SAKS INC. IN STORE DEALS
BIRMINGHAM, Ala. — Saks Inc. said Tuesday it bought two former Montgomery Ward stores, which will be converted into department stores, and that on Saturday it will close a 50,000-square-foot Saks Fifth Avenue in the Desert Fashion Plaza in Palm Springs, Calif.
Saks Fifth Avenue currently operates another 50,000-square-foot store in the Shops at El Paseo in Palm Desert, Calif., which is expected to pick up the business from Palm Springs.
Christina Johnson, president and chief executive officer of Saks Fifth Avenue Enterprises, said in a statement: “We believe our interests are best served by closing the Palm Springs store and focusing our resources and efforts on our new Palm Desert store, which is only minutes away.” It was opened in 1998. “California remains an important market for Saks Fifth Avenue.”
After the Palm Springs closing, there will be 11 Saks Fifth Avenue stores totaling nearly 1 million square feet in California. The Palm Springs unit has about 60 employees who will be offered transfer opportunities or severance packages.
The parent Saks Inc. purchased the 91,400-square-foot former Wards unit in the Apache Mall in Rochester, Minn., and the 148,900-square-foot Bay Park Square store in Ashwaubenon, Wis., in the Green Bay area. The Apache Mall location will be renovated and opened as a Carson Pirie Scott store in fall 2002. A Younkers store will open in Bay Park Square either in late 2002 or in 2003.
The $6 billion Saks Inc. currently operates 62 Saks Fifth Avenue stores, 50 Saks Off 5th outlets, Saks Direct, 40 Parisian specialty department stores and 203 traditional department stores under the names of Proffitt’s, McRae’s, Younkers, Herberger’s, Carson Pirie Scott, Bergner’s and Boston Store.