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Will Saks succeed in bringing Fifth Avenue to Toronto?

February 18, 2016Written by George Anderson

The luxury goods market in Canada is either crowded and competitive or wide-open for new entrants depending on whom you ask. Either way, Saks Fifth Avenue has decided the upside outweighs any potential downside with the opening today of its flagship store in Toronto. "After more than two years of planning, our entry into Canada is truly a milestone for our company," said Marc Metrick, president of Saks Fifth Avenue, in a statement. "We cannot wait to bring the Saks experience of an elegant edit of the best designer names, coupled with distinctive, personalized service to Toronto." In addition to offering a wide range of luxury goods across categories, the department store is focused on service with offerings such as Saks at Your Service, which will bring items "directly to a client's home, office, or hotel, anytime and anywhere." Saks joins Nordstrom as the second U.S.-based department store serving luxury customers to enter the Canadian market. Both chains find themselves operating in Canada at a time when the national economy is softening. Some economists believe the country could fall into recession this year. Retail analyst Wendy Evans told The Canadian Press that a slowing economy would most affect "aspirational" shoppers, a group important to both Saks and Nordstrom. The addition of the American chains along with upscale designers opening their own stores means Canada's homegrown stores will need to adjust. "The whole landscape is going to change in a huge way," Susan McGibbon, president of Retail Lab, told The Globe and Mail. "I think it's going to be a pretty fierce battle. It's probably one of the toughest times ever. ... Holt's and Harry's have had a pretty comfortable existence for a long time without much competition at all." Saks plans to open a second full line store in Toronto next week and has plans to open five other locations inside Canada at later dates.

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