A Wren Says

Previously in retail news, Saks acquired Neiman Marcus. The two struggling luxury department stores were in dire straits on their own. And now together, Saks Global needs a turnaround. There a multiple lawsuits as brands are still seeking payments for product that never came through. Bankruptcy is looming It doesn’t bode well for the future success of the company. It certainly doesn’t point to any current successes. What is in its future?

I am not well versed in the world of retail management, mergers, acquisitions, or the like, but I do know one thing: Change is inevitable.

The luxury consumer is changing. How we shop has changed. The new generation of shoppers is different than those who came before. And don’t we all know that the world is not at all the same as when these two department stores came about. To address all these differences, the approach also needs to shift. And that strategy can’t just be about adding e-commerce and faster shipping. That won’t cut it.

To survive and thrive in this new environment Saks Global is going to need to reintroduce itself to the world. And in turn, it will need to get to know its target consumers in a new way. How have their lives changed and how has that influenced how they shop?

My guess is that Saks Global will be able to make a comeback if it is willing to evolve. The tricky part is not straying too far from their base and risking alienating current loyal shoppers. But perhaps more importantly, they will have to figure out how to attract and keep brands along the way. Regardless of how many shoppers you woo, you can’t make money if you have nothing to sell.

I will keep my eye on any changes I notice at Saks and Neiman’s, because hopefully there will be many.