(Article on Saks store closing updated with comments from Saks CEO.)
CEO Stephen Sadove said during Citigroup's (C) Retail Conference, which was broadcast over the Internet, that Saks could close money-losing stores as their leases come due.
The company said in a release on Tuesday that it will shutter its Saks Fifth Avenue stores at Pioneer Place Mall in Portland, Ore., which will affect about 100 employees.Sadove said there won't be a ton of store closures, but there most certainly won't be many new openings. "This is not where the growth is going to be," he said. Instead, Sadove is looking to boost profitability at existing stores. Saks' Internet operation, which Sadove said has become the biggest store in terms of sales, is another area for growth. The goal: to boost gross margins, bringing them back to 2007 levels, which Sadove said is possible as sales improvements seen over the holidays are expected to continue.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV