Business | Economy
Saks decides square is cool as it tries to lure core customers back
Chief executive wants new design to be as recognisable as Burberry check.
- Los Angeles Times-Washington Post News Service
- Published: 00:00 February 6, 2007
Saks wants to be square. That's the shape of the luxury department store's new logo, as well as everything from its gift cards to business cards. It is the basis of an extensive marketing campaign launched this month that officials hope will signal Saks's return to its core customers after years of turmoil in the upper ranks that alienated shoppers.
Chief executive Steve Sadove has made it clear he wants to cater to wealthy women between the ages of 35 and 55 with classic tastes. The chain has suffered something of an identity crisis over the past few years, veering between edgy young shoppers and older traditionalists. That confused customers, and market share diminished.
Though Saks has stabilised over the past year under Sadove, it remains to be seen whether the changes have rekindled shoppers' loyalty.
The new logo is a sleeker version of one used in the company's glory days in 1973, putting the elaborate cursive script inside a square black box. (One company executive likens the process to liposuction.) It then can be blown up and cut into smaller squares so it looks almost abstract, just the swish of the 'S' or the tail of the 'F.' The goal is to make it as recognizable - and as coveted - as Louis Vuitton's LV or the Burberry check.
But some retail experts wonder if Saks might be announcing its reinvention prematurely.
"You're not going to be able to just design something to do that," said Marshal Cohen, chief industry analyst for market research firm NPD Group. "They still have to keep the store experience at the right level and have the merchandise speak for itself.''
Chief executive Christina Johnson stepped down in 2003 after she was unable to keep pace with rival Neiman Marcus. Next came Fred Wilson, formerly of Donna Karan. He was plagued by an accounting scandal that resulted in the resignation of several top executives and rumours that the chain would be sold. He was ousted in January 2006, and R. Brad Martin stepped down as chief executive of parent company Saks.
Saks chased after younger customers craving edgier fashions, axing its popular petites department and angering loyal shoppers. Away went its $60 million private-label clothing line, Real Clothes, with weekend T-shirts and sweater sets, replaced in fall 2005 with a "Wild About Cashmere" campaign -- complete with faux goats inside stores. The concept flopped.
Sadove has spent the past year trying to restore the chain's credibility, particularly with its core 35-to-55 demographic, which he has estimated makes up 60 to 70 per cent of Saks clientele.
The results so far have been positive. Monthly sales at Saks stores open at least a year, a key measure of success in retail, were stronger during the holidays than they had been in two years.
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