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Saks Fifth Avenue considering expansion to India

By FashionUnited

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Retail

Saks Fifth Avenue is currently in talks with Aditya Birla Fashion Ltd to open two stores in India as reported by the Hindustan Times.

The first store is expected to open near AeroCity by the Indira Gandhi International Airport in Delhi. The second store is expected to be part of an upcoming retail project in Mumbai's Bandra Kurla Complex business district.

The plans are in their final process according to the story. Saks Fifth Avenue was not immediately available for comment on this story.

Saks potentially opening two stores in India

In the past, those with the top wealth in India would often have to travel to foreign countries to procure luxury goods, but according to a Top of the Pyramid Survey by Kotak Wealth Management, 59 percent of wealthy Indians now buy luxury goods in their own country.

However, wealthy Indians still prefer to shop for luxury goods abroad, and India's luxury good markets lags behind that of countries like China who have invested in the luxury goods sector for years.

Mumbai and Bengaluru are the main cities for luxury goods in India, but they are dominated by single brand retailers like Gucci and Louis Vuitton. This partnership would make Saks Fifth Avenue the first multi-brand luxury goods retailer in the country.

The partnership between Aditya Birla Fashion and Saks Fifth Avenue is intended to be a long-term licensing agreement.

Globally, Saks Fifth Avenue has 60 stores, with other international locations including Canada and Mexico.

Saks' parent company Hudson's Bay Co., which also owns Lord & Taylor, has been attempting to expand its retail footprint. They are reportedly going to attempt to buy Macy's Inc according to Reuters.

A globalized retail approach appears to be a key peace of their business plan.

Photo: via Saks Facebook

Saks Fifth Avenue