Saks plans China expansion

Following successes in Saudi Arabia and the United Arab Emirates, Saks Inc. recently announced new frontiers in the global expansion of Saks Fifth Avenue: China and Macau.

The expansion will stem from a new licensing and consulting agreement with Roosevelt China Investments Corp. (RCIC), according to a Saks release issued April 19, 2006, which will locate and develop appropriate sites for Saks Fifth Avenue stores in those countries. RCIC will own and operate the stores under a licensing agreement.

The first store, to open in Shanghai, China's largest city, will inhabit about 300,000 square feet over four floors in the city's historic Bund district. Saks will sell wares from established and emerging Asian, European and American designers. Merchandise offerings will include jewelry, apparel, shoes, accessories, handbags, cosmetics, fragrances, intimate apparel, bridal and gifts. The store will also offer in-store amenities, including: luxury fitting rooms, specialty cafes, a spa and special events such as fashion and trunk shows.

Saks Inc. operates 55 Saks Fifth Avenue stores, 50 Saks Off 5th Stores and Saks.com. It also operates 57 Club Libby Lu stores and 38 Parisian stores, and says it is exploring strategic alternatives for the latter.


Penney plans 50 new store openings a year


J.C. Penney hopes to open 50 new stores a year between 2007 and 2009, marking its most aggressive expansion plan in more than 20 years.

Company executives told analysts and the press that Penney also planned to invest in renovations of existing stores, reports the Associated Press (AP). After opening 14 stores in 2004 and 18 stores last year, J.C. Penney will open 27 stores this year and will double that pace each year from 2007 to 2009, according to AP.

Up to 90 percent of Penney's new stores will exist outside of shopping malls. Several major markets—including Dallas, Denver, Phoenix, Minneapolis and Chicago—will see at least four new stores each, AP reports. The company's plans to renovate 250 of its 1,000 existing stores over the next four years will help push its capital expenditures from $525 million last year to about $800 million this year, and $1 billion per year in future years, according to AP.

Souce: National Jeweler

www.nationaljeweler.com