100 years of Saks on 5th Avenue and they dim the lights?
Saks public relations would have us believe they dimmed the famous Christmas lights on their 100th year to allow the historic building to shine through. However, my sources say something more sinister might be going on. While in New York City last week I noticed every building but one was busy decorating for Christmas. 611 5th Avenue, otherwise known as Saks, stood dark and lonely. I had to dig deeper and find out what is really going happening but you know me, a little history first…
The founder, Andrew Saks, was born in Baltimore, Maryland into a German Jewish family. He worked hard as a general peddler and paper boy before heading to Washington D.C. at the age of 20. I got interested in this story as a break from politics but of course my first finding brings us right back to what I was looking to escape, D.C. For me, this is just another nod that everything is connected.
Andrew made is way south in 1867 as America was still recovering from the Civil War. It was a tough and unstable economic time but Mr. Saks and his brother, Isadore, saw a need for a gentlemen’s outfitter. They opened their first store at 517 F Street in the bustling shopping district of DC. The Saks Brother’s offered their goods at one price, no bargaining, and offered refunds on merchandise returned, neither policies were not common practice at the time and set them apart. They were also wise and took out large ads in the Evening Post to gain attention for the store, this was long before stores had PR and marketing teams. Saks & Co. continued to grow and they eventually acquired the space next door. This was the beginning of Saks making real estate moves as part of their business plan. By 1896 they had stores in Norfolk and Richmond, Virginia; New York City; and Indianapolis.
The New York City store opened in 1902 in Herald Square on 34th Street. The Saks bothers ran the New York store as a family business and added Andrews son’s, Horace and William to the payroll. Sadly, in 1912 Andrew passed away and Horace took over management of the Company. Horace eventually merged with his cousins and they all moved into the famous location on 5th ave. in 1924. For generations families have enjoyed the stores holiday window display and watching them grow larger and more intricate until now.
I was shocked at how many DM’s I received with concern and tips about the lights not going up. It reminded me that my followers are first and foremost fashionistas but also great business women. (I’m sure there are some guys in there too but my personal followers are 92.1% female) I got everything from legal advice, e-commerce tips, buying trend drops tied to inflation and of course back to Real Estate. The current owner of Saks is the Canada based Hudson’s Bay Company, HBC, who acquired the retail giant in 2013. In 2015 HBC launched a three year $250 Million dollar restoration of the famed 5th Avenue location, originally designed by architects Starrett and Van Vleck . I am a sucker for a good restoration story and wanted to give HBC credit for preserving this national treasure. They were also the owners of Lord and Taylor, a favorite of my mothers’ and a spot we frequented growing up in Atlanta. I bet Andrew Saks never dreamed his beloved department store would eventually be purchased by a competitor for $2.9 Billion Dollars. Lord & Taylor was phased out to allow Saks to be the department store name that carried on and now HBC has agreed purchase Neiman Marcus Group, a beloved southern brand from Dallas, TX, for $2.65 Billion. Amazon.com Inc. and Salesforce Inc. will help facilitate the deal and will take minority stakes in a new company, called Saks Global.
Last year the light show was sponsored by Christian Dior. A brand that has seen a serge in value as the wealthiest in the world became richer. You would think lavish spending sprees on high end goods would be enough to keep the lights on.
Globalization the last five years has created more billionaires, the rich are literally getting richer and the poor well poorer. This is sadly an unintended consequence of brands moving from the western world to countries without equivalent minimum wage, health care, environmental and other laws. In a perversion of classical free trade theory the average spender and smaller businesses are getting squashed. For me, I want to see a return to small family owned businesses like Saks used to be. I don’t want one company to own everything. As helpful as Amazon was during the pandemic it is also to blame for the closing of many mom and pop operations around the world. In LA for instance there are whole city blocks that used to be bustling with shops now boarded up with homeless sleeping in the doorways. I noticed it all across America this year while we were campaigning. I love little towns and Main streets and want to help find a balance between the large and small.
One Saks insider let me know that invoices to smaller brands are not being paid to reserve funds for the purchase of Neiman’s in the coming year. This blunder in accounting can potentially crush the petite ateliers. I don’t want to mention names but a dear friend of mine was thrilled years ago when Saks came knocking and added her collection to the department store. Getting to hang her garments in this American Legacy chain helped establish her as big player in the fashion game too. I know they don’t have deep pockets to carry on without being paid. Like any artist she was driven by heart and creativity not a bottom line. This becomes tricky as I also believe in capitalism, if you aren’t performing and know the market you will fail. But this particular brand is in demand I just hope their private online sales can keep them afloat as they don’t have their own brick and mortar. Saks is pivoting from the traditional model of buy/sell to leasing out square footage of their stores to brands like Dior, Chanel, Fendi, Gucci all the big names to help cover costs as the markets are ever changing. We need to look at adaptive reuses for these marvelous old buildings who really stand the test of time and carry on our legacy’s
Many of us will have to cut back on our Holiday spending this year due to inflation and lacks of jobs. I too love a good PR story and also want to spin things that we are celebrating the past 100 years so we don’t loose sight of the next 100 years. More hand made items, less store bought. More singing carols with families less big concerts. This time of year should be an intimate reflection. Maybe that is the message Sak’s is really trying to send. Less is more.
For fun I found a vintage Neiman Marcus Christmas Catalog. I loved when these would arrive. They were a moment to dream and laugh at things I would never have but could easily imagine good use for. This one is for sale on eBay. Thought y’all might enjoy flipping through as a nod to the past.
