Hudson’ Bay Company, better known as HBC, has announced that it is all set to set up the digital business of its discount chain, Saks Off 5th, as a standalone firm.
Here it is important to state that earlier this year HBC had also spun off digital operations of Saks Fifth Avenue.
The separation is being done through a deal with Insight Partners, which has led a US $ 200 million equity investment in the digital business – valued at about US $ 1 billion.
Earlier also, Insight Partners had injected US $ 500 million into Saks Fifth Avenue’s online operations much before the spin-off.
Notably, the 105 physical stores of Saks Off 5th – across the US and Canada – will operate independently as O5 and will continue to be owned by HBC.
Paige Thomas, presently CEO and President at Saks Off 5th, will continue with these roles at the newly digitally native business and will also join its board.
She is expected to lead the spun-off company into growth mainly by driving advances in its omnichannel capabilities, through enhancements in fufillment and logistics.
Importantly, the marketing and merchandising for O5 as well as Saks Off 5th’s digital business will be led by Rob Brooks, who will be the new President at O5.
Excited to establish Saks Off 5th as the pre-eminent digitally native luxury off-price retailer HBC’s Governor, Executive Chairman and CEO, Richard Baker said “As a true off-price business with a superior merchandise offering, Saks Off 5th has a significant opportunity to capture additional market share by further expanding its digital capabilities.”
Founded in 1670, HBC is a Canadian retail business group and now owns and operates retail stores in Canada and the US. It was a member of the International Association of Department Stores from 2001 to 2005 and generated CA$9.4 billion in 2018.