Earlier today it was announced that Canada's Hudson Bay Co. will purchase Saks Fifth Avenue for $2.9 billion. While the 108 stores under the Saks umbrella are fine and well, the real prize was the Fifth Avenue flagship. In a recent report, Citigroup estimated the real estate value of the Manhattan store at $807.5 million, which has been criticized for being too low—$1 billion could be more accurate. Additionally, the behemoth location accounts for about 20% of the chain's sales volume.
Hudson Bay Co. operates the department store chain Hudson Bay in Canada and is the parent company of Saks' neighbor, Lord & Taylor. They're pretty good parents, too: back in March, it was announced that L&T's Fifth Avenue store would be getting a $40 million makeover. Saks has been renovating, adding, and expanding their historic flagship recently—all signs point to even more grand plans for the retailer's showpiece store.
· Saks' flagship adds $1B punch to purchase [Crain's]
· Lord & Taylor Joins the NYC Department Store Overhaul [Racked NY]