Incorporated currently operates Saks Fifth Avenue, which consists of 48 Saks Fifth Avenue stores, 56 Saks Fifth Avenue OFF 5TH stores, and saks.com. Founded in 1924 with the opening of its Fifth Avenue, New York flagship store – which continues today to be the Company's landmark store – Saks Fifth Avenue has grown to 48 stores throughout the United States, complemented by licensed stores in Mexico City, Mexico; Riyadh and Jeddah, Saudi Arabia; Dubai, U.A.E.; and Manama, Bahrain. Saks Fifth Avenue is one of the most recognized luxury retail brands in the world and has key relationships with the leading fashion houses including Giorgio Armani, Chanel, Louis Vuitton, Dolce and Gabbana, Salvatore Ferragamo, Gucci, Donna Karan, Calvin Klein, Ralph Lauren, Judith Leiber, Prada, Escada, Carolina Herrera, Oscar de la Renta, St. John, Yves St. Laurent, TOD'S, Jimmy Choo, Christian Louboutin, Ermenegildo Zegna, Theory, Cartier, David Yurman, Elie Tahari, Tory Burch, Akris, Burberry, and Max Mara, among many others. Mexico-based Grupo Sanborns is subsidiary of Grupo Carso S.A. de C.V. (“Grupo Carso”), which controls and operates a diversified group of companies related to the retail, industrial, and consumer business. Through Grupo Sanborns, Grupo Carso operates several retail formats such as Sanborns, Sanborns Cafe, Mixup music stores, and Sears and Dorians department stores as well as several specialized stores including Pier 1, among others, and owns and operates some of the most important shopping centers in Mexico City. Forward-looking InformationThe information contained in this press release that addresses future results or expectations is considered “forward-looking” information within the definition of the Federal securities laws.Forward-looking information in this document can be identified through the use of words such as “may,” “will,” “intend,” “plan,” “project,” “expect,” “anticipate,” “should,” “would,” “believe,” “estimate,” “contemplate,” “possible,” and “point.” The forward-looking information is premised on many factors, some of which are outlined below.Actual consolidated results might differ materially from projected forward-looking information.The forward-looking information and statements are or may be based on a series of projections and estimates and involve risks and uncertainties.These risks and uncertainties include such factors as: the level of consumer spending for luxury apparel and other merchandise carried by the Company and its ability to respond quickly to consumer trends; macroeconomic conditions and their effect on consumer spending; the Company's ability to secure adequate financing; adequate and stable sources of merchandise; the competitive pricing environment within the retail sector; the effectiveness of planned advertising, marketing, and promotional campaigns; favorable customer response to relationship marketing efforts of proprietary credit card loyalty programs; appropriate inventory management; effective expense control; successful operation of the Company's proprietary credit card strategic alliance with HSBC Bank Nevada, N.A.; geo-political risks; the performance of the financial markets; changes in interest rates; and fluctuations in foreign currency and exchange rates.For additional information regarding these and other risk factors, please refer to the Company's filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended January 30, 2010, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K, which may be accessed viathe Internet at www.sec.gov.The Company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events, or otherwise.