Pure Navy collection of "elevated basics" from Saks Off 5th - Photo: Saks Fifth Avenue
Saks Off 5th, Saks Fifth Avenue’s off-price concept, has launched The Next Generation, a collection of five new fashion brands “designed in New York City and developed with a fresh aesthetic and fashion-conscious consumer in mind.”
Apparel off-pricers, from Nordstrom Rack to T.J. Maxx, have also developed private labels, but they tend to work as margin builders rather than traffic drivers and differentiators, the apparent goal of the Next Generation collection for Saks Off 5th.
"Saks Off 5th is a world-class destination for style and on-trend products at a great value,” said Tom Ott, chief merchant, Saks Off 5th in a statement. "With the launch of The Next Generation brands and the vast assortment available, we're able to offer our customers a differentiated range of quality fashion and styles at competitive pricing."
The five brands — Ava & Aiden, RENVY, Pure Navy, NHP and Russell Park — appear to be brands initially brought to market by Gilt, the flash-sales pioneer. Gilt was acquired by Hudson’s Bay Co., Saks Fifth Avenue’s parent, in January 2016 and sold to Rue La La, a competing flash site, in June 2018.
"When developing the collections, we wanted pieces to maintain classic wearability while ensuring they felt current, and for several of the brands, trend-forward,” said Irene Newman, head of design, Hudson's Bay Company. “It was important to combine stylish designs with quality fabrics and flattering fits while maintaining attainable pricing."
Off-pricers have generally differentiated from each other by their merchandise mix, including private labels as well as items “specially made” by major vendors. Greater differentiation may be needed with the rapid expansion of existing players and new arrivals such as Macy’s Backstage.
In closing 10 of its 37 off-price Last Call stores last September, Neiman Marcus said fewer stores would help its off-price concept differentiate "by giving customers access to a larger amount of merchandise sourced from the company’s full-line channels."