Change has become the norm at Saks Fifth Avenue since it was purchased by the Canadian-based Hudson Bay Company. The first big change was that all third markdown purchases were not returnable. Now, we even have a bigger shocker. Several sources have confirmed that Saks will no longer run their consolidation sale.
The Saks Fifth Avenue consolidation sale was a time honored tradition when the department stores’ smaller retail locations sent their leftover inventory to the regional flagship. Over the years the discount and layout of the sale had changed drastically. Most recently, the 9th floor was the destination for the bargain basement event but the “real consolidation merchandise” and the best markdowns didn’t get truly attractive until several weeks after the promotion was announced.
We suspect that the new Saks policy means that the overstock inventory will be used to stock SaksOff5th stores. This new game plan makes perfect sense due to the rising popularity of outlet stores and the rising prices of designer close-outs. It makes more sense for Saks to recycle merchandise from their stores than to buy new inventory for their SaksOff5th outlets.