How Saks Off 5th is approaching the holiday season

Thanksgiving festivities may have come to an end, but the holiday season is in full swing as we race toward Christmas.

For retailers, that of course means putting up the decor and grand window displays but also putting together key holiday strategies that will resonate with customers today as consumers cut back on spending and chase discounts faced with rising costs.

While luxury as a whole is also seeing the impact of rising prices and reduced consumer spending, luxury off-price department stores like Saks Off 5th are uniquely positioned to meet shoppers’ price-conscious needs.

In fact, when it came to furthering this understanding earlier this year, the company appointed a number of crucial new team members, including Kim Miller as chief marketing and analytics officer and Mara Sirhal as chief merchant and brand officer.

While Miller is focused on boosting the brand’s customer loyalty and personalization focus, Sirhal has been overseeing the buying, planning, and creative departments.

In an exclusive chat, we caught up with Sirhal to understand how Saks Off 5th is approaching the holiday season, its key strategies, and the changing customer.

Tell me about everything Saks Off 5th has been up to to prepare for the holidays. What are the key strategies?

This holiday season, Saks Off 5th’s focus on value has never been more important. We know that consumers are prioritizing deals and discounts, and are coming to Saks Off 5th’s looking for luxury at an incredible value. Providing a strong assortment of gifting categories all season long is key.

Customers are shopping earlier each year, which allows them to spread out their budget and gives them more time to get the best deals. And, similar to last year, we knew coming into the season that this year’s holiday environment would be highly promotional. With this in mind, we adjusted our promotion cadence to provide great deals throughout the season, to capture our customers as soon as they’re ready to shop.

Historically, our designer flash sales, which offer brand favorites such as Stuart Weitzman, Versace, Brunello Cucinelli, and more, have taken place around Cyber Week. This year, we extended our designer flash sales and will offer them throughout the season in response to customers’ desire for deals.

How has the Saks Off 5th’s customer changed over the years?

Over the past few years, we’ve discovered a significant opportunity to appeal to a younger, fashion-minded core customer. This customer is fashion-savvy and someone who loves to shop, find great deals, and stay on top of the latest trends. By tapping into this segment, we’ve been able to really cater to what our core customers are looking for and how they want to shop. We’re using insights from these customers to power everything we do, from the brands we offer and the experience we provide in our stores, to our personalization efforts including our loyalty program, Off 5th rewards, which launched last year.

How have factors like inflation and recession impacted shopper preferences and addressed them for the holiday season?

We know in the current macro environment, customers are looking for value now more than ever. Our mission is to make modern luxury accessible to everyone, and we’re focused every day on doing so. 

This season, we’re confident that our strong, value-focused offering will resonate with our loyal customers, especially in the current market. We are capitalizing on our unique position in the growing luxury off-price sector by leaning into data, analytics, and personalization and leveraging our opportunistic operating model, which allows us to be agile and pivot based on changing consumer preferences.

What categories do you find are doing the best for you?

Sunglasses and fine jewelry are continuing to perform well. We’re seeing a positive response to men’s and women’s contemporary and designer apparel, kid’s designer apparel, as well as beauty which is an emerging category for Saks Off 5th. And so far this season, we’re also seeing particularly strong performance from men’s and women’s cashmere.

Lastly, what's next for Saks Off 5th in terms of long-term plans?

We’re in the thick of the holiday season, so our top priority right now is delivering for our customers for all their gifting needs. As we look ahead to 2024, we’re continuing to double down on personalization and ensure we are using data and analytics to guide our decisions across the board. My team is working to build upon and expand these efforts in the new year to ensure our offering is resonating with our shoppers and truly meets their needs. We have some really exciting things on the horizon, which will come to life both online and in-store.