Creating a thrilling off-price luxury experience beyond the store
After separating the digital business from stores in June 2021, Saks OFF 5TH has invested heavily in creating an unparalleled digital experience for the luxury bargain hunter. In this episode of Retail Gets Real, Saks OFF 5TH President and CEO Paige Thomas shares insights into the digital strategy, leading through difficult times and where the future of retail is headed.
While the off-price segment is growing steadily, Thomas notes that few off-price retailers are playing in the ecommerce space. But investing in digital growth made sense for Saks OFF 5TH. The additional investment in the digital operation allows the company to grow quickly and serve customers in a new way. “Where we sit, with serving a luxury customer at a higher average order value, this model plays out for us, and that is really what was the key strategy, and how could we capitalize on the growth potential very quickly?” Thomas says.
While the digital and stores business are now two separate entities, the goal is to create a seamless customer experience. Thomas notes that more than half of online customers return to stores. “When we think of Saks OFF 5TH and the customer, we think of it through an omni lens,” Thomas says. “The customer journey—the pain points and barriers—is what we're focused on to make it easy and convenient for them to find their most favorite brands at a great price.”
Listen to the full episode to learn more about the digital strategy of Saks OFF 5TH, what leadership means to Thomas and her view of the future of retail.