The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Business Wire

Saks Incorporated to Close Saks Fifth Avenue Store in Denver, Colorado

Wednesday, January 05, 2011

Saks Incorporated to Close Saks Fifth Avenue Store in Denver, Colorado12:01 EST Wednesday, January 05, 2011 NEW YORK (Business Wire) -- Retailer Saks Incorporated (NYSE: SKS) (“Saks” or the “Company”), today announced it plans to close its Saks Fifth Avenue store located in the Cherry Creek Mall in Denver, Colorado on March 19, 2011. With the closing of the Denver store, the Company will have closed seven Saks Fifth Avenue stores since July 2010. The Company closed its Saks Fifth Avenue stores in Mission Viejo and San Diego, California; Southampton, New York; Portland, Oregon; Charleston, South Carolina; and Plano, Texas in 2010. Steve Sadove, Chairman and Chief Executive Officer of Saks, commented, “We routinely assess the productivity, profitability, and potential for each store in our portfolio and may conclude a closing is appropriate from time to time. Our strategy is to deploy our resources in our most productive stores and to close underperforming stores, when feasible.” Approximately 100 associates are employed in the Denver Saks Fifth Avenue store. All affected associates either will be offered transfer opportunities or will receive appropriate employment separation packages. Sadove continued, “Store closing decisions are never easy. We are very grateful for our many loyal associates in the Denver store, and we are committed to providing needed assistance to them during this period.” The Denver store opened in 1990 and is approximately 87,000 square feet. The Company expects to realize a net after-tax gain of approximately $6 million in the fourth quarter ending January 29, 2011 related to the store closing. Saks Incorporated currently operates 47 Saks Fifth Avenue stores, 57 Saks Fifth Avenue OFF 5TH stores, and saks.com. 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-lookinginformation 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: thelevel 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 via the 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. Saks IncorporatedJulia Bentley, 865-981-6243www.saksincorporated.com