SFA, Saks.com, and Saks Off 5th to Merge under Saks Global with Staff Changes
Saks Fifth Avenue, Saks.com, and Saks Off 5th are merging into a singular entity known as Saks Global. The action is part of a wider strategy aimed at maximizing efficiency, resulting in about 100 layoffs or the elimination of 1 percent of employee roles.
Critical teams including legal, operations, technology, communications, people, and finance from the three firms will be brought together under the Saks Global umbrella.
This move comes after HBC, the parent company of Saks, put forth a definitive agreement worth $2.65 billion with Amazon, Rhône Capital, Salesforce and other investors and lenders. The agreement stipulates the combination of Neiman Marcus and Saks into Saks Global, a corporation currently in its formation phase. The proposed business merger between Saks and Neiman is still awaiting government approval.
Marc Metrick, the current CEO of Saks.com, is slated to take on the position of CEO for Saks Global where he will manage Saks.com, Saks Fifth Avenue, and Saks Off 5th. He will report directly to Richard Baker, the Executive Chair of Saks Global.
In a memo circulated to staff members, Saks stated, “As a result of these changes, we have eliminated certain roles. Decisions that impact team members are never easy, but they are necessary to strengthen our financial performance and support our future success.”
As part of this restructuring, numerous executives from the different organizations have been appointed to new roles within Saks Global, including Mike Hite as Chief Technology Officer, and Rob Brooks as Chief Operating Officer. Kim Miller takes over from Brooks as the president of Saks Off 5th. Additionally, Sarah Garber has been named chief people officer and Jeff Pedersen has been appointed as the chief financial officer for Saks Global.
Marc Metrick commented on the scenario, “Today marks a major step forward in the creation of Saks Global, which will allow us to build on the success of our strategic move to separate the stores and e-commerce businesses. Powered by technology and centered on the consumer, establishing Saks Global will accelerate our efforts to innovate the luxury shopping experience for our customers.”
If the merger deal receives approval, the new Saks Global entity will comprise of Saks Fifth Avenue, Saks Off 5th, Neiman Marcus and Bergdorf Goodman. The plan is for each brand to continue its operations separately. Furthermore, Hudson’s Bay Company’s (HBC) Canadian business will be recapitalized and remain separate from Saks Global.