Saks Fifth Ave Prospers Despite a Sluggish Economy

Saks Inc. CEO Steve Sadove (right). Photo by Jenny Marc.

Income inequality,  long-term unemployment and sluggish economic growth continue to plague the US economy.  These are the issues that are bringing people into the streets in cities across the nation in the “Occupy Wall Street” movement.  The perception that the country is divided by class is rising.  A recent Pew survey found that 45% of Americans agree that the country is divided between “haves” and “have nots,” up ten percentage points since 2009.

The good news for luxury retailers is that the haves are still going shopping. With some agressive cost-cutting and savvy management of seasonal expectations, luxury retailers can still make a profit. In recent months, full-price sales have even picked up.

Saks Incorporated, which operates Saks Fifth Avenue, Off Fifth and Saks Direct, is gradually recovering from the disaster wrought by the recession.  Listen below to hear Steve Sadove, Saks’ CEO, tell reporters at SABEW how his company is riding the economic waves.


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