Saks Fifth Avenue recently released first quarter financials indicating 14.4% same store sales growth — a huge gain for a retailer that’s been in the biz for decades. Saks attributed the growth and their future strategy for success around their merchandise assortment in a Business Week article.
The gist of the article…
“In a key measure for retailers, sales at stores that had been open for at least one year were up 14.4 percent from the same period last year, indicating what chairman and CEO Steve Sadove called ‘significant progress in refining and strengthening our merchandise assortments.’
‘We are pleased with the substantial improvement in operating income for the first quarter which primarily was driven by strong comparable store sales growth and solid expense management,’ Sadove said in a statement.
Over the past two years, Saks shed its mid-brow department stores to concentrate on its Saks Fifth Avenue business, which includes its outlet stores and online division. Saks Fifth Avenue — which had struggled with the wrong fashion formula that skewed too young — aims to reclaim its status with the well-heeled with a makeover. It’s rebuilding its store label fashions, investing in classic brands and better tailoring its stores to meet specific markets.”
THE REAL WORLD RETAILING TAKEAWAY
Is the merchandise assortment the end-all to a successful retail operation? Of course not. But it does propel you quite far down the road toward success. The other factors that can positively impact your business are simple:
1. Set up shop in an area with similar retailers (competition is good) — preferably on the corner of Main St. and Main St. for your target demographic
2. Create a store environment that’s appealing
3. Offer unparalleled customer service
4. Leave customers with a lasting impression
It really is that simple. More on each of these in future posts.