Saks Fifth Avenue, the world's largest department store for exclusive and luxury products, plans to open its first Chinese store in Shanghai.
Analysts quoted in local media believe that once Saks Fifth Avenue achieves success in China, it may open a new door for other American department stores to enter China.
According to The Wall Street Journal, Saks Fifth Avenue will adopt a warrant operation pattern in Shanghai, which means it will hand over the operation rights of Saks Fifth Avenue in mainland China and Macau to Roosevelt China Investments Corporation for the latter to manage, and Saks charge a franchising fee from Roosevelt.
Steve Sadove, CEO of Saks Fifth Avenue, says that opening franchises in China will boost the brand awareness of Saks without undertaking operational risk.
Tin Tse, President of Roosevelt, says that Roosevelt plans to cooperate with local real estate developers to open six Saks stores in mainland China and Macau within three years.
Founded in 1924 by Horace Saks and Bernard Gimbel, Saks Fifth Avenue is a unique specialty department store synonymous with fashionable living. It is renowned for its superlative selling services and merchandise offerings.