The possibility of famous Saks Fifth Avenue coming to Canada just got bigger as Hudson’s Bay sets its eyes on their US rival.
Some sources comment that Hudson’s Bay may not be able to afford the US company’s price but analysts tell that the Canadian retailer has been “in a stronger position than it has been for years to take over Saks”.
This move will not only bring the prominent name to the country but also Saks discount sister Off Fifth; with Nordstrom Inc. coming to Canada next year, Saks will enable Hudson’s Bay to compete with the newcomer on a more even field.
If this acquisition pushes through, some of Hudson’s Bay locations can be converted into Off Fifths or Saks Fifth Avenue or incorporate Saks into the flagship stores. The company already has department store retailer Lord & Taylor in the US but the stores are mainly in the northeast, this will then help Hudson’s Bay get a wider opportunity into the American market while being able to compete with other retail giants in Canada.
HBC’s chief executive officer Richard Baker has already hired former Saks executives Donald Watros and Marc Metrick which further fuels speculations of their intent to buy the upscale retail giant seeing as they already have some knowledge about the American-based corporation.
U.S. equity groups are also rumored to have their eyes on Saks but no comment has been made by either HBC or Saks Inc.